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Loans | 12 Months Ended
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Dec. 31, 2024
Loans and Leases Receivable Disclosure [Abstract] |
Loans | Loans 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 first quarter of 2024, a new segment was established for Agriculture loans; certain prior period information of these loans continues to be included in the C&I and CRE non-owner occupied segments. Loan Portfolio by Class: The following table shows the composition of the Company's loan portfolio as of December 31, 2024 and 2023:
| December 31, 2024 | December 31, 2023
Commercial |  |  |  |
Real Estate Owner Occupied | $ | 358,588,000 |  | 15.3 | % | $ | 314,819,000 |  | 14.8 | %
Real Estate Non-Owner Occupied | 403,899,000 |  | 17.3 | % | 390,167,000 |  | 18.3 | %
Construction | 99,717,000 |  | 4.3 | % | 88,673,000 |  | 4.2 | %
C&I | 365,817,000 |  | 15.6 | % | 315,026,000 |  | 14.8 | %
Multifamily | 108,732,000 |  | 4.6 | % | 93,476,000 |  | 4.4 | %
Agriculture | 52,219,000 |  | 2.2 | % | 45,230,000 |  | 2.1 | %
Municipal | 61,827,000 |  | 2.6 | % | 51,423,000 |  | 2.4 | %
Residential |  |  |  |
Term | 710,807,000 |  | 30.4 | % | 674,855,000 |  | 31.7 | %
Construction | 35,481,000 |  | 1.5 | % | 32,358,000 |  | 1.5 | %
Home Equity |  |  |  |
Revolving and Term | 123,063,000 |  | 5.3 | % | 104,026,000 |  | 4.9 | %
Consumer | 20,790,000 |  | 0.9 | % | 19,401,000 |  | 0.9 | %
Total loans | $ | 2,340,940,000 |  | 100.0 | % | $ | 2,129,454,000 |  | 100.0 | %
Loan balances include net deferred loan costs of $12,457,000 in 2024 and $11,479,000 in 2023. Net deferred loan costs have increased from a year ago a due to loan origination unit volume over the period. Loan balances in the Residential Term segment also include a valuation adjustments for fair value swaps hedged by certain loans in the portfolio. This adjustment added $758,000 to the loan balances as of December 31, 2024 and $2,149,000 to the loan balances as of December 31, 2023. Pursuant to collateral agreements, qualifying first mortgage loans and commercial real estate, which totaled $626,851,000 and $561,574,000 at December 31, 2024 and 2023, respectively, were used to collateralize borrowings from the FHLBB. In addition, commercial, residential construction and home equity loans totaling $392,562,000 at December 31, 2024 and $320,083,000 at December 31, 2023 were used to collateralize a standby line of credit at the FRBB. Loans to Directors, Officers and Employees: Loans to directors, officers and employees totaled $54,997,000 at December 31, 2024 and $54,425,000 at December 31, 2023. A summary of loans to directors and executive officers is as follows:
For the years ended December 31, | 2024 |  | 2023
Balance at beginning of year | $ | 33,524,000 |  |  | $ | 29,490,000 |
New loans | 3,462,000 |  |  | 9,921,000 |
Repayments | (4,804,000) |  |  | (5,598,000) |
Retired director | — |  |  | (289,000) |
Balance at end of year | $ | 32,182,000 |  |  | $ | 33,524,000 |
Past Due Loans: For all loan classes, loans over 30 days past due are considered delinquent. Information on the past-due status of loans by class of financing receivable as of December 31, 2024, is presented in the following table:
| 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 | $ | — |  | $ | 257,000 |  | $ | 292,000 |  | $ | 549,000 |  | $ | 358,039,000 |  | $ | 358,588,000 |  | $ | — |
Real Estate Non-Owner Occupied | — |  | — |  | — |  | — |  | 403,899,000 |  | 403,899,000 |  | — |
Construction | — |  | — |  | — |  | — |  | 99,717,000 |  | 99,717,000 |  | — |
C&I | 346,000 |  | 1,112,000 |  | 540,000 |  | 1,998,000 |  | 363,819,000 |  | 365,817,000 |  | 10,000 |
Multifamily | — |  | — |  | — |  | — |  | 108,732,000 |  | 108,732,000 |  | — |
Agriculture | 115,000 |  | — |  | — |  | 115,000 |  | 52,104,000 |  | 52,219,000 |  | — |
Municipal | — |  | — |  | — |  | — |  | 61,827,000 |  | 61,827,000 |  | — |
Residential |  |  |  |  |  |  |
Term | 137,000 |  | 2,614,000 |  | 935,000 |  | 3,686,000 |  | 707,121,000 |  | 710,807,000 |  | 778,000 |
Construction | 390,000 |  | — |  | — |  | 390,000 |  | 35,091,000 |  | 35,481,000 |  | — |
Home Equity |  |  |  |  |  |  |
Revolving and Term | 1,074,000 |  | 368,000 |  | 94,000 |  | 1,536,000 |  | 121,527,000 |  | 123,063,000 |  | — |
Consumer | 592,000 |  | 285,000 |  | 232,000 |  | 1,109,000 |  | 19,681,000 |  | 20,790,000 |  | 232,000 |
Total | $ | 2,654,000 |  | $ | 4,636,000 |  | $ | 2,093,000 |  | $ | 9,383,000 |  | $ | 2,331,557,000 |  | $ | 2,340,940,000 |  | $ | 1,020,000 |
Information on the past-due status of loans by class of financing receivable as of December 31, 2023, is presented in the following table:
| 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 |
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. The following table presents the amortized costs basis of loans on nonaccrual status as of as of December 31, 2024 and 2023 is presented in the following table:
As of December 31, | 2024 | 2023
| 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 | $ | — |  | $ | 553,000 |  | $ | 553,000 |  | $ | — |  | $ | — |  | $ | — |
Real Estate Non-Owner Occupied | — |  | 61,000 |  | 61,000 |  | — |  | — |  | — |
Construction | — |  | 18,000 |  | 18,000 |  | — |  | 29,000 |  | 29,000 |
C&I | 1,359,000 |  | 336,000 |  | 1,695,000 |  | 354,000 |  | 184,000 |  | 538,000 |
Multifamily | — |  | — |  | — |  | — |  | — |  | — |
Agriculture | — |  | 31,000 |  | 31,000 |  | — |  | — |  | — |
Municipal | — |  | — |  | — |  | — |  | — |  | — |
Residential |  |  |  |  |  |
Term | — |  | 1,599,000 |  | 1,599,000 |  | 304,000 |  | 1,011,000 |  | 1,315,000 |
Construction | — |  | — |  | — |  | — |  | — |  | — |
Home Equity |  |  |  |  |  |
Revolving and Term | — |  | 291,000 |  | 291,000 |  | — |  | 296,000 |  | 296,000 |
Consumer | — |  | — |  | — |  | — |  | — |  | — |
Total | $ | 1,359,000 |  | $ | 2,889,000 |  | $ | 4,248,000 |  | $ | 658,000 |  | $ | 1,520,000 |  | $ | 2,178,000 |
For the years ended December 31, 2024 and 2023, interest income which would have been recognized on these loans, if interest had been accrued, was $172,000 and $142,000. Loans more than 90 days past due accruing interest totaled $1,020,000 at December 31, 2024 and $429,000 at December 31, 2023. The Company continues to accrue interest on these loans because it believes collection of principal and interest is reasonably assured. Individually Analyzed Loans: IAL include loans with balances of $250,000 or more that have either been placed into nonaccrual or are loans identified by management as having characteristics that may impact ultimate collectibility and therefore merit individual analysis. 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. The following table presents the amortized cost basis of collateral-dependent loans as of December 31, 2024 and 2023, by collateral type:
| December 31, 2024 | December 31, 2023
| Collateral Type |  | Collateral Type |
| Commercial Real Estate | Residential Real Estate | Other | Total | Commercial Real Estate | Residential Real Estate | Total
Commercial |  |  |  |  |  |  |
Real estate owner occupied | $ | 263,000 |  | $ | — |  | $ | — |  | $ | 263,000 |  | $ | — |  | $ | — |  | $ | — |
Real estate non-owner occupied | 67,000 | — | — | 67,000 | — | — | —
Construction | — | — | — | — | — | — | —
C&I | — | — | 1,438,000 | 1,438,000 | — | — | —
Multifamily | — | — | — | — | — | — | —
Agriculture | — | — | — | — | — | — | —
Municipal | — | — | — | — | — | — | —
Residential |  |  |  |  |  |  |
Term | — | 558,000 | — | 558,000 | — | 685,000 | 685,000
Construction | — | — | — | — | — | — | —
Home Equity |  |  |  |  |  |  |
Revolving and term | — | — | — | — | — | — | —
Consumer | — | — | — | — | — | — | —
Total | $ | 330,000 |  | $ | 558,000 |  | $ | 1,438,000 |  | $ | 2,326,000 |  | $ | — |  | $ | 685,000 |  | $ | 685,000 |
Collateral-dependent loans are loans for which the repayment is expected to be provided substantially by the underlying collateral and there are no other available and reliable sources of repayment. 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. The following tables represent loan modifications made to borrowers experiencing financial difficulty by modification type and class of financing receivable, during the year ended December 31, 2024:
Amortized Cost Basis
| Payment Deferral | Term Extension | Interest Rate Reduction | Principal Forgiveness | Combination Payment Deferral and Term Extension | % of Total Class of Financing Receivable
Commercial |  |  |  |  |  |
Real estate owner occupied | $ | 633,000 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | 0.18 | %
Construction | 69,000 |  | — |  | — |  | — |  | — |  | 0.08 | %
C&I | 169,000 |  | 13,000 |  | — |  | — |  | 54,000 |  | 0.06 | %
Multifamily | 1,932,000 |  | — |  | — |  | — |  | — |  | 1.75 | %
Residential |  |  |  |  |  |
Term | 1,019,000 |  | 127,000 |  | — |  | — |  | — |  | 0.16 | %
Home Equity |  |  |  |  |  |
Revolving and term | — |  | — |  | — |  | — |  | 66,000 |  | 0.06 | %
Total | $ | 3,822,000 |  | $ | 140,000 |  | $ | — |  | $ | — |  | $ | 120,000 |  |
The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty for the year ended December 31, 2024:
| Payment Deferral
| Financial Effect
Commercial |
Real estate owner occupied | Temporary payment accommodation, payments deferred to end of loan
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
| Term Extension
| Financial Effect
Commercial |
C&I | Extended Term 12 months
Residential |
Term | Extended Term 24 months
| Payment Deferral & Term Extension
| Financial Effect
Commercial |
C&I | Temporary payment accommodation, payments deferred to end of loan - Extended Term 90 days
Home Equity |
Revolving and term | Temporary payment accommodation, payments deferred to end of loan - Extended Term 60 days
The following tables represent loan modifications made to borrowers experiencing financial difficulty by modification type and class of financing receivable, during the year ended December 31, 2023:
Amortized Cost Basis
| Payment Deferral | Term Extension | Interest Rate Reduction | Principal Forgiveness | Combination Payment Deferral and Term Extension | % of Total Class of Financing Receivable
Commercial |  |  |  |  |  |
Real estate owner occupied | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 786,000 |  | 0.25 | %
C&I | 114,000 |  | — |  | — |  | — |  | 174,000 |  | 0.09 | %
Consumer | 23,000 |  | 13,000 |  | — |  | — |  | — |  | 0.19 | %
Total | $ | 137,000 |  | $ | 13,000 |  | $ | — |  | $ | — |  | $ | 960,000 |  |
The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty for the year ended December 31, 2023:
| Payment Deferral
| Financial Effect
Commercial |
C&I | Temporary payment accommodation, payments deferred to end of loan
Consumer | Temporary payment accommodation, payments deferred to end of loan
| Term Extension
| Financial Effect
Consumer | Extended Term 90 days
| Payment Deferral & Term Extension
| Financial Effect
Commercial |
Commercial real estate owner occupied | Temporary payment accommodation, payments deferred to end of loan - Extended Term 90 days
C&I | Temporary payment accommodation, payments deferred to end of loan - Extended Term 90 days
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 year ended December 31, 2024:
| 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 | $ | 633,000 |  | $ | — |  | $ | — |  | $ | — |
Real estate non-owner occupied | — |  | — |  | — |  | — |
Construction | 69,000 |  | — |  | — |  | — |
C&I | 236,000 |  | — |  | — |  | — |
Multifamily | 1,932,000 |  | — |  | — |  | — |
Agriculture | — |  | — |  | — |  | — |
Residential |  |  |  |
Term | 570,000 |  | 127,000 |  | 449,000 |  | — |
Home Equity |  |  |  |
Revolving and term | 66,000 |  | — |  | — |  | — |
Consumer | — |  | — |  | — |  | — |
Total | $ | 3,506,000 |  | $ | 127,000 |  | $ | 449,000 |  | $ | — |
The following table depicts loans that were modified in 2023 which defaulted upon the modified terms during 2024:
| Payment Status (Amortized Cost Basis)
| 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due
Commercial |  |  |
Real estate owner occupied | $ | 502,000 |  | $ | — |  | $ | 283,000 |
C&I | — |  | — |  | 35,000 |
Consumer | — |  | — |  | 13,000 |
Total | $ | 502,000 |  | $ | — |  | $ | 331,000 |
The following table depicts the performance of loans that have been modified during 2023 as of December 31, 2023:
| 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 |  | $ | — |  | $ | — |  | $ | — |
C&I | 269,000 |  | 19,000 |  | — |  | — |
Consumer | 36,000 |  | — |  | — |  | — |
Total | $ | 1,091,000 |  | $ | 19,000 |  | $ | — |  | $ | — |
Residential Mortgage Loans in Process of Foreclosure As of December 31, 2024, there were three mortgage loans collateralized by residential real estate in the process of foreclosure with a total balance of $192,000. 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.

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- Definition The entire disclosure for claims held for amounts due to entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 835 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482925/835-30-45-2 + Details
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