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LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

12 Months Ended

Dec. 31, 2023

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of Loans


		December 31,			December 31,
(in thousands)		2023			2022
Commercial construction		$	154,048		$	117,577
Commercial real estate owner occupied			310,015			244,814
Commercial real estate non-owner occupied			1,144,566			1,146,674
Tax exempt			43,688			42,879
Commercial and industrial			310,883			297,112
Residential real estate			940,334			954,968
Home equity			87,683			90,865
Consumer other			7,832			7,801
Total loans			2,999,049			2,902,690
Allowance for credit losses			28,142			25,860
Net loans		$	2,970,907		$	2,876,830

Summary of Unamortized Net Costs and Premiums


		December 31,			December 31,
(in thousands)		2023			2022
Net unamortized loan origination costs		$	3,039		$	3,184
Net unamortized fair value discount on acquired loans			(2,891)			(3,506)
Total		$	148		$	(322)

Schedule of Activity in the Allowance for Credit Losses


		At or for the Year Ended December 31, 2023
		Balance at
		Beginning of												Balance at
(in thousands)		Period			Charge Offs			Recoveries			Provision			End of Period
Commercial construction		$	2,579		$	—		$	—		$	1,682		$	4,261
Commercial real estate owner occupied			2,189			—			142			532			2,863
Commercial real estate non-owner occupied			9,341			—			—			102			9,443
Tax exempt			93			—			—			26			119
Commercial and industrial			3,493			(664)			149			281			3,259
Residential real estate			7,274			(8)			31			55			7,352
Home equity			811			(12)			6			(38)			767
Consumer other			80			(289)			19			268			78
Total		$	25,860		$	(973)		$	347		$	2,908		$	28,142


		At or for the Year Ended December 31, 2022
		Balance at
		Beginning of												Balance at
(in thousands)		Period			Charge Offs			Recoveries			Provision			End of Period
Commercial construction		$	2,111		$	—		$	—		$	468		$	2,579
Commercial real estate owner occupied			2,751			—			120			(682)			2,189
Commercial real estate non-owner occupied			5,650			—			—			3,691			9,341
Tax exempt			86			—			—			7			93
Commercial and industrial			5,369			(8)			341			(2,209)			3,493
Residential real estate			5,862			(84)			106			1,390			7,274
Home equity			814			(7)			25			(21)			811
Consumer other			75			(267)			12			260			80
Total		$	22,718		$	(366)		$	604		$	2,904		$	25,860


		At or for the Year Ended December 31, 2021
		Balance at
		Beginning of			Impact of ASC												Balance at
(in thousands)		Period			326			Charge Offs			Recoveries			Provision			End of Period
Commercial construction		$	824		$	1,196		$	—		$	18		$	73		$	2,111
Commercial real estate owner occupied			1,783			708			(403)			290			373			2,751
Commercial real estate non-owner occupied			7,864			(2,008)			—			4			(210)			5,650
Tax exempt			58			40			—			—			(12)			86
Commercial and industrial			3,137			2,996			(59)			77			(782)			5,369
Residential real estate			5,010			1,732			(77)			159			(962)			5,862
Home equity			285			603			(154)			51			29			814
Consumer other			121			(39)			(205)			9			189			75
Total		$	19,082		$	5,228		$	(898)		$	608		$	(1,302)		$	22,718

Schedule of Loans by Risk Rating

The following table presents our loans by year of origination, loan segmentation and risk indicator as of December 31, 2023:



(in thousands)		2023			2022			2021			2020			2019			Prior			Total
Commercial construction
Risk rating:
Pass		$	14,040		$	99,115		$	35,978		$	3,992		$	—		$	923		$	154,048
Special mention			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—
Total		$	14,040		$	99,115		$	35,978		$	3,992		$	—		$	923		$	154,048
Current period gross write-offs			—			—			—			—			—			—			—

Commercial real estate owner occupied
Risk rating:
Pass		$	57,603		$	61,015		$	43,228		$	20,209		$	20,462		$	91,187		$	293,704
Special mention			160			387			7,488			1,596			—			3,066			12,697
Substandard			—			—			—			—			—			3,497			3,497
Doubtful			—			—			—			—			—			117			117
Total		$	57,763		$	61,402		$	50,716		$	21,805		$	20,462		$	97,867		$	310,015
Current period gross write-offs			—			—			—			—			—			—			—

Commercial real estate non-owner occupied
Risk rating:
Pass		$	41,270		$	353,613		$	199,311		$	127,231		$	78,759		$	238,973		$	1,039,157
Special mention			7,809			—			14,134			37,249			15,246			17,108			91,546
Substandard			—			—			—			—			—			13,863			13,863
Doubtful			—			—			—			—			—			—			—
Total		$	49,079		$	353,613		$	213,445		$	164,480		$	94,005		$	269,944		$	1,144,566
Current period gross write-offs			—			—			—			—			—			—			—

Tax exempt
Risk rating:
Pass		$	6,340		$	8,468		$	787		$	208		$	590		$	27,295		$	43,688
Special mention			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—
Total		$	6,340		$	8,468		$	787		$	208		$	590		$	27,295		$	43,688
Current period gross write-offs			—			—			—			—			—			—			—

Commercial and industrial
Risk rating:
Pass		$	80,942		$	69,402		$	22,205		$	38,824		$	14,739		$	77,273		$	303,385
Special mention			364			1,446			—			776			28			3,588			6,202
Substandard			58			94			186			109			95			532			1,074
Doubtful			—			—			—			—			87			135			222
Total		$	81,364		$	70,942		$	22,391		$	39,709		$	14,949		$	81,528		$	310,883
Current period gross write-offs			—			—			—			—			5			659			664


(in thousands)		2023			2022			2021			2020			2019			Prior			Total
Residential real estate
Performing		$	72,395		$	194,109		$	165,434		$	96,016		$	62,648		$	345,823		$	936,425
Nonperforming			—			—			41			—			234			3,634			3,909
Total		$	72,395		$	194,109		$	165,475		$	96,016		$	62,882		$	349,457		$	940,334
Current period gross write-offs			—			—			—			—			—			8			8

Home equity
Performing		$	15,582		$	15,334		$	7,873		$	6,633		$	4,800		$	36,652		$	86,874
Nonperforming			—			—			—			—			—			809			809
Total		$	15,582		$	15,334		$	7,873		$	6,633		$	4,800		$	37,461		$	87,683
Current period gross write-offs			—			—			—			—			—			12			12

Consumer other
Performing		$	4,128		$	1,787		$	696		$	301		$	51		$	864		$	7,827
Nonperforming			—			—			4			1			—			—			5
Total		$	4,128		$	1,787		$	700		$	302		$	51		$	864		$	7,832
Current period gross write-offs			—			52			18			5			—			214			289

Total Loans		$	300,691		$	804,770		$	497,365		$	333,145		$	197,739		$	865,339		$	2,999,049

The following table presents our loans by year of origination, loan segmentation and risk indicator as of December 31, 2022:



(in thousands)		2022			2021			2020			2019			2018			Prior			Total
Commercial construction
Risk rating:
Pass		$	49,722		$	38,837		$	2,865		$	1,011		$	964		$	—		$	93,399
Special mention			—			—			24,178			—			—			—			24,178
Substandard			—			—			—			—			—			—			—
Total		$	49,722		$	38,837		$	27,043		$	1,011		$	964		$	—		$	117,577

Commercial real estate owner occupied
Risk rating:
Pass		$	22,371		$	11,290		$	23,014		$	31,352		$	46,398		$	103,295		$	237,720
Special mention			—			—			243			666			173			1,870			2,952
Substandard			—			—			—			—			77			3,924			4,001
Doubtful			—			—			—			—			—			141			141
Total		$	22,371		$	11,290		$	23,257		$	32,018		$	46,648		$	109,230		$	244,814

Commercial real estate non-owner occupied
Risk rating:
Pass		$	370,856		$	228,414		$	145,096		$	88,111		$	35,213		$	238,395		$	1,106,085
Special mention			—			21,390			—			127			911			16,612			39,040
Substandard			—			—			—			—			—			1,404			1,404
Doubtful			—			—			—			—			—			145			145
Total		$	370,856		$	249,804		$	145,096		$	88,238		$	36,124		$	256,556		$	1,146,674

Tax exempt
Risk rating:
Pass		$	8,686		$	1,020		$	252		$	772		$	13,231		$	18,918		$	42,879
Special mention			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—
Total		$	8,686		$	1,020		$	252		$	772		$	13,231		$	18,918		$	42,879

Commercial and industrial
Risk rating:
Pass		$	83,151		$	26,948		$	62,835		$	27,491		$	9,511		$	81,316		$	291,252
Special mention			1,450			—			53			803			201			619			3,126
Substandard			—			113			111			65			299			2,106			2,694
Doubtful			—			—			—			—			—			40			40
Total		$	84,601		$	27,061		$	62,999		$	28,359		$	10,011		$	84,081		$	297,112


(in thousands)		2022			2021			2020			2019			2018			Prior			Total
Residential real estate
Performing		$	195,320		$	177,480		$	111,021		$	69,170		$	47,797		$	349,795		$	950,583
Nonperforming			—			45			—			49			641			3,650			4,385
Total		$	195,320		$	177,525		$	111,021		$	69,219		$	48,438		$	353,445		$	954,968

Home equity
Performing		$	17,107		$	10,638		$	8,139		$	6,830		$	6,997		$	40,191		$	89,902
Nonperforming			—			—			—			—			—			963			963
Total		$	17,107		$	10,638		$	8,139		$	6,830		$	6,997		$	41,154		$	90,865

Consumer other
Performing		$	4,321		$	1,341		$	863		$	265		$	64		$	942		$	7,796
Nonperforming			—			—			5			—			—			—			5
Total		$	4,321		$	1,341		$	868		$	265		$	64		$	942		$	7,801

Total Loans		$	752,984		$	517,516		$	378,675		$	226,712		$	162,477		$	864,326		$	2,902,690

Summary of Past Due Loans


		December 31, 2023
(in thousands)		30-59			60-89			90+			Total Past Due			Current			Total Loans
Commercial construction		$	—		$	—		$	—		$	—		$	154,048		$	154,048
Commercial real estate owner occupied			—			—			—			—			310,015			310,015
Commercial real estate non-owner occupied			—			—			103			103			1,144,463			1,144,566
Tax exempt			—			—			—			—			43,688			43,688
Commercial and industrial			465			59			330			854			310,029			310,883
Residential real estate			1,520			627			1,999			4,146			936,188			940,334
Home equity			600			—			337			937			86,746			87,683
Consumer other			10			2			—			12			7,820			7,832
Total		$	2,595		$	688		$	2,769		$	6,052		$	2,992,997		$	2,999,049


		December 31, 2022
(in thousands)		30-59			60-89			90+			Total Past Due			Current			Total Loans
Commercial construction		$	—		$	—		$	—		$	—		$	117,577		$	117,577
Commercial real estate owner occupied			385			—			—			385			244,429			244,814
Commercial real estate non-owner occupied			45			145			139			329			1,146,345			1,146,674
Tax exempt			—			—			—			—			42,879			42,879
Commercial and industrial			169			—			9			178			296,934			297,112
Residential real estate			803			348			2,029			3,180			951,788			954,968
Home equity			216			160			246			622			90,243			90,865
Consumer other			41			8			—			49			7,752			7,801
Total		$	1,659		$	661		$	2,423		$	4,743		$	2,897,947		$	2,902,690

Summary of Non-Accrual Loans


		December 31, 2023
					Nonaccrual With No			90+ Days Past
(in thousands)		Nonaccrual			Related Allowance			Due and Accruing
Commercial construction		$	—		$	—		$	—
Commercial real estate owner occupied			103			44			—
Commercial real estate non-owner occupied			340			224			—
Tax exempt			—			—			—
Commercial and industrial			363			6			—
Residential real estate			3,908			1,131			118
Home equity			809			1			22
Consumer other			5			—			—
Total		$	5,528		$	1,406		$	140


		December 31, 2022
					Nonaccrual With No			90+ Days Past
(in thousands)		Nonaccrual			Related Allowance			Due and Accruing
Commercial construction		$	—		$	—		$	—
Commercial real estate owner occupied			439			360			—
Commercial real estate non-owner occupied			550			411			—
Tax exempt			—			—			—
Commercial and industrial			207			145			—
Residential real estate			4,385			1,361			202
Home equity			963			57			14
Consumer other			5			—			—
Total		$	6,549		$	2,334		$	216

Schedule of amortized cost basis of collateral-dependent loans


		December 31, 2023						December 31, 2022
(in thousands)		Real Estate			Other			Real Estate			Other
Commercial construction		$	—		$	—		$	—		$	—
Commercial real estate owner occupied			104			—			439			—
Commercial real estate non-owner occupied			340			—			550			—
Tax exempt			—			—			—			—
Commercial and industrial			229			134			91			116
Residential real estate			3,908			—			4,385			—
Home equity			808			—			963			—
Consumer other			5			—			5			—
Total		$	5,394		$	134		$	6,433		$	116

Schedule of amortized cost basis of of loans experiencing financial difficulty and modification


(in thousands)		Principal Forgiveness			Payment Delay			Term Extension			Interest Rate Reduction			Combination Interest Rate Reduction and Term Extension			% of Total Class of Loans
Twelve Months Ended December 31, 2023
Commercial construction		$	—		$	—		$	—		$	—		$	—		—	%
Commercial real estate owner occupied			—			—			—			—			—		—
Commercial real estate non-owner occupied			—			—			—			—			—		—
Tax exempt			—			—			—			—			—		—
Commercial and industrial			—			65			184			—			—		0.08
Residential real estate			—			—			—			99			—		0.01
Home equity			—			—			—			—			—		—
Consumer other			—			—			—			—			—		—
Total		$	—		$	65		$	184		$	99		$	—		0.01	%

Schedule of Financial Effect Loan Modifications


(in thousands)		Weighted-Average Months of Payment Delay			Weighted-Average Months of Term Extension				Weighted-Average Interest Rate Reduction
Twelve Months Ended December 31, 2023
Commercial construction			—			—			—	%
Commercial real estate owner occupied			—			—			—
Commercial real estate non-owner occupied			—			—			—
Tax exempt			—			—			—
Commercial and industrial			3.00			13.45			—
Residential real estate			—			—			1.38
Home equity			—			—			—
Consumer other			—			—			—
Total			3.00			13.45			1.38	%

Schedule of Loans to Related Parties


(in thousands)		2023			2022
Beginning balance		$	4,763		$	3,379
Changes in composition⁽¹⁾			—			112
New loans			—			1,576
Less: repayments			(718)			(304)
Ending balance		$	4,045		$	4,763

(1)	Adjustments to reflect changes in status of directors and officers for each year presented.

Schedule of Servicing Rights Activity


		At or for the Twelve Months Ended
		December 31,
(in thousands)		2023			2022
Balance at beginning of year		$	3,383		$	3,673
Additions			338			421
Amortization			(560)			(711)
Balance at end of year		$	3,161		$	3,383

Unfunded Loan Commitment

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of Activity in the Allowance for Credit Losses


		At or for the Years Ended December 31,
(in thousands)		2023			2022			2021
Beginning Balance		$	3,910		$	2,152		$	359
Impact of ASC 326			—			—			1,616
Provision for credit losses			(85)			1,758			177
Ending Balance		$	3,825		$	3,910		$	2,152