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Loans and Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2024
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Loans and Allowance for Credit Losses Loans and Allowance for Credit Losses
 
The following table presents the composition of the loan portfolio:
 
(In thousands)March 31, 2024December 31, 2023
Commercial real estate$930,109 $898,709 
Residential mortgage391,864 394,189 
Commercial and industrial157,085 152,344 
Home equity lines of credit87,475 90,163 
Real estate construction90,331 84,341 
Consumer9,789 9,954 
Gross loans1,666,653 1,629,700 
Unearned income(1,673)(1,712)
Total loans, net of unearned income$1,664,980 $1,627,988 
One of the factors used to monitor the performance and credit quality of the loan portfolio is to analyze the age of the loans receivable as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the past due status:
(In thousands)30–59 Days Past Due60–89 Days
Past Due		≥ 90 Days
Past Due		Total Past
Due		CurrentTotal Loans
Receivable		Loans
Receivable
≥ 90 Days
and
Accruing
March 31, 2024
Commercial real estate$1,927 $— $347 $2,274 $927,835 $930,109 $32 
Residential mortgage1,704 — 711 2,415 389,449 391,864 535 
Commercial and industrial52 — 158 210 156,875 157,085 — 
Home equity lines of credit257 23 652 932 86,543 87,475 652 
Real estate construction97 12 — 109 90,222 90,331 — 
Consumer— — — — 9,789 9,789 — 
Gross Loans$4,037 $35 $1,868 $5,940 $1,660,713 $1,666,653 $1,219 

(In thousands)30–59 Days Past Due60–89 Days
Past Due		≥ 90 Days
Past Due		Total Past
Due		CurrentTotal Loans
Receivable		Loans
Receivable
≥ 90 Days
and
Accruing
December 31, 2023
Commercial real estate$150 $347 $— $497 $898,212 $898,709 $— 
Residential mortgage1,293 388 849 2,530 391,659 394,189 505 
Commercial and industrial50 — 159 209 152,135 152,344 — 
Home equity lines of credit414 — 654 1,068 89,095 90,163 654 
Real estate construction12 — — 12 84,329 84,341 — 
Consumer8 — 3 11 9,943 9,954 3 
Gross Loans$1,927 $735 $1,665 $4,327 $1,625,373 $1,629,700 $1,162 

Nonaccrual and Nonperforming Loans

Loans individually evaluated consist of nonaccrual loans, presented in the following table: 

(In thousands)With a Related AllowanceWithout a Related AllowanceTotal
March 31, 2024
Commercial real estate$315 $1,107 $1,422 
Residential mortgage— 176 176 
Commercial and industrial937 — 937 
Home equity lines of credit— 181 181 
 $1,252 $1,464 $2,716 
December 31, 2023
Commercial real estate$315 $1,164 $1,479 
Residential mortgage— 343 343 
Commercial and industrial1,004 — 1,004 
Home equity lines of credit— 185 185 
$1,319 $1,692 $3,011 
During the three months ended March 31, 2024, no material amount of interest income was recognized on nonaccrual loans subsequent to their classification as nonaccrual.

Total nonperforming loans are as follows:
(In thousands)March 31, 2024December 31, 2023
Nonaccrual loans$2,716 $3,011 
Greater than or equal to 90 days past due and still accruing1,219 1,162 
Total nonperforming loans$3,935 $4,173 
Collateral-Dependent Loans
A loan is considered to be collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of loans deemed collateral-dependent, the Corporation elected the practical expedient to estimate expected credit losses based on the collateral’s fair value less cost to sell. In most cases, the Corporation records a partial charge-off to reduce the collateral-dependent loan’s carrying value to the collateral’s fair value less cost to sell. Substantially all of the collateral supporting collateral-dependent loans consists of various types of real estate, including residential properties, commercial properties, such as retail centers, office buildings, and lodging, agriculture land, and vacant land.
Changes in the fair value of the collateral for individually evaluated loans are reported as provision for credit losses or a reversal of provision for credit losses in the period of change. The following table presents the amortized cost basis of individually evaluated loans as of the periods presented:
Type of Collateral
(In thousands)Business AssetsReal Estate
March 31, 2024
Commercial real estate$— $1,422 
Residential mortgage— 176 
Commercial and industrial937 — 
Home equity lines of credit— 181 
Total$937 $1,779 
December 31, 2023
Commercial real estate$— $1,479 
Residential mortgage— 343 
Commercial and industrial1,004 — 
Home equity lines of credit— 185 
Total$1,004 $2,007 

Consumer residential mortgages and home equity lines of credit which are well secured by residential real estate properties and are in the process of collection are not considered nonaccrual, however, formal foreclosure proceedings are in process. These loans totaled $1.3 million at both March 31, 2024 and December 31, 2023 and are included in nonperforming loans if they are greater than or equal to 90 days past due.
Loan Modifications

The Corporation evaluates all loan restructurings according to the accounting guidance for loan modifications to determine if the restructuring results in a new loan or a continuation of the existing loan. Loan modifications to borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows include situations where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and combinations of the above. Therefore, the disclosures related to loan restructurings are only for modifications that directly affect cash flows.

During both the three months ended March 31, 2024 and 2023, the Corporation did not modify any loans nor were there any commitments to lend any additional funds on existing modified loans.

The following presents the performance of loans modified in the previous twelve months as of March 31, 2024:

(In thousands)Current30-89 Days Past Due≥ 90 Days
Past Due		Total Past Due
Commercial and industrial$292 $— $— $— 

As of March 31, 2024, the Corporation had no loans that defaulted during the period that had been modified preceding the payment default when the borrower was experiencing financial difficulty at the time of modification. For purposes of this disclosure, a default occurs when, within 12 months of the original modification, either a full or partial charge-off occurs or the loan becomes 90 days or more past due.

Allowance for Credit Losses

The Corporation maintains an ACL at a level determined to be adequate to absorb expected credit losses associated with the Corporation’s financial instruments over the life of those instruments as of the balance sheet date. The ACL consists of loans evaluated collectively and individually for expected credit losses. The Corporation considers the performance of the loan portfolio and its impact on the ACL and does not assign internal risk ratings to smaller balance, homogeneous loans such as certain residential mortgage, home equity lines of credit, construction loans to individuals secured by residential real estate and consumer loans. For these loans, the Corporation evaluates credit quality based on the aging status of the loan and designates as performing and nonperforming.
The following summarizes designated internal risk categories by portfolio segment for loans assigned a risk rating and those evaluated based on the performance status:
March 31, 2024
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost Basis
(In thousands)20242023202220212020PriorTotal
Internally Risk Rated:
Commercial real estate
Pass$45,462 $135,864 $154,328 $129,033 $58,625 $343,722 $13,858 $880,892 
Special Mention— 1,960 5,082 6,422 2,220 23,578 1,530 40,792 
Substandard— — — — 1,518 6,907 — 8,425 
Total Commercial real estate$45,462 $137,824 $159,410 $135,455 $62,363 $374,207 $15,388 $930,109 
Residential mortgage
Pass$4,161 $39,225 $25,230 $40,049 $14,573 $35,849 $339 $159,426 
Special Mention— 584 82 587 389 3,211 78 4,931 
Substandard— — — — — 245 — 245 
Total Residential Mortgage$4,161 $39,809 $25,312 $40,636 $14,962 $39,305 $417 $164,602 
Commercial and industrial
Pass$2,286 $11,844 $23,167 $33,374 $15,172 $30,579 $31,721 $148,143 
Special Mention37 167 297 268 480 547 1,812 3,608 
Substandard— 432 109 472 16 1,463 2,842 5,334 
Total Commercial and industrial$2,323 $12,443 $23,573 $34,114 $15,668 $32,589 $36,375 $157,085 
Home equity lines of credit
Pass$— $299 $97 $— $— $128 $5,832 $6,356 
Special Mention— — — — — — 742 742 
Substandard— — — — — 355 — 355 
Total Home equity lines of credit$— $299 $97 $— $— $483 $6,574 $7,453 
Real estate construction
Pass$1,310 $25,096 $43,661 $2,353 $329 $1,155 $6,103 $80,007 
Special Mention— — 459 — — 706 — 1,165 
Substandard— — — — — 67 — 67 
Total Real estate construction$1,310 $25,096 $44,120 $2,353 $329 $1,928 $6,103 $81,239 
Performance Rated:
Residential mortgage
Performing$2,376 $36,651 $44,113 $14,262 $15,728 $113,526 $71 $226,727 
Nonperforming— — — — — 535 — 535 
Total Residential Mortgage$2,376 $36,651 $44,113 $14,262 $15,728 $114,061 $71 $227,262 
Home equity lines of credit
Performing$— $22 $37 $— $13 $3,746 $75,552 $79,370 
Nonperforming— — — — — 1 651 652 
Total Home equity lines of credit$— $22 $37 $— $13 $3,747 $76,203 $80,022 
Consumer
Performing$512 $2,085 $2,471 $677 $460 $1,180 $2,404 $9,789 
Total Consumer$512 $2,085 $2,471 $677 $460 $1,180 $2,404 $9,789 
Year-to-date gross charge-offs$— $— $5 $— $— $— $55 $60 
Real estate construction
Performing$1,561 $5,400 $748 $172 $204 $1,005 $2 $9,092 
Total Real estate construction$1,561 $5,400 $748 $172 $204 $1,005 $2 $9,092 
Total Portfolio loans:
Pass$53,219 $212,328 $246,483 $204,809 $88,699 $411,433 $57,853 $1,274,824 
Special Mention37 2,711 5,920 7,277 3,089 28,042 4,162 51,238 
Substandard— 432 109 472 1,534 9,037 2,842 14,426 
Performing4,449 44,158 47,369 15,111 16,405 119,457 78,029 324,978 
Nonperforming— — — — — 536 651 1,187 
Total Portfolio loans$57,705 $259,629 $299,881 $227,669 $109,727 $568,505 $143,537 $1,666,653 
Year-to-date gross charge-offs$— $— $5 $— $— $— $55 $60 
December 31, 2023
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost Basis
(In thousands)20232022202120202019PriorTotal
Internally Risk Rated:
Commercial real estate
Pass$136,158 $152,767 $130,994 $60,918 $65,856 $287,026 $13,636 $847,355 
Special Mention1,927 6,385 5,920 1,904 8,222 16,244 1,994 42,596 
Substandard— — — 1,530 704 6,524 — 8,758 
Total Commercial real estate$138,085 $159,152 $136,914 $64,352 $74,782 $309,794 $15,630 $898,709 
Residential mortgage
Pass$39,146 $27,612 $41,031 $14,758 $10,492 $27,274 $402 $160,715 
Special Mention588 82 593 397 826 2,457 62 5,005 
Substandard— — — — — 218 — 218 
Total Residential Mortgage$39,734 $27,694 $41,624 $15,155 $11,318 $29,949 $464 $165,938 
Commercial and industrial
Pass$12,319 $24,259 $34,830 $15,614 $13,922 $17,780 $25,147 $143,871 
Special Mention128 303 290 529 140 459 2,014 3,863 
Substandard7 135 499 91 9 1,597 2,272 4,610 
Total Commercial and industrial$12,454 $24,697 $35,619 $16,234 $14,071 $19,836 $29,433 $152,344 
Year-to-date gross charge-offs$— $— $— $— $— $110 $— $110 
Home equity lines of credit
Pass$300 $99 $— $— $— $131 $5,235 $5,765 
Special Mention— — — — — — 727 727 
Substandard— — — — — 362 — 362 
Total Home equity lines of credit$300 $99 $— $— $— $493 $5,962 $6,854 
Real estate construction
Pass$19,766 $39,758 $3,953 $1,160 $— $2,604 $8,003 $75,244 
Special Mention— 465 — 92 — 725 — 1,282 
Substandard— — — — — 69 — 69 
Total Real estate construction$19,766 $40,223 $3,953 $1,252 $— $3,398 $8,003 $76,595 
Performance Rated:
Residential mortgage
Performing$33,884 $45,221 $14,878 $16,184 $9,059 $108,021 $156 $227,403 
Nonperforming— — — — — 848 — 848 
Total Residential Mortgage$33,884 $45,221 $14,878 $16,184 $9,059 $108,869 $156 $228,251 
Home equity lines of credit
Performing$23 $38 $— $13 $94 $4,742 $77,745 $82,655 
Nonperforming— — — — — 92 562 654 
Total Home equity lines of credit$23 $38 $— $13 $94 $4,834 $78,307 $83,309 
Consumer
Performing$2,351 $2,685 $778 $522 $271 $1,085 $2,259 $9,951 
Nonperforming— — — — — — 3 3 
Total Consumer$2,351 $2,685 $778 $522 $271 $1,085 $2,262 $9,954 
Year-to-date gross charge-offs$48 $83 $42 $55 $23 $78 $67 $396 
Real estate construction
Performing$5,571 $753 $175 $210 $170 $867 $— $7,746 
Total Real estate construction$5,571 $753 $175 $210 $170 $867 $— $7,746 
Total Portfolio loans
Pass$207,689 $244,495 $210,808 $92,450 $90,270 $334,815 $52,423 $1,232,950 
Special Mention2,643 7,235 6,803 2,922 9,188 19,885 4,797 53,473 
Substandard7 135 499 1,621 713 8,770 2,272 14,017 
Performing41,829 48,697 15,831 16,929 9,594 114,715 80,160 327,755 
Nonperforming— — — — — 940 565 1,505 
Total Portfolio loans$252,168 $300,562 $233,941 $113,922 $109,765 $479,125 $140,217 $1,629,700 
Year-to-date gross charge-offs$48 $83 $42 $55 $23 $188 $67 $506 
The following table presents the activity in the ACL by loan portfolio segment:
(In thousands)Commercial
Real Estate		Residential
Mortgage		Commercial
and
Industrial		Home Equity
Lines of
Credit		Real Estate
Construction		ConsumerUnallocatedTotal
Three Months Ended March 31, 2024     
Beginning balance - January 1, 2024$12,010 $3,303 $2,048 $397 $2,070 $141 $— $19,969 
Charge-offs— — — — — (60)— (60)
Recoveries— — 15 — — 25 — 40 
Provisions (credits)230 (76)(103)(83)243 12 — 223 
Ending balance - March 31, 2024$12,240 $3,227 $1,960 $314 $2,313 $118 $— $20,172 
Three Months Ended March 31, 2023     
Beginning balance - January 1, 2023$10,016 $3,029 $2,848 $347 $1,000 $376 $245 $17,861 
Impact of CECL adoption1,106 297 (762)17 1,347 (142)(245)1,618 
Charge-offs— — (29)— — (88)— (117)
Recoveries— — 1 — — 25 — 26 
Provisions(90)40 47 15 118 (33)— 97 
Ending balance - March 31, 2023$11,032 $3,366 $2,105 $379 $2,465 $138 $— $19,485