XML 27 R14.htm IDEA: XBRL DOCUMENT v3.25.1
Loans and Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2025
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, 2025December 31, 2024
Commercial real estate$1,254,402 $969,514 
Residential mortgage591,488 401,950 
Commercial and industrial220,774 140,906 
Home equity lines of credit119,085 85,685 
Real estate construction127,663 76,773 
Consumer10,526 9,318 
Gross loans2,323,938 1,684,146 
Unearned income(1,729)(1,236)
Total loans, net of unearned income$2,322,209 $1,682,910 

Loans with a fair value of $648.5 million at the Acquisition date were assumed and included an acquisition accounting adjustment of $25.3 million.
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, 2025
Commercial real estate$245 $— $444 $689 $1,253,713 $1,254,402 $— 
Residential mortgage10,968 1,270 2,506 14,744 576,744 591,488 1,987 
Commercial and industrial12 378 144 534 220,240 220,774 — 
Home equity lines of credit999 72 — 1,071 118,014 119,085 — 
Real estate construction735 — — 735 126,928 127,663 — 
Consumer126 22 — 148 10,378 10,526 — 
Gross Loans$13,085 $1,742 $3,094 $17,921 $2,306,017 $2,323,938 $1,987 
(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 — 
Gross Loans$2,376 $1,567 $1,410 $5,353 $1,678,793 $1,684,146 $941 
Nonaccrual and Nonperforming Loans
Loans individually evaluated consist of nonaccrual loans, presented in the following table: 
March 31, 2025December 31, 2024
(In thousands)With a Related AllowanceWithout a Related AllowanceTotalWith a Related AllowanceWithout a Related AllowanceTotal
Commercial real estate$295 $3,745 $4,040 $314 $3,250 $3,564 
Residential mortgage— 1,401 1,401 — — — 
Commercial and industrial2,023 590 2,613 2,081 226 2,307 
Home equity lines of credit— 8 8 — — — 
 Total$2,318 $5,744 $8,062 $2,395 $3,476 $5,871 
During the three months ended March 31, 2025, 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, 2025December 31, 2024
Nonaccrual loans$8,062 $5,871 
Greater than or equal to 90 days past due and accruing1,987 941 
Total nonperforming loans$10,049 $6,812 
Collateral-Dependent Loans
A loan is considered to be collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of loans deemed collateral-dependent, the Corporation elected the practical expedient to estimate expected credit losses based on the collateral’s fair value less cost to sell. In most cases, the Corporation records a partial charge-off to reduce the collateral-dependent loan’s carrying value to the fair value of the collateral less cost to sell. Substantially all of the collateral supporting collateral-dependent loans consists of various types of real estate, including residential properties, commercial properties, such as retail centers, office buildings, and lodging, agriculture land, and vacant land. Changes in the fair value of the collateral for individually evaluated loans are reported as provision for credit losses or a reversal of provision for credit losses in the period of change.
The following table presents the amortized cost basis of individually evaluated loans by type of collateral as of the periods presented:
March 31, 2025December 31, 2024
(In thousands)Business AssetsReal EstateBusiness AssetsReal Estate
Commercial real estate$— $4,040 $— $3,564 
Residential mortgage— 1,401 — — 
Commercial and industrial2,237 376 2,307 — 
Home equity lines of credit— 8 — — 
Total$2,237 $5,825 $2,307 $3,564 

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 $269 thousand at March 31, 2025 and $373 thousand at December 31, 2024 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, or combinations of the above. Therefore, the disclosures related to loan restructurings are only for modifications that directly affect cash flows.

During the three months ended March 31, 2025 and 2024, 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, 2025:

(In thousands)Current30-89 Days Past Due≥ 90 Days
Past Due		Total Past Due
Commercial real estate$2,293 $— $— $— 
Commercial and industrial1,748 — — — 
Total$4,041 $— $— $— 
As of March 31, 2025, 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, 2025
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost Basis
(In thousands)20252024202320222021PriorTotal
Internally Risk Rated:
Commercial real estate
Pass$16,020 $157,604 $182,846 $217,778 $177,509 $444,223 $16,378 $1,212,358 
Special Mention59 2,022 2,846 2,859 6,091 14,916 1,280 30,073 
Substandard— — — 2,277 338 9,311 45 11,971 
Total Commercial real estate$16,079 $159,626 $185,692 $222,914 $183,938 $468,450 $17,703 $1,254,402 
Residential mortgage
Pass$9,326 $31,536 $37,684 $26,423 $40,031 $60,995 $510 $206,505 
Special Mention239 130 209 165 144 3,129 123 4,139 
Substandard— — 236 185 — 67 — 488 
Total Residential Mortgage$9,565 $31,666 $38,129 $26,773 $40,175 $64,191 $633 $211,132 
Commercial and industrial
Pass$2,533 $21,366 $22,067 $30,510 $40,958 $40,128 $50,366 $207,928 
Special Mention125 157 133 187 166 870 5,234 6,872 
Substandard— — 516 843 302 983 3,330 5,974 
Total Commercial and industrial$2,658 $21,523 $22,716 $31,540 $41,426 $41,981 $58,930 $220,774 
Year-to-date gross charge-offs$— $— $— $— $— $14 $— $14 
Home equity lines of credit
Pass$— $— $292 $90 $33 $338 $7,660 $8,413 
Special Mention— — — — 96 — 723 819 
Substandard— — — — — 6 — 6 
Total Home equity lines of credit$— $— $292 $90 $129 $344 $8,383 $9,238 
Real estate construction
Pass$11,454 $30,501 $24,414 $8,230 $1,762 $826 $5,775 $82,962 
Special Mention— — 44 5,004 — 466 46 5,560 
Substandard— — — — — 59 — 59 
Total Real estate construction$11,454 $30,501 $24,458 $13,234 $1,762 $1,351 $5,821 $88,581 
Performance Rated:
Residential mortgage
Performing$6,358 $32,442 $61,561 $91,411 $43,110 $135,324 $6,763 $376,969 
Nonperforming— 200 123 1,568 157 1,339 — 3,387 
Total Residential Mortgage$6,358 $32,642 $61,684 $92,979 $43,267 $136,663 $6,763 $380,356 
Home equity lines of credit
Performing$— $— $17 $33 $— $2,457 $107,332 $109,839 
Nonperforming— — — — — — 8 8 
Total Home equity lines of credit$— $— $17 $33 $— $2,457 $107,340 $109,847 
Real estate construction
Performing$3,504 $32,111 $723 $1,528 $156 $1,060 $— $39,082 
Total Real estate construction$3,504 $32,111 $723 $1,528 $156 $1,060 $— $39,082 
Consumer
Performing$332 $1,796 $1,341 $1,540 $416 $890 $4,211 $10,526 
Total Consumer$332 $1,796 $1,341 $1,540 $416 $890 $4,211 $10,526 
Year-to-date gross charge-offs$— $— $— $5 $— $7 $59 $71 
Total Portfolio loans:
Pass$39,333 $241,007 $267,303 $283,031 $260,293 $546,510 $80,689 $1,718,166 
Special Mention423 2,309 3,232 8,215 6,497 19,381 7,406 47,463 
Substandard— — 752 3,305 640 10,426 3,375 18,498 
Performing10,194 66,349 63,642 94,512 43,682 139,731 118,306 536,416 
Nonperforming— 200 123 1,568 157 1,339 8 3,395 
Total Portfolio loans$49,950 $309,865 $335,052 $390,631 $311,269 $717,387 $209,784 $2,323,938 
Year-to-date gross charge-offs$— $— $— $5 $— $21 $59 $85 
December 31, 2024
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost Basis
(In thousands)20242023202220212020PriorTotal
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 
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		ConsumerTotal
Three Months Ended March 31, 2025    
Beginning balance - January 1, 2025$10,578 $2,976 $1,416 $294 $1,918 $98 $17,280 
Allowance established for acquired PCD loans798 140 194 13 169 150 1,464 
Charge-offs— — (14)— — (71)(85)
Recoveries— — 3 — — 16 19 
Provisions (reversal of)2,173 2,012 629 180 1,051 (77)5,968 
Ending balance -March 31, 2025$13,549 $5,128 $2,228 $487 $3,138 $116 $24,646 
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 (reversal of)230 (76)(103)(83)243 12 223 
Ending balance - March 31, 2024$12,240 $3,227 $1,960 $314 $2,313 $118 $20,172