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LOANS AND ALLOWANCE FOR CREDIT LOSSES
 12 Months Ended
Dec. 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)December 31, 2024December 31, 2023
Commercial real estate$969,514 $898,709 
Residential mortgage401,950 394,189 
Commercial and industrial140,906 152,344 
Home equity lines of credit85,685 90,163 
Real estate construction76,773 84,341 
Consumer9,318 9,954 
Gross loans1,684,146 1,629,700 
Unearned income(1,236)(1,712)
Total loans, net of unearned income$1,682,910 $1,627,988 
The Bank has granted loans to certain of its executive officers, directors and their related interests. These loans were made on substantially the same basis, including interest rates and collateral as those prevailing for comparable transactions with other borrowers at the same time. None of these loans were past due, in nonaccrual status, or restructured at December 31, 2024. The following table is a summary of the activity for these related-party loans:
(In thousands)2024
Balance at January 1$5,307 
Repayments548 
Balance at December 31$4,759 
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
December 31, 2024
Commercial real estate$763 $527 $314 $1,604 $967,910 $969,514 $— 
Residential mortgage953 987 850 2,790 399,160 401,950 850 
Commercial and industrial437 24 155 616 140,290 140,906 — 
Home equity lines of credit161 — 91 252 85,433 85,685 91 
Real estate construction15 11 — 26 76,747 76,773 — 
Consumer47 18 — 65 9,253 9,318 — 
Total Loans$2,376 $1,567 $1,410 $5,353 $1,678,793 $1,684,146 $941 
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 
Total 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: 
December 31, 2024December 31, 2023
(In thousands)With a Related AllowanceWithout a Related AllowanceTotalWith a Related AllowanceWithout a Related AllowanceTotal
Commercial real estate$314 $3,250 $3,564 $315 $1,164 $1,479 
Residential mortgage— — — — 343 343 
Commercial and industrial2,081 226 2,307 1,004 — 1,004 
Home equity lines of credit— — — — 185 185 
 Total$2,395 $3,476 $5,871 $1,319 $1,692 $3,011 
No additional funds are committed to be advanced in connection with individually evaluated loans. If interest on all nonaccrual loans had been accrued at original contract rates, interest income would have increased by $299 thousand in 2024, $302 thousand in 2023, and $410 thousand in 2022.
Total nonperforming loans at December 31 are as follows:
(In thousands)20242023
Nonaccrual loans$5,871 $3,011 
Greater than or equal to 90 days past due and accruing941 1,162 
Total nonperforming loans$6,812 $4,173 
Collateral-Dependent Loans
The amortized cost basis of individually evaluated loans by type of collateral as of December 31:
20242023
(In thousands)Business AssetsReal EstateBusiness AssetsReal Estate
Commercial real estate$— $3,564 $— $1,479 
Residential mortgage— — — 343 
Commercial and industrial2,307 — 1,004 — 
Home equity lines of credit— — — 185 
Total$2,307 $3,564 $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 $373 thousand and $1.3 million at December 31, 2024 and 2023, respectively, 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.
The following tables present the amortized cost basis of loans that were both experiencing financial difficulty and modified during the years ended December 31, 2024 and 2023, by class and by type of modification. 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 is also presented below:
(In thousands)Combination Payment Deferral and Interest-Only PaymentsPercent of Class of Financing Receivable
2024
Commercial real estate$2,293 0.2 %
Commercial and industrial1,748 1.2 %
Total$4,041 
The loan modifications made during 2024 did not result in term extensions.
(In thousands)Term ExtensionPercent of Class of Financing ReceivableFinancial Effect
2023
Commercial and industrial$549 0.4 %
Added a weighted-average 4.95 years to the life of loans, which decreased the borrower’s monthly payment amounts.

The following presents the performance of loans modified in the previous twelve months as of December 31, 2024:
(In thousands)Current30-89 Days Past Due≥ 90 Days Past DueTotal Past Due
Commercial real estate$2,293 $— $— $— 
Commercial and industrial1,748 — — — 
Total$4,041 $— $— $— 
As of December 31, 2024, the Corporation had no commitments to lend any additional funds on modified loans. During the
years ended December 31, 2024 and 2023, there were no loans modified due to financial difficulty that defaulted subsequent to the 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:
December 31, 2024
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisTotal
(In thousands)20242023202220212020Prior
Internally Risk Rated:
Commercial real estate
Pass$120,989 $135,995 $164,167 $121,092 $55,408 $312,999 $17,276 $927,926 
Special Mention1,887 3,826 2,880 6,639 2,177 11,613 1,303 30,325 
Substandard— — 2,332 342 1,485 7,059 45 11,263 
Total Commercial real estate$122,876 $139,821 $169,379 $128,073 $59,070 $331,671 $18,624 $969,514 
Residential mortgage
Pass$27,887 $35,566 $23,095 $38,848 $13,446 $31,784 $466 $171,092 
Special Mention130 1,692 167 146 366 3,246 115 5,862 
Substandard— 237 188 — — 68 — 493 
Total Residential Mortgage$28,017 $37,495 $23,450 $38,994 $13,812 $35,098 $581 $177,447 
Commercial and industrial
Pass$10,000 $10,067 $19,584 $29,673 $13,162 $18,976 $30,015 $131,477 
Special Mention165 109 246 192 78 459 2,554 3,803 
Substandard— 526 468 335 2 979 3,316 5,626 
Total Commercial and industrial$10,165 $10,702 $20,298 $30,200 $13,242 $20,414 $35,885 $140,906 
Year-to-date gross charge-offs$— $38 $— $— $— $100 $— $138 
Home equity lines of credit
Pass$— $294 $92 $— $— $501 $5,729 $6,616 
Special Mention— — — — — — 696 696 
Substandard— — — — — 6 — 6 
Total Home equity lines of credit$— $294 $92 $— $— $507 $6,425 $7,318 
Real estate construction
Pass$21,227 $24,463 $7,719 $1,209 $298 $1,060 $6,086 $62,062 
Special Mention— 168 5,100 — — 667 45 5,980 
Substandard— — — — — 62 — 62 
Total Real estate construction$21,227 $24,631 $12,819 $1,209 $298 $1,789 $6,131 $68,104 
Performance Rated:
Residential mortgage
Performing$14,786 $41,275 $39,943 $13,523 $13,876 $100,601 $72 $224,076 
Nonperforming— — — — — 427 — 427 
Total Residential Mortgage$14,786 $41,275 $39,943 $13,523 $13,876 $101,028 $72 $224,503 
Home equity lines of credit
Performing$— $18 $34 $— $12 $2,591 $75,621 $78,276 
Nonperforming— — — — — — 91 91 
Total Home equity lines of credit$— $18 $34 $— $12 $2,591 $75,712 $78,367 
Real estate construction
Performing$6,486 $222 $725 $160 $188 $888 $— $8,669 
Total Real estate construction$6,486 $222 $725 $160 $188 $888 $— $8,669 
Consumer
Performing$2,000 $1,521 $1,694 $465 $276 $778 $2,584 $9,318 
Total Consumer$2,000 $1,521 $1,694 $465 $276 $778 $2,584 $9,318 
Year-to-date gross charge-offs$— $4 $9 $— $1 $7 $197 $218 
Total Portfolio loans
Pass$180,103 $206,385 $214,657 $190,822 $82,314 $365,320 $59,572 $1,299,173 
Special Mention2,182 5,795 8,393 6,977 2,621 15,985 4,713 46,666 
Substandard— 763 2,988 677 1,487 8,174 3,361 17,450 
Performing23,272 43,036 42,396 14,148 14,352 104,858 78,277 320,339 
Nonperforming— — — — — 427 91 518 
Total Portfolio loans$205,557 $255,979 $268,434 $212,624 $100,774 $494,764 $146,014 $1,684,146 
Year-to-date gross charge-offs$— $42 $9 $— $1 $107 $197 $356 
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 
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 
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 
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 
In 2024, the Corporation revised estimates utilized as input assumptions within the CECL model calculation. These estimates, which were based on more current information available during 2024, drive input assumptions which are used in the determination of the Corporation’s allowance for credit losses and the reserve for unfunded commitments. These updated estimates were the primary drivers for a $2.4 million and $326 thousand reversal of the provisions for credit losses and for unfunded commitments, respectively, for the year ended December 31, 2024.
The following table presents the ACL by loan portfolio segment for the years ended 2024, 2023 and 2022:
(In thousands)Commercial
Real Estate		Residential MortgageCommercial and IndustrialHome Equity Lines of CreditReal Estate ConstructionConsumerUnallocatedTotal
Beginning balance - January 1, 2024$12,010 $3,303 $2,048 $397 $2,070 $141 $— $19,969 
Charge-offs— — (138)— — (218)— (356)
Recoveries— — 26 — — 78 — 104 
(Reversal of) provisions(1,432)(327)(520)(103)(152)97 — (2,437)
Ending balance - December 31, 2024$10,578 $2,976 $1,416 $294 $1,918 $98 $— $17,280 
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— — (110)— — (396)— (506)
Recoveries— — 64 — — 72 — 136 
Provisions (reversal of)888 (23)8 33 (277)231 — 860 
Ending balance - December 31, 2023$12,010 $3,303 $2,048 $397 $2,070 $141 $— $19,969 
Beginning balance - January 1, 2022$10,716 $3,235 $3,176 $501 $616 $408 $381 $19,033 
Charge-offs(831)(3)(238)(33)— (181)— (1,286)
Recoveries— 5 58 22 — 29 — 114 
Provisions (reversal of)131 (208)(148)(143)384 120 (136)— 
Ending balance - December 31, 2022$10,016 $3,029 $2,848 $347 $1,000 $376 $245 $17,861 
The ACL may include qualitative adjustments intended to capture the impact of uncertainties not reflected in the quantitative models. In determining qualitative adjustments, management considers current conditions, reasonable and supportable forecasts of future economic conditions and prepayment experience.