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Loans and Allowance for Credit Losses on Loans | 12 Months Ended
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Dec. 31, 2024
Receivables [Abstract] |
Loans and Allowance for Credit Losses on Loans | LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS The composition of the Company’s loan portfolio, excluding residential loans held for sale, was as follows for the dates indicated:
|  | December 31,
(In thousands) |  | 2024 |  | 2023
Commercial Loans: |  |  |  |
Commercial real estate - non-owner-occupied |  | $ | 1,387,252 |  |  | $ | 1,370,446 |
Commercial real estate - owner-occupied |  | 324,712 |  |  | 301,860 |
Commercial |  | 382,785 |  |  | 403,901 |
Total commercial loans |  | 2,094,749 |  |  | 2,076,207 |
Retail Loans: |  |  |  |
Residential real estate |  | 1,752,249 |  |  | 1,763,378 |
Home equity |  | 253,251 |  |  | 240,341 |
Consumer |  | 15,010 |  |  | 18,168 |
Total retail loans |  | 2,020,510 |  |  | 2,021,887 |
Total loans |  | $ | 4,115,259 |  |  | $ | 4,098,094 |
The loan balances for each portfolio segment presented above are net of their respective net unamortized fair value mark discount on acquired loans and net unamortized loan origination costs for the dates indicated:
|  | December 31,
(In thousands) |  | 2024 |  | 2023
Net unamortized fair value mark discount on acquired loans |  | $ | (79) |  |  | $ | (168) |
Net unamortized loan origination costs |  | 6,685 |  |  | 7,113 |
Total |  | $ | 6,606 |  |  | $ | 6,945 |
The Company's lending activities are primarily conducted in Maine, but also includes a loan production office in New Hampshire. The Company originates single- and multi-family residential loans, commercial real estate loans, business loans, municipal loans and a variety of consumer loans. In addition, the Company makes loans for the construction of residential homes, multi-family properties and commercial real estate properties. The ability and willingness of borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity within the geographic area and the general economy. Related Party Loans. In the normal course of business, the Company makes loans to certain officers, directors and their associated companies, under terms that are consistent with the Company’s lending policies and regulatory requirements and do not involve more than the normal risk of collectability or present other unfavorable features. At December 31, 2024 and 2023, outstanding loans to certain officers, directors and their associated companies were less than 5% of the Company's shareholders' equity. ACL on Loans The Company manages its loan portfolio proactively to effectively identify problem credits and assess trends early, implement effective work-out strategies, and take charge-offs as promptly as practical. In addition, the Company continuously reassesses its underwriting standards in response to credit risk posed by changes in economic conditions. The Company monitors and manages credit risk through the following governance structure: •The Credit Risk team, Collection and Special Assets team and the Credit Risk Policy Committee, which is an internal management committee comprised of various executives and senior managers across business lines, including Accounting and Finance, Credit Underwriting, Collections and Special Assets, Risk, and Commercial and Retail Banking, oversee the Company's systems and procedures to monitor the credit quality of its loan portfolio, conduct a loan review program, and maintain the integrity of the loan rating system. •The adequacy of the ACL is overseen by the Management Provision Committee, which is an internal management committee comprised of various Company executives and senior managers across business lines, including Accounting and Finance, Credit Underwriting, Collections and Special Assets, Compliance, and Commercial and Retail Banking. The Management Provision Committee supports the oversight efforts of the Audit Committee of the Board of Directors. •The Directors' Credit Committee of the Board of Directors reviews large credit exposures, monitors external loan review reports, reviews the lending authority for individual loan officers when required, and has approval authority and responsibility for all matters regarding the loan policy and other credit-related policies, including reviewing and monitoring asset quality trends, and concentration levels. •The Audit Committee of the Board of Directors has approval authority and oversight responsibility for the ACL adequacy and methodology. Segmentation. For purposes of determining the ACL on loans, the Company disaggregates its loans into portfolio segments. Each portfolio segment possesses unique risk characteristics that are considered when determining the appropriate level of allowance. As of December 31, 2024 and 2023, the Company's loan portfolio segments, as determined based on the unique risk characteristics of each, included the following: Commercial Real Estate - Non-Owner-Occupied. Non-owner occupied commercial real estate loans are, in substance, all commercial real estate loans that are not categorized by the Company as owner-occupied commercial real estate loans. Non owner-occupied commercial estate loans are investment properties in which the primary source for repayment of the loan by the borrower is derived from rental income associated with the property or the proceeds of the sale, refinancing, or permanent refinancing of the property. Non-owner-occupied commercial real estate loans consist of mortgage loans to finance investments in real property that may include, but are not limited to, multi-family residential, commercial/retail office space, industrial/warehouse space, hotels, assisted living facilities and other specific use properties. Also included within the non-owner-occupied commercial real estate loan segment are construction projects until they are completed. Commercial real estate loans are typically written with amortizing payment structures. Collateral values are determined based upon appraisals and evaluations in accordance with established policy guidelines. Maximum loan-to-value ratios at origination are governed by established policy and regulatory guidelines. Commercial Real Estate - Owner-Occupied. Generally, owner-occupied commercial real estate loans are properties that are owned and operated by the borrower, and the primary source for repayment is the cash flow from the ongoing operations and activities conducted by the borrower's business. Owner-occupied commercial real estate loans consist of mortgage loans to finance investments in real property that may include, but are not limited to, commercial/retail office space, restaurants, educational and medical practice facilities and other specific use properties. Commercial real estate loans are typically written with amortizing payment structures. Collateral values are determined based upon appraisals and evaluations in accordance with established policy guidelines. Maximum loan-to-value ratios at origination are governed by established policy and regulatory guidelines. Commercial. Commercial loans consist of revolving and term loan obligations extended to business and corporate enterprises for the purpose of financing working capital and/or capital investment. Collateral generally consists of pledges of business assets including, but not limited to, accounts receivable, inventory, plant and equipment, and/or real estate, if applicable. Commercial loans are primarily paid by the operating cash flow of the borrower. Commercial loans may be secured or unsecured. Residential Real Estate. Residential real estate loans held in the Company's loan portfolio are made to borrowers who demonstrate the ability to make scheduled payments with full consideration to underwriting factors. Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan-to-value ratios within established policy guidelines. Collateral consists of mortgage liens on one- to four-family residences, including for investment purposes. Home Equity. Home equity loans and lines of credit are made to qualified individuals and are secured by senior or junior mortgage liens on owner-occupied one- to four-family homes, condominiums, or vacation homes. The home equity loan has a fixed rate and is billed as equal payments comprised of principal and interest. The home equity line of credit has a variable rate and is billed as interest-only payments during the draw period. At the end of the draw period, the home equity line of credit is billed as a percentage of the principal balance plus all accrued interest. Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan-to-value ratios within established policy guidelines. Consumer. Consumer loan products including personal lines of credit and amortizing loans made to qualified individuals for various purposes such as education, auto loans, debt consolidation, personal expenses or overdraft protection. Borrower qualifications include favorable credit history combined with supportive income and collateral requirements within established policy guidelines, as applicable. Consumer loans may be secured or unsecured. ACL on Loans. The following table presents the activity in the ACL on loans, as reported under CECL, for the periods indicated:
|  | Commercial Real Estate |  |  |  |  |  |  |  |  |  |  |
(In thousands) |  | Non-Owner-Occupied |  | Owner- Occupied |  | Commercial |  |  | Residential Real Estate |  | Home Equity |  | Consumer |  | Total
At or For the Year Ended December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance, December 31, 2023 |  | $ | 16,581 |  |  | $ | 2,290 |  |  | $ | 4,869 |  |  |  | $ | 10,254 |  |  | $ | 2,217 |  |  | $ | 724 |  |  | $ | 36,935 |
Loans charged-off |  | — |  |  | — |  |  | (1,784) |  |  |  | — |  |  | (1) |  |  | (98) |  |  | (1,883) |
Recoveries |  | 10 |  |  | — |  |  | 455 |  |  |  | 26 |  |  | 98 |  |  | 34 |  |  | 623 |
(Credit) provision for loan losses |  | (1,694) |  |  | 191 |  |  | 2,316 |  |  |  | (301) |  |  | 83 |  |  | (542) |  |  | 53 |
Ending balance, December 31, 2024 |  | $ | 14,897 |  |  | $ | 2,481 |  |  | $ | 5,856 |  |  |  | $ | 9,979 |  |  | $ | 2,397 |  |  | $ | 118 |  |  | $ | 35,728 |
At 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 |
Loans charged-off |  | — |  |  | (58) |  |  | (1,560) |  |  |  | (18) |  |  | — |  |  | (91) |  |  | (1,727) |
Recoveries |  | 19 |  |  | — |  |  | 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 |
The significant model inputs and assumptions used within the discounted cash flow model for purposes of estimating the ACL on loans were: •Macroeconomic (loss) drivers: As of December 31, 2024 and 2023, the following loss drivers for each loan segment were used to calculate the expected PD over the forecast and reversion period: (i) commercial real estate – non-owner-occupied used Maine Unemployment and change in Maine GDP; (ii) commercial real estate – owner-occupied used Maine Unemployment and change in Maine GDP, (iii) commercial used Maine Unemployment and change in National GDP; (iv) residential real estate used Maine Unemployment and change in Maine House Price Index, (v) home equity used Maine Unemployment and change in Maine House Price Index and (vi) consumer used Maine Unemployment and change in National GDP. •Reasonable and Supportable Forecast Period: As of December 31, 2024 and 2023, the ACL on loans estimate used a reasonable and supportable forecast period of two years. •Reversion Period: As of December 31, 2024 and 2023, the ACL on loans estimate used a reversion period of two years. •Prepayment Speeds: As of December 31, 2024 and 2023, the estimated prepayment speed for each loan segment continued to be derived used internally-sourced prepayment data. There were no changes to the prepayment speeds in 2024. •Qualitative Factors: As of December 31, 2024 and 2023, the ACL on loans estimate incorporated various qualitative factors into the calculation. Credit Concentrations. The Company focuses on maintaining a well-balanced and diversified loan portfolio. Despite such efforts, it is recognized that credit concentrations may occasionally emerge as a result of economic conditions, changes in local demand, natural loan growth and runoff. To identify credit concentrations effectively, all commercial and commercial real estate loans are assigned Standard Industrial Classification codes, North American Industry Classification System codes, and state and county codes. As of December 31, 2024, the Company's total exposure to the lessors of residential buildings' industry and lessors of nonresidential buildings’ industry were both 13% of total loans, and 32% and 31% of total commercial real estate loans, respectively. There were no other industry concentrations exceeding 10% of the Company's total loan portfolio as of December 31, 2024. Credit Quality Indicators. To further identify loans with similar risk profiles, the Company categorizes each portfolio segment into classes by credit risk characteristic and applies a credit quality indicator to each portfolio segment. The indicators for commercial real estate - non-owner-occupied and owner-occupied, commercial and residential real estate portfolio segments are represented by Grades 1 through 10 as outlined below. In general, risk ratings are adjusted periodically throughout the year as updated analysis and review warrants. This process may include, but is not limited to, annual credit and loan reviews, periodic reviews of loan performance metrics, such as delinquency rates, and quarterly reviews of adversely risk rated loans. The Company uses the following definitions when assessing grades for the purpose of evaluating the risk and adequacy of the ACL on loans: •Grade 1 through 6 — Grades 1 through 6 represent groups of loans that are not subject to adverse criticism as defined in regulatory guidance. Loans in these groups exhibit characteristics that represent low to moderate risks, which is measured using a variety of credit risk criteria, such as cash flow coverage, debt service coverage, balance sheet leverage, liquidity, management experience, industry position, prevailing economic conditions, support from secondary sources of repayment and other credit factors that may be relevant to a specific loan. In general, these loans are supported by properly margined collateral and guarantees of principal parties. •Grade 7 — Loans with potential weakness (Special Mention). Loans in this category are currently protected based on collateral and repayment capacity and do not constitute undesirable credit risk, but have potential weakness that may result in deterioration of the repayment process at some future date. This classification is used if a negative trend is evident in the obligor’s financial situation. Special mention loans do not sufficiently expose the Company to warrant adverse classification. •Grade 8 — Loans with definite weakness (Substandard). Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor or by collateral pledged. Borrowers experience difficulty in meeting debt repayment requirements. Deterioration is sufficient to cause the Company to look to the sale of collateral. •Grade 9 — Loans with potential loss (Doubtful). Loans classified as doubtful have all the weaknesses inherent in the substandard grade with the added characteristic that the weaknesses make collection or liquidation of the loan in full highly questionable and improbable. The possibility of some loss is extremely high, but because of specific pending factors that may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. •Grade 10 — Loans with definite loss (Loss). Loans classified as loss are considered uncollectible. The loss classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the asset because recovery and collection time may be protracted. The Company periodically reassesses asset quality indicators to reflect appropriately the risk composition of the Company’s loan portfolio. Home equity and consumer loans are not individually risk rated, but rather analyzed as groups taking into account delinquency rates and other economic conditions which may affect the ability of borrowers to meet debt service requirements, including interest rates and energy costs. Performing loans include loans that are current and loans that are past due less than 90 days. Loans that are past due over 90 days and non-accrual loans, are considered non-performing. Based on the most recent analysis performed, the risk category of loans by portfolio segment by vintage, reported under the CECL methodology, was as follows as of December 31, 2024:
(In thousands) |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Revolving Loans Amortized Cost Basis |  | Revolving Loans Converted to Term |  | Total
Commercial real estate - non-owner-occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (Grades 1-6) |  | $ | 91,377 |  |  | $ | 107,607 |  |  | $ | 324,743 |  |  | $ | 285,862 |  |  | $ | 140,686 |  |  | $ | 390,527 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,340,802 |
Special mention (Grade 7) |  | — |  |  | — |  |  | — |  |  | — |  |  | 342 |  |  | 225 |  |  | — |  |  | — |  |  | 567 |
Substandard (Grade 8) |  | — |  |  | 195 |  |  | 25,252 |  |  | — |  |  | — |  |  | 20,436 |  |  | — |  |  | — |  |  | 45,883 |
Doubtful (Grade 9) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial real estate - non-owner-occupied |  | $ | 91,377 |  |  | $ | 107,802 |  |  | $ | 349,995 |  |  | $ | 285,862 |  |  | $ | 141,028 |  |  | $ | 411,188 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,387,252 |
Gross charge-offs for the year ended |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial real estate - owner-occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (Grades 1-6) |  | $ | 53,436 |  |  | $ | 31,141 |  |  | $ | 48,633 |  |  | $ | 71,629 |  |  | $ | 19,582 |  |  | $ | 89,092 |  |  | $ | — |  |  | $ | — |  |  | $ | 313,513 |
Special mention (Grade 7) |  | — |  |  | — |  |  | — |  |  | 1,900 |  |  | — |  |  | 304 |  |  | — |  |  | — |  |  | 2,204 |
Substandard (Grade 8) |  | — |  |  | 540 |  |  | 822 |  |  | 191 |  |  | — |  |  | 7,442 |  |  | — |  |  | — |  |  | 8,995 |
Doubtful (Grade 9) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial real estate - owner-occupied |  | $ | 53,436 |  |  | $ | 31,681 |  |  | $ | 49,455 |  |  | $ | 73,720 |  |  | $ | 19,582 |  |  | $ | 96,838 |  |  | $ | — |  |  | $ | — |  |  | $ | 324,712 |
Gross charge-offs for the year ended |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (Grades 1-6) |  | $ | 81,815 |  |  | $ | 26,918 |  |  | $ | 44,283 |  |  | $ | 30,134 |  |  | $ | 16,644 |  |  | $ | 23,014 |  |  | $ | 115,795 |  |  | $ | 37,211 |  |  | $ | 375,814 |
Special mention (Grade 7) |  | 534 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 282 |  |  | — |  |  | 816 |
Substandard (Grade 8) |  | — |  |  | 1,030 |  |  | 706 |  |  | 159 |  |  | 125 |  |  | 1,175 |  |  | 984 |  |  | 1,976 |  |  | 6,155 |
Doubtful (Grade 9) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial |  | $ | 82,349 |  |  | $ | 27,948 |  |  | $ | 44,989 |  |  | $ | 30,293 |  |  | $ | 16,769 |  |  | $ | 24,189 |  |  | $ | 117,061 |  |  | $ | 39,187 |  |  | $ | 382,785 |
Gross charge-offs for the year ended |  | $ | — |  |  | $ | 146 |  |  | $ | 47 |  |  | $ | 54 |  |  | $ | 89 |  |  | $ | 1,017 |  |  | $ | 357 |  |  | $ | 74 |  |  | $ | 1,784 |
Residential Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (Grades 1-6) |  | $ | 133,856 |  |  | $ | 151,020 |  |  | $ | 500,756 |  |  | $ | 502,285 |  |  | $ | 204,756 |  |  | $ | 255,104 |  |  | $ | 406 |  |  | $ | 1,175 |  |  | $ | 1,749,358 |
Special mention (Grade 7) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard (Grade 8) |  | — |  |  | — |  |  | — |  |  | 778 |  |  | — |  |  | 2,113 |  |  | — |  |  | — |  |  | 2,891 |
Doubtful (Grade 9) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total residential real estate |  | $ | 133,856 |  |  | $ | 151,020 |  |  | $ | 500,756 |  |  | $ | 503,063 |  |  | $ | 204,756 |  |  | $ | 257,217 |  |  | $ | 406 |  |  | $ | 1,175 |  |  | $ | 1,752,249 |
Gross charge-offs for the year ended |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Home equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 3,708 |  |  | $ | 13,961 |  |  | $ | 20,003 |  |  | $ | 439 |  |  | $ | 302 |  |  | $ | 13,378 |  |  | $ | 185,581 |  |  | $ | 15,448 |  |  | $ | 252,820 |
Non-performing |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 8 |  |  | 264 |  |  | 159 |  |  | 431 |
Total home equity |  | $ | 3,708 |  |  | $ | 13,961 |  |  | $ | 20,003 |  |  | $ | 439 |  |  | $ | 302 |  |  | $ | 13,386 |  |  | $ | 185,845 |  |  | $ | 15,607 |  |  | $ | 253,251 |
Gross charge-offs for the year ended |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | 1 |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 4,307 |  |  | $ | 3,188 |  |  | $ | 2,784 |  |  | $ | 1,080 |  |  | $ | 380 |  |  | $ | 2,102 |  |  | $ | 1,151 |  |  | $ | — |  |  | $ | 14,992 |
Non-performing |  | — |  |  | — |  |  | 15 |  |  | — |  |  | — |  |  | 3 |  |  | — |  |  | — |  |  | 18 |
Total consumer |  | $ | 4,307 |  |  | $ | 3,188 |  |  | $ | 2,799 |  |  | $ | 1,080 |  |  | $ | 380 |  |  | $ | 2,105 |  |  | $ | 1,151 |  |  | $ | — |  |  | $ | 15,010 |
Gross charge-offs for the year ended |  | $ | — |  |  | $ | 47 |  |  | $ | 18 |  |  | $ | 14 |  |  | $ | 5 |  |  | $ | — |  |  | $ | 14 |  |  | $ | — |  |  | $ | 98 |
Based on the most recent analysis performed, the risk category of loans by portfolio segment by vintage, reported under the CECL methodology, was as follows as of December 31, 2023:
(In thousands) |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Revolving Loans Amortized Cost Basis |  | Revolving Loans Converted to Term |  | Total
As of 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 |
Past Due and Non-Accrual Loans. The Company closely monitors the performance of its loan portfolio. A loan is placed on non-accrual when the financial condition of the borrower is deteriorating, payment in full of both principal and interest is not expected as scheduled or principal or interest has been in default for 90 days or more. Exceptions may be made if the asset is secured by collateral sufficient to satisfy both the principal and accrued interest in full and collection is reasonably assured. When one loan to a borrower is placed on non-accrual, all other loans to the borrower are re-evaluated to determine if they should also be placed on non-accrual. All previously accrued and unpaid interest is reversed at this time. A loan will return to accrual when collection of principal and interest is assured and the borrower has demonstrated timely payments of principal and interest for a reasonable period, generally at least six months. Unsecured loans, however, are not normally placed on non-accrual because they are charged-off once their collectability is in doubt. 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 |  | Current |  | Total Loans Outstanding |  | Loans > 90 Days Past Due and Accruing |  |
December 31, 2024: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate - non-owner-occupied |  | $ | 59 |  |  | $ | — |  |  | $ | 130 |  |  | $ | 189 |  |  | $ | 1,387,063 |  |  | $ | 1,387,252 |  |  | $ | — |  |  |
Commercial real estate - owner-occupied |  | 85 |  |  | 545 |  |  | 430 |  |  | 1,060 |  |  | 323,652 |  |  | 324,712 |  |  | — |  |  |
Commercial |  | 373 |  |  | 265 |  |  | 1,548 |  |  | 2,186 |  |  | 380,599 |  |  | 382,785 |  |  | — |  |  |
Residential real estate |  | 333 |  |  | 333 |  |  | 974 |  |  | 1,640 |  |  | 1,750,609 |  |  | 1,752,249 |  |  | — |  |  |
Home equity |  | 428 |  |  | 141 |  |  | 125 |  |  | 694 |  |  | 252,557 |  |  | 253,251 |  |  | — |  |  |
Consumer |  | 55 |  |  | 13 |  |  | 18 |  |  | 86 |  |  | 14,924 |  |  | 15,010 |  |  | — |  |  |
Total |  | $ | 1,333 |  |  | $ | 1,297 |  |  | $ | 3,225 |  |  | $ | 5,855 |  |  | $ | 4,109,404 |  |  | $ | 4,115,259 |  |  | $ | — |  |  |
December 31, 2023: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate - non-owner-occupied |  | $ | 44 |  |  | $ | 41 |  |  | $ | 184 |  |  | $ | 269 |  |  | $ | 1,370,177 |  |  | $ | 1,370,446 |  |  | $ | — |  |  |
Commercial real estate - owner-occupied |  | 655 |  |  | — |  |  | — |  |  | 655 |  |  | 301,205 |  |  | 301,860 |  |  | — |  |  |
Commercial |  | 1,153 |  |  | 1,199 |  |  | 1,155 |  |  | 3,507 |  |  | 400,394 |  |  | 403,901 |  |  | — |  |  |
Residential real estate |  | 1,317 |  |  | 322 |  |  | 1,094 |  |  | 2,733 |  |  | 1,760,645 |  |  | 1,763,378 |  |  | — |  |  |
Home equity |  | 521 |  |  | 451 |  |  | 301 |  |  | 1,273 |  |  | 239,068 |  |  | 240,341 |  |  | — |  |  |
Consumer |  | 85 |  |  | 8 |  |  | 5 |  |  | 98 |  |  | 18,070 |  |  | 18,168 |  |  | — |  |  |
Total |  | $ | 3,775 |  |  | $ | 2,021 |  |  | $ | 2,739 |  |  | $ | 8,535 |  |  | $ | 4,089,559 |  |  | $ | 4,098,094 |  |  | $ | — |  |  |
The following table presents the amortized cost basis of loans on non-accrual status by portfolio segment as of the dates indicated:
|  | December 31,
|  | 2024 |  | 2023
(In thousands) |  | Non-Accrual Loans With an Allowance |  | Non-Accrual Loans Without an Allowance |  | Total Non-Accrual Loans |  | Non-Accrual Loans With an Allowance |  | Non-Accrual Loans Without an Allowance |  | Total Non-Accrual Loans
Commercial real estate - non-owner-occupied |  | $ | 129 |  |  | $ | — |  |  | $ | 129 |  |  | $ | 261 |  |  | $ | — |  |  | $ | 261 |
Commercial real estate - owner-occupied |  | 430 |  |  | — |  |  | 430 |  |  | 125 |  |  | — |  |  | 125 |
Commercial |  | 1,927 |  |  | — |  |  | 1,927 |  |  | 1,725 |  |  | — |  |  | 1,725 |
Residential real estate |  | 1,891 |  |  | — |  |  | 1,891 |  |  | 2,541 |  |  | — |  |  | 2,541 |
Home equity |  | 434 |  |  | — |  |  | 434 |  |  | 759 |  |  | — |  |  | 759 |
Consumer |  | 18 |  |  | — |  |  | 18 |  |  | 37 |  |  | — |  |  | 37 |
Total |  | $ | 4,829 |  |  | $ | — |  |  | $ | 4,829 |  |  | $ | 5,448 |  |  | $ | — |  |  | $ | 5,448 |
The following table presents the amortized cost basis of collateral-dependent loans by portfolio segment and collateral type, as of the dates indicated:
|  | December 31, 2024 |  | December 31, 2023
|  | Collateral Type | Total Collateral -Dependent Non-Accrual Loans |  | Collateral Type | Total Collateral -Dependent Non-Accrual Loans
(In thousands) |  | Real Estate |  | Other Assets |  | Real Estate |  | Other Assets
Commercial real estate - non-owner-occupied |  | $ | 4,448 |  |  | $ | — |  | $ | 4,448 |  |  | $ | 4,494 |  |  | $ | — |  | $ | 4,494 |
Commercial |  | — |  |  | 669 |  | 669 |  |  | 671 |  |  | — |  | 671 |
Total |  | $ | 4,448 |  |  | $ | 669 |  | $ | 5,117 |  |  | $ | 5,165 |  |  | $ | — |  | $ | 5,165 |
Collateral-dependent loans are loans for which the repayment is expected to be provided substantially by the underlying collateral and there are no other available and reliable sources of repayment. Interest income that would have been recognized if loans on non-accrual status had been current in accordance with their original terms for the years ended December 31, 2024, 2023, and 2022 is estimated to have been $190,000, $131,000, and $145,000, respectively. The Company's policy is to reverse previously recorded interest income when a loan is placed on non-accrual, as such, the Company did not record any interest income on its non-accrual for the years ended December 31, 2024, 2023, and 2022. As of December 31, 2024 and 2023, total accrued interest receivable on loans, which has been excluded from reported amortized cost basis on loans, was $12.7 million at each date, and reported within other assets on the consolidated statements of condition. An allowance was not carried on the accrued interest receivable at either date. Loan Modifications for Borrowers Experiencing Financial Difficulty The Company offers several types of loans and receivables modification programs to borrowers experiencing financial difficulty, primarily interest rate reductions and term extensions. In such instances, the Company may modify loans and receivables with the intention to minimize future losses and improve collectability, while providing customers with temporary or permanent financial relief. The following table presents the amortized cost basis of loans, by class and by type of modification, that were both experiencing financial difficulty and modified during the year ended December 31, 2024 and 2023. 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 December 31, 2024 and 2023, is also presented below:
(In thousands) |  | Number of modified loans |  | 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
December 31, 2024: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | 3 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,060 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | 0.3 | %
Total |  | 3 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,060 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | — | %
December 31, 2023: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate - non-owner-occupied |  | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,494 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | 0.3 | %
Total |  | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,494 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | 0.1 | %
The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the year ended December 31, 2024 and December 31, 2023:
(In thousands) |  | Principal Forgiveness |  | Weighted Average Interest Rate Reduction |  | Weighted Average Term Extension (Years)
December 31, 2024: |  |  |  |  |  |
Commercial |  | $ | — |  |  | — | % |  | 1.4
December 31, 2023: |  |  |  |  |  |
Commercial real estate - non-owner-occupied |  | $ | — |  |  | — | % |  | 1.3
The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts and relevant factors are considered while assessing the adequacy of the ACL. As of December 31, 2024 and 2023, there were no modified loans, or commitments to lend additional funds to borrowers experiencing financial difficulty that were past due or for which the borrower subsequently defaulted. In-Process Foreclosure Proceedings At December 31, 2024 and 2023, the Company had $1.0 million and $1.1 million, respectively, of consumer mortgage loans secured by residential real estate properties for which foreclosure proceedings were in process.

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