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Loans and Allowance for Credit Losses on Loans (Tables)
 6 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
Schedule of Loans by Class
The following table presents the amortized cost of loans by portfolio class as of June 30, 2024 and December 31, 2023.

(in thousands)June 30, 2024December 31, 2023
Commercial and industrial$169,247 $153,750 
Real estate:
  Commercial owner-occupied325,091 333,181 
  Commercial non-owner occupied1,267,841 1,219,385 
  Construction51,239 99,164 
  Home equity88,045 82,087 
  Other residential114,054 118,508 
Installment and other consumer loans66,882 67,645 
Total loans, at amortized cost 1
2,082,399 2,073,720 
Allowance for credit losses on loans(30,675)(25,172)
Total loans, net of allowance for credit losses on loans$2,051,724 $2,048,548 
1 Amortized cost includes net deferred loan origination costs of $2.5 million and $2.7 million at June 30, 2024 and December 31, 2023, respectively. Amounts are also net of unrecognized purchase discounts of $1.9 million and $2.0 million at June 30, 2024 and December 31, 2023, respectively. Amortized cost excludes accrued interest, which totaled $7.0 million and $6.6 million at June 30, 2024 and December 31, 2023, respectively, and is included in interest receivable and other assets in the consolidated statements of condition.
Schedule of Loans by Risk Grade and Origination Year
The following tables present the loan portfolio by loan portfolio class, origination/renewal year and internal risk rating as of June 30, 2024 and December 31, 2023. The current year vintage table reflects gross charge-offs by loan portfolio class and year of origination. Generally, existing term loans that were re-underwritten are reflected in the table in the year of renewal. Lines of credit that have a conversion feature at the time of origination, such as construction to perm loans, are presented by year of origination.
(in thousands)Term Loans - Amortized Cost by Origination YearRevolving Loans Amortized Cost
June 30, 202420242023202220212020PriorTotal
Commercial and industrial:
Pass and Watch$6,503 $22,391 $8,727 $1,709 $3,000 $31,361 $84,858 $158,549 
Special Mention252 — — — — 278 888 1,418 
Substandard— — — — — 1,796 7,484 9,280 
Total commercial and industrial$6,755 $22,391 $8,727 $1,709 $3,000 $33,435 $93,230 $169,247 
Gross current period charge-offs$— $— $— $— $— $— $(33)$(33)
Commercial real estate, owner-occupied:
Pass and Watch$8,604 $13,280 $45,593 $49,128 $34,958 $142,291 $10 $293,864 
Special Mention— 383 — 15,347 812 9,891 — 26,433 
Substandard— — 2,171 — — 2,623 — 4,794 
Total commercial real estate, owner-occupied$8,604 $13,663 $47,764 $64,475 $35,770 $154,805 $10 $325,091 
Commercial real estate, non-owner occupied:
Pass and Watch$59,868 $71,310 $170,245 $200,067 $182,488 $485,938 $8,801 $1,178,717 
Special Mention— — 2,763 2,118 7,288 38,238 — 50,407 
Substandard— 872 — 2,192 — 35,653 — 38,717 
Total commercial real estate, non-owner occupied$59,868 $72,182 $173,008 $204,377 $189,776 $559,829 $8,801 $1,267,841 
(in thousands)Term Loans - Amortized Cost by Origination YearRevolving Loans Amortized Cost
June 30, 202420242023202220212020PriorTotal
Construction:
Pass and Watch$12,255 $2,035 $16,167 $— $— $— $— $30,457 
Special Mention7,962 12,820 — — — — — 20,782 
Total construction$20,217 $14,855 $16,167 $— $— $— $— $51,239 
Home equity:
Pass and Watch$— $— $— $— $— $925 $85,666 $86,591 
Substandard79 — — — — 442 933 1,454 
Total home equity$79 $— $— $— $— $1,367 $86,599 $88,045 
Other residential:
Pass and Watch$1,594 $17,455 $19,901 $13,195 $25,285 $36,624 $— $114,054 
Total other residential$1,594 $17,455 $19,901 $13,195 $25,285 $36,624 $— $114,054 
Installment and other consumer:
Pass and Watch$8,506 $18,767 $12,485 $8,739 $3,652 $12,811 $1,483 $66,443 
Substandard— — — 439 — — — 439 
Total installment and other consumer$8,506 $18,767 $12,485 $9,178 $3,652 $12,811 $1,483 $66,882 
Gross current period charge-offs$— $(14)$— $(3)$— $— $(1)$(18)
Total loans:
Pass and Watch$97,330 $145,238 $273,118 $272,838 $249,383 $709,950 $180,818 $1,928,675 
Total Special Mention$8,214 $13,203 $2,763 $17,465 $8,100 $48,407 $888 $99,040 
Total Substandard$79 $872 $2,171 $2,631 $— $40,514 $8,417 $54,684 
Totals$105,623 $159,313 $278,052 $292,934 $257,483 $798,871 $190,123 $2,082,399 
Total gross current period charge-offs$— $(14)$— $(3)$— $— $(34)$(51)
(in thousands)Term Loans - Amortized Cost by Origination YearRevolving Loans Amortized Cost
December 31, 202320232022202120202019PriorTotal
Commercial and industrial:
Pass and Watch$25,615 $9,187 $2,970 $3,718 $15,128 $21,004 $62,486 $140,108 
Special Mention— — — — 334 — 9,300 9,634 
Substandard— — — — 1,311 2,697 — 4,008 
Total commercial and industrial$25,615 $9,187 $2,970 $3,718 $16,773 $23,701 $71,786 $153,750 
Commercial real estate, owner-occupied:
Pass and Watch$13,128 $41,808 $49,887 $37,708 $40,994 $114,018 $56 $297,599 
Special Mention1,431 4,498 15,636 820 286 8,902 — 31,573 
Substandard— 2,231 — — — 1,778 — 4,009 
Total commercial real estate, owner-occupied$14,559 $48,537 $65,523 $38,528 $41,280 $124,698 $56 $333,181 
Commercial real estate, non-owner occupied:
Pass and Watch$76,718 $172,028 $196,340 $150,831 $139,860 $368,675 $9,832 $1,114,284 
Special Mention— 2,790 9,498 11,776 15,708 41,602 — 81,374 
Substandard878 272 2,204 — — 20,373 — 23,727 
Total commercial real estate, non-owner occupied$77,596 $175,090 $208,042 $162,607 $155,568 $430,650 $9,832 $1,219,385 
Construction:
Pass and Watch$13,138 $24,403 $19,521 $29,512 $— $— $— $86,574 
Special Mention12,590 — — — — — — 12,590 
Total construction$25,728 $24,403 $19,521 $29,512 $— $— $— $99,164 
Home equity:
Pass and Watch$— $— $— $— $— $734 $80,773 $81,507 
Substandard— — — — — 369 211 580 
Total home equity$— $— $— $— $— $1,103 $80,984 $82,087 
Other residential:
Pass and Watch$17,861 $20,114 $13,390 $25,637 $20,935 $20,571 $— $118,508 
Total other residential$17,861 $20,114 $13,390 $25,637 $20,935 $20,571 $— $118,508 
Installment and other consumer:
Pass and Watch$22,038 $14,528 $10,632 $4,687 $5,300 $9,399 $1,061 $67,645 
Total installment and other consumer$22,038 $14,528 $10,632 $4,687 $5,300 $9,399 $1,061 $67,645 
Total loans:
Pass and Watch$168,498 $282,068 $292,740 $252,093 $222,217 $534,401 $154,208 $1,906,225 
Total Special Mention$14,021 $7,288 $25,134 $12,596 $16,328 $50,504 $9,300 $135,171 
Total Substandard$878 $2,503 $2,204 $— $1,311 $25,217 $211 $32,324 
Totals$183,397 $291,859 $320,078 $264,689 $239,856 $610,122 $163,719 $2,073,720 
Schedule of Loans Outstanding and Aging Analysis
The following table shows the amortized cost of loans by portfolio class, payment aging and non-accrual status as of June 30, 2024 and December 31, 2023.
Loan Aging Analysis by Class
(in thousands)Commercial and industrialCommercial real estate, owner-occupiedCommercial real estate, non-owner occupiedConstructionHome equityOther residentialInstallment and other consumerTotal
June 30, 2024        
 30-59 days past due$9 $709 $— $— $810 $— $646 $2,174 
 60-89 days past due9,280 — — — 927 — — 10,207 
 90 days or more past due 1
— 131 11,182 — 100 — — 11,413 
Total past due9,289 840 11,182 — 1,837 — 646 23,794 
Current159,958 324,251 1,256,659 51,239 86,208 114,054 66,236 2,058,605 
Total loans 1
$169,247 $325,091 $1,267,841 $51,239 $88,045 $114,054 $66,882 $2,082,399 
Non-accrual loans 2
$9,280 $1,306 $21,458 $— $1,197 $— $438 $33,679 
Non-accrual loans with no allowance$1,796 $1,306 $872 $— $1,197 $— $438 $5,609 
December 31, 2023        
 30-59 days past due$2,991 $618 $— $— $43 $83 $195 $3,930 
 60-89 days past due69 — 2,204 — — — 1 2,274 
 90 days or more past due 1
1,311 149 — — — — — 1,460 
Total past due4,371 767 2,204 — 43 83 196 7,664 
Current149,379 332,414 1,217,181 99,164 82,044 118,425 67,449 2,066,056 
Total loans 1
$153,750 $333,181 $1,219,385 $99,164 $82,087 $118,508 $67,645 $2,073,720 
Non-accrual loans 2
$4,008 $434 $3,081 $— $469 $— $— $7,992 
Non-accrual loans with no allowance$1,311 $434 $877 $— $469 $— $— $3,091 
1 There was one non-owner occupied commercial real estate loan 90 days past due and accruing interest as of June 30, 2024 that has been in extended renewal negotiations, but it is well-secured and expected to be restored to a current payment status in the near future. There were no non-performing loans over 90 days past due and accruing interest as of December 31, 2023.
2 None of the non-accrual loans as of June 30, 2024 or December 31, 2023 were earning interest on a cash or accrual basis. We reversed $266 thousand in accrued interest income for loans that were placed on non-accrual status during the six months ended June 30, 2024. We reversed accrued interest income of $14 thousand for loans that were placed on non-accrual status during the six months ended June 30, 2023.
Schedule of Collateral Dependent Non-Accrual Loans
The following table presents the amortized cost basis of individually analyzed collateral-dependent loans, which were all on non-accrual status, by portfolio class at June 30, 2024 and December 31, 2023.
Amortized Cost by Collateral Type
(in thousands)Commercial Real EstateResidential Real EstateBlanket LienOther
Total 1
Allowance for Credit Losses
June 30, 2024
Commercial real estate, owner-occupied$1,306 $— $— $— $1,306 $— 
Commercial real estate, non-owner occupied21,458 — — — 21,458 7,866 
Home equity— 1,197 — — 1,197 — 
Installment and other consumer— — — 438 438 — 
Total$22,764 $1,197 $— $438 $24,399 $7,866 
December 31, 2023
Commercial and industrial$1,311 $— $— $— $1,311 $— 
Commercial real estate, owner-occupied434 — — — 434 — 
Commercial real estate, non-owner occupied3,081 — — 3,081 408 
Home equity— 469 — — 469 — 
Total$4,826 $469 $— $— $5,295 $408 
1 There were no collateral-dependent residential real estate mortgage loans in process of foreclosure or in substance repossessed at June 30, 2024 and December 31, 2023. The weighted average loan-to-value of real estate secured collateral dependent loans was approximately 130% (82% net of individual reserves for credit losses) at June 30, 2024 and 70% (62% net of individual reserves for credit losses) at December 31, 2023.
Schedule of Loan Modifications to Borrowers Experiencing Financial Difficulty
The following table summarizes the amortized cost of loans as of June 30, 2024 that were modified during the three and six months ended June 30, 2024 by portfolio class and type of modification granted. There were no modifications of loans during the three and six months ended June 30, 2023 requiring disclosure.
(in thousands)Term ExtensionTotal ModificationsPercent of Portfolio Class Total
Three months ended June 30, 2024
Home equity$159 $159 0.2 %
Total
$159 $159 
Six months ended June 30, 2024
Commercial and industrial$2,191 $2,191 1.3 %
Home equity241 241 0.3 %
Total
$2,432 $2,432 
The following table summarizes the financial effect of loan modifications presented in the table above during the three and six months ended June 30, 2024 by portfolio class.
(in thousands)Weighted-Average Term Extension (in years)
Three months ended June 30, 2024
Home equity1.0
Six months ended June 30, 2024
Commercial and industrial0.3
Home equity5.6
The following table summarizes the amortized cost and payment status of loans as of June 30, 2024 that were modified during the three and six months ended June 30, 2024 by portfolio class.
(in thousands)Current30-59 Days Past Due60-89 Days Past Due90 Days or More Past DueTotalNon-Accrual
Three months ended June 30, 2024
Home equity$159 $— $— $— $159 $120 
Total
$159 $— $— $— $159 $120 
Six months ended June 30, 2024
Commercial and industrial$— $— $1,796 $— $1,796 $1,796 
Home equity238 — — — 238 199 
Total
$238 $— $1,796 $— $2,034 $1,995 
Schedule of Allowance for Credit Losses on Financing Receivables
The following table presents the details of the allowance for credit losses on loans segregated by loan portfolio class as of June 30, 2024 and December 31, 2023.

Allocation of the Allowance for Credit Losses on Loans
(in thousands)Commercial and industrialCommercial real estate, owner-occupiedCommercial real estate, non-owner occupiedConstructionHome equityOther residentialInstallment and other consumerUnallocatedTotal
June 30, 2024        
Modeled expected credit losses$959 $1,279 $7,672 $57 $583 $757 $648 $— $11,955 
Qualitative adjustments669 1,129 6,627 817 67 12 262 1,023 10,606 
Specific allocations248 — 7,866 — — — — — 8,114 
Total$1,876 $2,408 $22,165 $874 $650 $769 $910 $1,023 $30,675 
December 31, 2023        
Modeled expected credit losses$897 $1,270 $7,380 $185 $482 $619 $634 $— $11,467 
Qualitative adjustments622 1,205 6,327 1,647 70 33 342 2,038 12,284 
Specific allocations193 1 1,226 — — 1 — — 1,421 
Total$1,712 $2,476 $14,933 $1,832 $552 $653 $976 $2,038 $25,172 
The following table discloses activity in the allowance for credit losses on loans for the periods presented.

Allowance for Credit Losses on Loans Rollforward
(in thousands)Commercial and industrialCommercial real estate, owner-occupiedCommercial real estate, non-owner occupiedConstructionHome equityOther residentialInstallment and other consumerUnallocatedTotal
Three months ended June 30, 2024
Beginning balance$1,727 $2,500 $15,704 $1,282 $627 $692 $920 $2,049 $25,501 
Provision (Reversal) 177 (92)6,461 (408)23 77 (12)(1,026)5,200 
(Charge-offs)(29)— — — — — (1)— (30)
Recoveries1 — — — — — 3 — 4 
Ending balance$1,876 $2,408 $22,165 $874 $650 $769 $910 $1,023 $30,675 
Three months ended June 30, 2023
Beginning balance$1,941 $2,640 $12,701 $2,019 $538 $577 $882 $2,032 $23,330 
(Reversal) Provision(111)(51)500 (86)23 22 66 137 500 
(Charge-offs)— — — — — — (9)— (9)
Recoveries1 — — 9 — — 1 — 11 
Ending balance$1,831 $2,589 $13,201 $1,942 $561 $599 $940 $2,169 $23,832 
Allowance for Credit Losses on Loans Rollforward
(in thousands)Commercial and industrialCommercial real estate, owner-occupiedCommercial real estate, non-owner occupiedConstructionHome equityOther residentialInstallment and other consumerUnallocatedTotal
Six months ended June 30, 2024
Beginning balance$1,712 $2,476 $14,933 $1,832 $552 $653 $976 $2,038 $25,172 
Provision (Reversal)196 (68)7,232 (958)98 116 (51)(1,015)5,550 
(Charge-offs)(33)— — — — — (18)— (51)
Recoveries1 — — — — — 3 — 4 
Ending balance$1,876 $2,408 $22,165 $874 $650 $769 $910 $1,023 $30,675 
Six months ended June 30, 2023
Beginning balance$1,794 $2,487 $12,676 $1,937 $558 $595 $868 $2,068 $22,983 
Provision (Reversal)36 102 525 (12)3 4 91 101 850 
(Charge-offs)(3)— — — — — (20)— (23)
Recoveries4 — — 17 — — 1 — 22 
Ending balance$1,831 $2,589 $13,201 $1,942 $561 $599 $940 $2,169 $23,832