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Loans (Tables)

6 Months Ended

Jun. 30, 2024

Loans and Leases Receivable Disclosure [Abstract]

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
June 30, 2024
Commercial business		$	713,192			$	755			$	713,947
Commercial mortgage			2,089,018				(3,148	)			2,085,870
Residential real estate loans			635,717				11,958				647,675
Residential real estate lines			72,182				3,328				75,510
Consumer indirect			865,066				29,530				894,596
Other consumer			43,939				(69	)			43,870
Total		$	4,419,114			$	42,354				4,461,468
Allowance for credit losses – loans											(43,952	)
Total loans, net										$	4,417,516
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
June 30, 2024
Commercial business		$	135			$	213			$	—			$	348			$	5,680			$	707,164			$	713,192			$	277
Commercial mortgage			2,371				—				—				2,371				10,452				2,076,195				2,089,018				10,028
Residential real estate loans			1,370				117				—				1,487				5,961				628,269				635,717				5,961
Residential real estate lines			127				—				—				127				183				71,872				72,182				183
Consumer indirect			9,817				1,710				—				11,527				2,897				850,642				865,066				2,897
Other consumer			132				16				36				184				—				43,755				43,939				—
Total loans, gross		$	13,952			$	2,056			$	36			$	16,044			$	25,173			$	4,377,897			$	4,419,114			$	19,346
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 June 30, 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			1,393				0.2	%
Residential real estate lines			—				0.0	%
Consumer indirect			—				0.0	%
Other consumer			—				0.0	%
Total		$	1,393				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 loan, which reduced the monthly payment amount for the borrower.

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 six months ended June 30, 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			841				165				387
Residential real estate lines			-				-				-
Consumer indirect			-				-				-
Other consumer			-				-				-
Total		$	841			$	165			$	387

Summary of Collateral Dependent Loans

The following table presents the amortized cost basis of collateral dependent loans by collateral type as of June 30, 2024 and December 31, 2023 (in thousands):


		Collateral type
		Business assets				Real property				Total				Specific Reserve
June 30, 2024
Commercial business		$	6,922			$	5,000			$	11,922			$	2,332
Commercial mortgage			13				20,392				20,405				41
Total		$	6,935			$	25,392			$	32,327			$	2,373

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
June 30, 2024
Commercial Business:
Uncriticized		$	36,367			$	99,066			$	83,504			$	69,204			$	36,590			$	57,679			$	297,229			$	—			$	679,639
Special mention			—				5,502				339				2,262				30				1,809				8,345				—				18,287
Substandard			57				1,127				23				95				34				271				8,836				—				10,443
Doubtful			—				—				5,038				—				—				321				219				—				5,578
Total Commercial Business loans		$	36,424			$	105,695			$	88,904			$	71,561			$	36,654			$	60,080			$	314,629			$	—			$	713,947
Current period gross write-offs		$	—			$	—			$	—			$	20			$	—			$	50			$	—			$	—			$	70

Commercial Mortgage:
Uncriticized		$	101,529			$	375,714			$	635,528			$	297,368			$	198,355			$	411,771			$	—			$	—			$	2,020,265
Special mention			—				—				5,122				17,824				6,825				14,413				—				—				44,184
Substandard			—				—				—				—				874				10,095				—				—				10,969
Doubtful			—				1,042				326				4,098				13				4,973				—				—				10,452
Total Commercial Mortgage loans		$	101,529			$	376,756			$	640,976			$	319,290			$	206,067			$	441,252			$	—			$	—			$	2,085,870
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
June 30, 2024
Residential Real Estate Loans
Performing		$	20,993			$	114,734			$	77,866			$	77,781			$	105,113			$	245,227			$	—			$	—			$	641,714
Non-performing			—				297				498				963				1,346				2,857				—				—				5,961
Total Residential Real Estate Loans		$	20,993			$	115,031			$	78,364			$	78,744			$	106,459			$	248,084			$	—			$	—			$	647,675
Current period gross write-offs		$	—			$	—			$	—			$	—			$	—			$	107			$	—			$	—			$	107

Residential Real Estate Lines
Performing		$	—			$	—			$	—			$	—			$	—			$	—			$	70,679			$	4,648			$	75,327
Non-performing			—				—				—				—				—				—				53				130				183
Total Residential Real Estate Lines		$	—			$	—			$	—			$	—			$	—			$	—			$	70,732			$	4,778			$	75,510
Current period gross write-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Consumer Indirect
Performing		$	110,666			$	217,625			$	285,114			$	189,766			$	59,330			$	29,198			$	—			$	—			$	891,699
Non-performing			85				715				781				877				281				158				—				—				2,897
Total Consumer Indirect Loans		$	110,751			$	218,340			$	285,895			$	190,643			$	59,611			$	29,356			$	—			$	—			$	894,596
Current period gross write-offs		$	15			$	2,352			$	3,296			$	2,407			$	885			$	1,008			$	—			$	—			$	9,963

Other Consumer
Performing		$	4,059			$	32,445			$	3,035			$	1,023			$	559			$	306			$	2,407			$	—			$	43,834
Non-performing			—				—				—				—				—				—				36				—				36
Total Other Consumer Loans		$	4,059			$	32,445			$	3,035			$	1,023			$	559			$	306			$	2,443			$	—			$	43,870
Current period gross write-offs		$	312			$	57			$	105			$	25			$	22			$	4			$	55			$	—			$	580

(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 and six months ended June 30, 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 June 30, 2024
Allowance for credit losses – loans:
Beginning balance		$	12,991			$	14,113			$	4,630			$	794			$	9,854			$	693			$	43,075
Charge-offs			(53	)			—				(99	)			—				(3,746	)			(311	)			(4,209	)
Recoveries			46				3				3				—				2,902				133				3,087
(Benefit) provision			(738	)			1,249				(323	)			(25	)			1,832				4				1,999
Ending balance		$	12,246			$	15,365			$	4,211			$	769			$	10,842			$	519			$	43,952
Six months ended June 30, 2024
Beginning balance		$	13,102			$	15,858			$	5,286			$	764			$	14,099			$	1,973			$	51,082
Charge-offs			(70	)			—				(107	)			—				(9,963	)			(580	)			(10,720	)
Recoveries			100				4				7				—				6,146				220				6,477
Provision (benefit)			(886	)			(497	)			(975	)			5				560				(1,094	)			(2,887	)
Ending balance		$	12,246			$	15,365			$	4,211			$	769			$	10,842			$	519			$	43,952

		Commercial Business				Commercial Mortgage				Residential Real Estate Loans				Residential Real Estate Lines				Consumer Indirect				Other Consumer				Total
Three months ended June 30, 2023
Allowance for credit losses – loans:
Beginning balance		$	12,911			$	15,195			$	4,213			$	651			$	14,117			$	441			$	47,528
Charge-offs			(90	)			(18	)			(39	)			(25	)			(3,009	)			(338	)			(3,519	)
Recoveries			57				2				26				—				2,709				89				2,883
Provision			540				1,647				446				84				(511	)			738				2,944
Ending balance		$	13,418			$	16,826			$	4,646			$	710			$	13,306			$	930			$	49,836
Six months ended June 30, 2023
Beginning balance			12,585				14,412				3,301				608				14,238				269				45,413
Charge-offs			(117	)			(18	)			(102	)			(41	)			(7,629	)			(720	)			(8,627	)
Recoveries			208				4				31				—				5,491				168				5,902
Provision (benefit)			742				2,428				1,416				143				1,206				1,213				7,148
Ending balance		$	13,418			$	16,826			$	4,646			$	710			$	13,306			$	930			$	49,836