The Company periodically reviews and updates the segmentation of its loan portfolio. Updates performed in conjunction with adoption of ASC 326 in 2023 consisted of reporting what had been a single class, commercial real estate loans, as three classes - commercial real estate owner occupied, commercial real estate non-owner occupied, and commercial multi-family. In addition home equity installment loans which had previously been included in the residential term class were included in the home equity revolving and term class. In the current reporting period, a new segment has been established for Agriculture loans; certain prior period information of these loans continues to be included the C&I and CRE non-owner occupied segments.


	March 31, 2024				December 31, 2023				March 31, 2023
Commercial
Real estate owner occupied	$	327,496,000	15.1	%	$	314,819,000	14.8	%	$	285,224,000	14.4	%
Real estate non-owner occupied	399,658,000		18.4	%	390,167,000		18.3	%	380,922,000		19.2	%
Construction	85,817,000		3.9	%	88,673,000		4.2	%	72,705,000		3.7	%
C&I	321,855,000		14.8	%	315,026,000		14.8	%	294,885,000		14.9	%
Multifamily	101,344,000		4.7	%	93,476,000		4.4	%	81,089,000		4.1	%
Agriculture	45,064,000		2.1	%	45,230,000		2.1	%	48,338,000		2.4	%
Municipal	54,746,000		2.5	%	51,423,000		2.4	%	47,166,000		2.4	%
Residential
Term	678,093,000		31.1	%	674,855,000		31.7	%	606,849,000		30.5	%
Construction	34,824,000		1.6	%	32,358,000		1.5	%	52,712,000		2.7	%
Home Equity
Revolving and term	105,814,000		4.9	%	104,026,000		4.9	%	93,522,000		4.7	%
Consumer	19,035,000		0.9	%	19,401,000		0.9	%	19,435,000		1.0	%
Total	$	2,173,746,000	100.0	%	$	2,129,454,000	100.0	%	$	1,982,847,000	100.0	%

Loan balances include net deferred loan costs of $11,745,000 as of March 31, 2024, $11,479,000 as of December 31, 2023, and $10,315,000 as of March 31, 2023. Net deferred loan costs have increased from a year ago and year-to-date based upon loan origination unit volume over the periods, prepayments, and normal repayment activity. Loan balances in the Residential Term segment also include a valuation adjustment for fair value swaps hedged by certain loans in the portfolio. This adjustment added $313,000 to the loan balances as of March 31, 2024 and $2,149,000 as of December 31, 2023; there was no such adjustment as of March 31, 2023.

Pursuant to collateral agreements, qualifying first mortgage loans and commercial real estate loans, which totaled $565,047,000 at March 31, 2024, were used to collateralize borrowings from the FHLBB. This compares to qualifying loans which totaled $561,574,000 at December 31, 2023, and $527,949,000 at March 31, 2023. In addition, commercial, residential construction and home equity loans totaling $322,124,000 at March 31, 2024, $320,083,000 at December 31, 2023, and $373,791,000 at March 31, 2023, were used to collateralize a standby line of credit at the FRBB.


	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		All Past Due		Current		Total		90+ Days & Accruing
Commercial
Real estate owner occupied	$	283,000	$	164,000	$	—	$	447,000	$	327,049,000	$	327,496,000	$	—
Real estate non-owner occupied	—		—		—		—		399,658,000		399,658,000		—
Construction	—		—		—		—		85,817,000		85,817,000		—
C&I	58,000		14,000		15,000		87,000		321,768,000		321,855,000		—
Multifamily	—		—		—		—		101,344,000		101,344,000		—
Agriculture	119,000		—		—		119,000		44,945,000		45,064,000		—
Municipal	—		—		—		—		54,746,000		54,746,000		—
Residential
Term	36,000		47,000		746,000		829,000		677,264,000		678,093,000		48,000
Construction	—		—		—		—		34,824,000		34,824,000		—
Home equity
Revolving and term	363,000		—		33,000		396,000		105,418,000		105,814,000		—
Consumer	158,000		10,000		2,000		170,000		18,865,000		19,035,000		2,000
Total	$	1,017,000	$	235,000	$	796,000	$	2,048,000	$	2,171,698,000	$	2,173,746,000	$	50,000


	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		All Past Due		Current		Total		90+ Days & Accruing
Commercial
Real estate owner occupied	$	—	$	—	$	—	$	—	$	314,819,000	$	314,819,000	$	—
Real estate non-owner occupied	—		—		—		—		393,636,000		393,636,000		—
Construction	—		9,000		8,000		17,000		88,656,000		88,673,000		—
C&I	714,000		35,000		120,000		869,000		355,918,000		356,787,000		10,000
Multifamily	—		—		—		—		93,476,000		93,476,000		—
Municipal	31,000		—		—		31,000		51,392,000		51,423,000		—
Residential
Term	254,000		818,000		728,000		1,800,000		673,055,000		674,855,000		360,000
Construction	—		—		—		—		32,358,000		32,358,000		—
Home equity
Revolving and term	495,000		95,000		26,000		616,000		103,410,000		104,026,000		—
Consumer	475,000		22,000		58,000		555,000		18,846,000		19,401,000		59,000
Total	$	1,969,000	$	979,000	$	940,000	$	3,888,000	$	2,125,566,000	$	2,129,454,000	$	429,000


	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		All Past Due		Current		Total		90+ Days & Accruing
Commercial
Real estate owner occupied	$	—	$	1,000	$	151,000	$	152,000	$	285,072,000	$	285,224,000	$	—
Real estate non-owner occupied	—		—		—		—		384,457,000		384,457,000		—
Construction	—		—		—		—		72,705,000		72,705,000		—
C&I	106,000		12,000		182,000		300,000		339,388,000		339,688,000		34,000
Multifamily	—		—		—		—		81,089,000		81,089,000		—
Municipal	—		—		—		—		47,166,000		47,166,000		—
Residential
Term	260,000		207,000		339,000		806,000		606,043,000		606,849,000		173,000
Construction	—		—		—		—		52,712,000		52,712,000		—
Home equity
Revolving and term	498,000		6,000		64,000		568,000		92,954,000		93,522,000		—
Consumer	104,000		15,000		1,000		120,000		19,315,000		19,435,000		1,000
Total	$	968,000	$	241,000	$	737,000	$	1,946,000	$	1,980,901,000	$	1,982,847,000	$	208,000

Non-Accrual Loans: For all classes, loans are placed on non-accrual status when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement or when principal and interest is 90 days or more past due unless the loan is both well secured and in the process of collection (in which case the loan may continue to accrue interest in spite of its past due status). A loan is "well secured" if it is secured (1) by collateral in the form of liens on or pledges of real or personal property, including securities, that have a realizable value sufficient to discharge the debt (including accrued interest) in full, or (2) by the guarantee of a financially responsible party. A loan is "in the process of collection" if collection of the loan is proceeding in due course either (1) through legal action, including judgment enforcement procedures, or, (2) in appropriate circumstances, through collection efforts not involving legal action which are reasonably expected to result in repayment of the debt or in its restoration to a current status in the near future.

Cash payments received on non-accrual loans are applied to reduce the loan's principal balance until the remaining principal balance is deemed collectible, after which interest is recognized when collected. As a general rule, a loan may be restored to accrual status when payments are current for a substantial period of time, generally six months, and repayment of the remaining contractual amounts is expected, or when it otherwise becomes well secured and in the process of collection.


	March 31, 2024						December 31, 2023						March 31, 2023
Dollars in thousands	Nonaccrual with Allowance for Credit Loss		Nonaccrual with no Allowance for Credit Loss		Total Nonaccrual		Nonaccrual with Allowance for Credit Loss		Nonaccrual with no Allowance for Credit Loss		Total Nonaccrual		Nonaccrual with Allowance for Credit Loss		Nonaccrual with no Allowance for Credit Loss		Total Nonaccrual
Commercial
Real estate owner occupied	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	152,000	$	152,000
Real estate non-owner occupied	—		—		—		—		—		—		—		—		—
Construction	—		20,000		20,000		—		29,000		29,000		—		23,000		23,000
C&I	346,000		48,000		394,000		354,000		184,000		538,000		530,000		118,000		648,000
Multifamily	—		—		—		—		—		—		—		—		—
Agriculture	—		33,000		33,000		—		—		—		—		—		—
Municipal	—		—		—		—		—		—		—		—		—
Residential													—		—		—
Term	—		1,959,000		1,959,000		304,000		1,011,000		1,315,000		—		443,000		443,000
Construction	—		—		—		—		—		—		—		—		—
Home equity													—		—		—
Revolving and term	—		304,000		304,000		—		296,000		296,000		—		534,000		534,000
Consumer	—		—		—		—		—		—		—		—		—
Total	$	346,000	$	2,364,000	$	2,710,000	$	658,000	$	1,520,000	$	2,178,000	$	530,000	$	1,270,000	$	1,800,000

Individually Analyzed Loans: IAL include loans placed on non-accrual and loans reported as TDR prior to adoption of ASU 2022-02 with balances of $250,000 or more. These loans are measured at the present value of expected future cash flows discounted at the loan's effective interest rate or at the fair value of the collateral if the loan is collateral dependent. If the measure of an IAL loan is lower than the recorded investment in the loan and estimated selling costs, a specific reserve is established for the difference, or, in certain situations, if the measure of an IAL loan is lower than the recorded investment in the loan and estimated selling costs, the difference is written off.


	Collateral Type
	Residential Real Estate		Total
Commercial
Real estate owner occupied	$	—	$	—
Real estate non-owner occupied	—		—
Construction	—		—
C&I	—		—
Multifamily	—		—
Agriculture	—		—
Municipal	—		—
Residential
Term	950,000		950,000
Construction	—		—
Home Equity
Revolving and term	—		—
Consumer	—		—
Total	$	950,000	$	950,000

The following table presents the amortized cost basis of collateral-dependent loans as of December 31, 2023 by collateral type:


	Collateral Type
	Residential Real Estate		Total
Commercial
Real estate owner occupied	$	—	$	—
Real estate non-owner occupied	—		—
Construction	—		—
C&I	—		—
Multifamily	—		—

Municipal	—		—
Residential
Term	685,000		685,000
Construction	—		—
Home Equity
Revolving and term	—		—
Consumer	—		—
Total	$	685,000	$	685,000

For the period ended March 31, 2023, IAL include all loans that had been reported as TDR loans prior to adoption of ASU 2022-02 and loans placed on non-accrual. The following table presents the amortized cost basis of collateral-dependent loans as of March 31, 2023 by collateral type:


	Collateral Type
	Commercial Real Estate		Residential Real Estate		Equipment1		Total
Commercial
Real estate owner occupied	$	198,000	$	—	$	—	$	198,000
Real estate non-owner occupied	844,000		—		—		844,000
Construction	23,000		—		—		23,000
C&I	79,000		—		192,000		271,000
Multifamily	—		—		—		—

Municipal	—		—		—		—
Residential
Term	—		1,438,000		—		1,438,000
Construction	—		—		—		—
Home Equity
Revolving and term	—		534,000		—		534,000
Consumer	—		—		—		—
Total	$	1,144,000	$	1,972,000	$	192,000	$	3,308,000

1Collateral may consist of a boat, vehicle or other equipment.

Loan Modifications to Borrowers Experiencing Financial Difficulty: Loan modifications to borrowers experiencing financial difficulty may include interest rate reduction, term extension, payment deferral, principle forgiveness or a combination thereof. It is the intent to minimize future losses while providing borrowers with financial relief.








	Payment Deferral
	Amortized Cost Basis at March 31, 2024	% of Total Class of Financing Receivable
Commercial
Construction	$69,000	0.08%
C&I	61,000	0.02%
Multifamily	1,932,000	1.91%
Residential
Term	1,023,000	0.15%
Total	$3,085,000






			Payment Deferral
			Financial Effect
Commercial
Construction			Temporary payment accommodation, payments deferred to end of loan.
C&I			Temporary payment accommodation, payments deferred to end of loan.
Multifamily			Temporary payment accommodation, payments deferred to end of loan.
Residential
Term			Temporary payment accommodation, payments deferred to end of loan.

The Company monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified during the previous 12 months:


	Payment Status (Amortized Cost Basis)
	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due
Commercial
Real estate owner occupied	$	786,000	$	—	$	—	$	—
Construction	69,000		—		—		—
C&I	96,000		—		—		—
Multifamily	1,932,000		—		—		—

Residential
Term	1,023,000		—		—		—
Home Equity
Revolving and term	70,000		—		—		—
Consumer	34,000		—		—		—
Total	$	4,010,000	$	—	$	—	$	—

As of March 31, 2024, there were four mortgage loans collateralized by residential real estate in the process of foreclosure with a total balance of $510,000. This compares to five mortgage loans collateralized by residential real estate in the process of foreclosure with a total balance of $400,000 as of December 31, 2023 and two mortgage loans collateralized by residential real estate in the process of foreclosure with a total balance of $166,000 March 31, 2023.