XML 30 R13.htm IDEA: XBRL DOCUMENT
v3.25.0.1

LOANS AND ALLOWANCE FOR CREDIT LOSSES | 12 Months Ended
--- | ---
Dec. 31, 2024
Loans and Leases Receivable Disclosure [Abstract] |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | LOANS AND ALLOWANCE FOR CREDIT LOSSES The composition of the loan portfolio, net of deferred loan fees as of December 31, 2024 and 2023 is summarized as follows (in thousands):
| 2024 |  | 2023
Commercial and industrial | $ | 299,521 |  |  | $ | 264,396 |
Commercial mortgages: |  |  |
Construction | 94,943 |  |  | 138,887 |
Commercial mortgages, other | 1,122,061 |  |  | 984,038 |
Residential mortgages | 274,979 |  |  | 277,992 |
Consumer loans: |  |  |
Home equity lines and loans | 93,220 |  |  | 87,056 |
Indirect consumer loans | 178,118 |  |  | 210,423 |
Direct consumer loans | 8,577 |  |  | 9,872 |
Total loans, net of deferred loan fees | 2,071,419 |  |  | 1,972,664 |
Allowance for credit losses | (21,388) |  |  | (22,517) |
Loans, net of allowance for credit losses | $ | 2,050,031 |  |  | $ | 1,950,147 |
The Corporation's concentrations of credit risk by loan type are reflected in the preceding table. The concentrations of credit risk with standby letters of credit, committed lines of credit and commitments to originate new loans generally follow the loan classifications in the table above. Accrued interest receivable on loans was $8.0 million as of December 31, 2024 and $7.8 million as of December 31, 2023. Accrued interest receivable on loans is included in the accrued interest receivable and other assets line item on the Corporation's Consolidated Balance Sheets, and is excluded from the amortized cost basis of loans and estimate of the allowance for credit losses, as presented in this Note. Commercial and industrial loans includes agricultural loans which totaled $0.3 million as of December 31, 2024 and 2023. Agricultural loans were previously presented as a standalone loan category. Prior period information included in this Note reflects agricultural loans as a component of commercial and industrial loans. The Corporation had no residential mortgages held for sale as of December 31, 2024 and December 31, 2023. When the Corporation has loans classified as held for sale, they are not included in the table above. Residential mortgage and home equity loans totaling $244.6 million as of December 31, 2024 and $254.6 million as of December 31, 2023 were pledged under a blanket collateral agreement for the Corporation's line of credit with the FHLBNY. The following tables present the activity in the allowance for credit losses by portfolio segment for the years ended December 31, 2024 and 2023 (in thousands):
| December 31, 2024
Allowance for credit losses | Commercial and Industrial |  | Commercial Mortgages |  | Residential Mortgages |  | Consumer Loans |  |  |  | Total
Beginning balance, January 1, 2024 | $ | 5,055 |  |  | $ | 12,026 |  |  | $ | 2,194 |  |  | $ | 3,242 |  |  |  |  | $ | 22,517 |
Charge Offs: | (302) |  |  | — |  |  | (21) |  |  | (1,550) |  |  |  |  | (1,873) |
Recoveries: | 128 |  |  | 4 |  |  | 62 |  |  | 519 |  |  |  |  | 713 |
Net (charge offs) recoveries | (174) |  |  | 4 |  |  | 41 |  |  | (1,031) |  |  |  |  | (1,160) |
Provision (1) | (361) |  |  | (816) |  |  | 24 |  |  | 1,184 |  |  |  |  | 31 |
Ending balance, December 31, 2024 | $ | 4,520 |  |  | $ | 11,214 |  |  | $ | 2,259 |  |  | $ | 3,395 |  |  |  |  | $ | 21,388 |
(1) Additional provision related to off-balance sheet exposure was a credit of $77 thousand for the year ended December 31, 2024.
| December 31, 2023
Allowance for credit losses | Commercial and Industrial |  | Commercial Mortgages |  | Residential Mortgages |  | Consumer Loans |  |  |  | Total
Beginning balance, January 1, 2023 | $ | 3,373 |  |  | $ | 11,576 |  |  | $ | 1,845 |  |  | $ | 2,865 |  |  |  |  | $ | 19,659 |
Cumulative effect adjustment for the adoption of ASC-326 | 909 |  |  | (695) |  |  | (16) |  |  | 176 |  |  |  |  | 374 |
Beginning balance after cumulative effect adjustment, January 1, 2023 | 4,282 |  |  | 10,881 |  |  | 1,829 |  |  | 3,041 |  |  |  |  | 20,033 |
Charge Offs: | (281) |  |  | — |  |  | (32) |  |  | (1,070) |  |  |  |  | (1,383) |
Recoveries: | 22 |  |  | 4 |  |  | — |  |  | 416 |  |  |  |  | 442 |
Net recoveries (charge offs) | (259) |  |  | 4 |  |  | (32) |  |  | (654) |  |  |  |  | (941) |
Provision (1) | 1,032 |  |  | 1,141 |  |  | 397 |  |  | 855 |  |  |  |  | 3,425 |
Ending balance, December 31, 2023 | $ | 5,055 |  |  | $ | 12,026 |  |  | $ | 2,194 |  |  | $ | 3,242 |  |  |  |  | $ | 22,517 |
(1) Additional provision related to off-balance sheet exposure was a credit of $163 thousand for the year ended December 31, 2023. Unfunded Commitments The allowance for credit losses on unfunded commitments represents the amount held against credit exposures which are not represented on the Consolidated Balance Sheets. The allowance is recognized as a liability, a component of other liabilities on the Consolidated Balance Sheets, with adjustments to the allowance recognized in the provision for credit losses line item on the Consolidated Statements of Income. The Corporation established an allowance for credit losses on unfunded commitments in conjunction with its adoption of ASC 326-Financial Instruments-Credit Losses. The following table presents the activity in the allowance for credit losses on unfunded commitments for the years ended December 31, 2024 and 2023:
| For the Years Ended December 31,
Allowance for credit losses on unfunded commitments | 2024 |  | 2023
Beginning balance | $ | 919 |  |  | $ | — |
Impact of adoption of ASC-326 | — |  |  | 1,082 |
Provision for credit losses on unfunded commitments | (77) |  |  | (163) |
Ending balance | $ | 842 |  |  | $ | 919 |
The following table presents the provision for credit losses on loans and unfunded commitments for the years ended December 31, 2024 and 2023 (in thousands):
| For the Years Ended December 31,
Provision for credit losses | 2024 |  | 2023
Provision for credit losses on loans | $ | 31 |  |  | $ | 3,425 |
Provision for credit losses on unfunded commitments | (77) |  |  | (163) |
Total provision (credit) for credit losses | $ | (46) |  |  | $ | 3,262 |
The following tables present the balance in the allowance for credit losses and the amortized cost basis in loans by portfolio segment and based on analysis status as of December 31, 2024 and 2023 (in thousands):
| December 31, 2024
Allowance for credit losses | Commercial and Industrial |  | Commercial Mortgages |  | Residential Mortgages |  | Consumer Loans |  | Total
Ending allowance balance attributable to loans: |  |  |  |  |  |  |  |  |
Individually analyzed | $ | 1,446 |  |  | $ | 106 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,552 |
Collectively analyzed | 3,074 |  |  | 11,108 |  |  | 2,259 |  |  | 3,395 |  |  | 19,836 |
Total ending allowance balance | $ | 4,520 |  |  | $ | 11,214 |  |  | $ | 2,259 |  |  | $ | 3,395 |  |  | $ | 21,388 |
| December 31, 2023
Allowance for credit losses | Commercial and Industrial |  | Commercial Mortgages |  | Residential Mortgages |  | Consumer Loans |  | Total
Ending allowance balance attributable to loans: |  |  |  |  |  |  |  |  |
Individually analyzed | $ | 1,928 |  |  | $ | 27 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,955 |
Collectively analyzed | 3,127 |  |  | 11,999 |  |  | 2,194 |  |  | 3,242 |  |  | 20,562 |
Total ending allowance balance | $ | 5,055 |  |  | $ | 12,026 |  |  | $ | 2,194 |  |  | $ | 3,242 |  |  | $ | 22,517 |
| December 31, 2024
Loans | Commercial and Industrial |  | Commercial Mortgages |  | Residential Mortgages |  | Consumer Loans |  | Total
Loans individually analyzed | $ | 1,512 |  |  | $ | 4,959 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,471 |
Loans collectively analyzed | 298,009 |  |  | 1,212,045 |  |  | 274,979 |  |  | 279,915 |  |  | 2,064,948 |
Total ending loans balance | $ | 299,521 |  |  | $ | 1,217,004 |  |  | $ | 274,979 |  |  | $ | 279,915 |  |  | $ | 2,071,419 |
| December 31, 2023
Loans | Commercial and Industrial |  | Commercial Mortgages |  | Residential Mortgages |  | Consumer Loans |  | Total
Loans individually analyzed | $ | 2,067 |  |  | $ | 5,968 |  |  | $ | — |  |  | $ | — |  |  | $ | 8,035 |
Loans collectively analyzed | 262,329 |  |  | 1,116,957 |  |  | 277,992 |  |  | 307,351 |  |  | 1,964,629 |
Total ending loans balance | $ | 264,396 |  |  | $ | 1,122,925 |  |  | $ | 277,992 |  |  | $ | 307,351 |  |  | $ | 1,972,664 |
Modifications to Loans Made to Borrowers Experiencing Financial Difficulty Effective January 1, 2023, the Corporation adopted ASU 2022-02, Financial Instruments-Credit Losses (Topic 326)-Troubled Debt Restructurings and Vintage Disclosures, on a prospective basis. The Corporation may occasionally make modifications to loans where the borrower is considered to be experiencing financial difficulty. Types of modifications considered under ASU 2022-02 include principal reductions, interest rate reductions, term extensions, significant payment delays, or a combination thereof. The following tables summarize the amortized cost basis of loans modified during the years ended December 31, 2024 and 2023 (in thousands):
| December 31, 2024
Loans modified under ASU 2022-02 | Principal Reduction |  | Interest Rate Reduction |  | Term Extension |  | Payment Delay |  | Combination |  | Total |  | (%) of Loan Class (1)
Commercial & industrial | $ | — |  |  | $ | — |  |  | $ | 384 |  |  | $ | — |  |  | $ | — |  |  | $ | 384 |  |  | 0.13 | %
Commercial mortgages: |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial mortgages, other | — |  |  | — |  |  | — |  |  | 376 |  |  | — |  |  | 376 |  |  | 0.03 | %
Residential mortgages | — |  |  | — |  |  | — |  |  | 440 |  |  | — |  |  | 440 |  |  | 0.16 | %
Total | $ | — |  |  | $ | — |  |  | $ | 384 |  |  | $ | 816 |  |  | $ | — |  |  | $ | 1,200 |  |  |
(1) Represents the amortized cost basis of loans modified during the period as a percentage of the period-end loan balances by class.
| December 31, 2023
Loans modified under ASU 2022-02 | Principal Reduction |  | Interest Rate Reduction |  | Term Extension |  | Payment Delay |  | Combination |  | Total |  | (%) of Loan Class (1)
Commercial & industrial | $ | — |  |  | $ | — |  |  | $ | 1,011 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,011 |  |  | 0.38 | %
Commercial mortgages: |  |  |  |  |  |  |  |  |  |  | — |  |  |
Commercial mortgages, other | — |  |  | — |  |  | 272 |  |  | 1,878 |  |  | — |  |  | 2,150 |  |  | 0.22 | %
Consumer loans: |  |  |  |  |  |  |  |  |  |  | — |  |  |
Home equity lines and loans | — |  |  | — |  |  | 116 |  |  | — |  |  | — |  |  | 116 |  |  | 0.13 | %
Total | $ | — |  |  | $ | — |  |  | $ | 1,399 |  |  | $ | 1,878 |  |  | $ | — |  |  | $ | 3,277 |  |  |
(1) Represents the amortized cost basis of loans modified during the period as a percentage of the period-end loan balances by class. The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the years ended December 31, 2024 and 2023:
| December 31, 2024
Effect of loan modifications under ASU 2022-02 | Principal reduction (in thousands) |  | Weighted average interest rate reduction (%) |  | Weighted average term extension (in months) |  | Weighted-average payment delay (in months)
Commercial & industrial | $— |  | —% |  | 60 months |  | 0 months
Commercial mortgages: |  |  |  |  |  |  |
Commercial mortgages, other | $— |  | —% |  | 0 months |  | 101 months
Residential mortgages | $— |  | —% |  | 0 months |  | 6 months
| December 31, 2023
| Principal Reduction (in thousands) |  | Weighted average interest rate reduction (%) |  | Weighted average term extension (in months) |  | Weighted average payment delay (in months)
Commercial & industrial | — |  | —% |  | 12 months |  | 0 months
Commercial mortgages: |  |  |  |  |  |  |
Commercial mortgages, other | — |  | —% |  | 60 months |  | 4 months
Consumer loans: |  |  |  |  |  |  |
Home equity lines and loans | — |  | —% |  | 180 months |  | 0 months
The Corporation closely monitors the performance of loans that have been modified in accordance with ASU 2022-02 in order to gauge the effectiveness of its modifications, and to determine the degree to which borrowers continue to demonstrate financial weakness following modification. The following tables present the performance of such loans that were modified in the twelve month periods preceding December 31, 2024 and 2023 (in thousands):
| Twelve Months Ended December 31, 2024
Past Due Status of Modifications under ASU 2022-02: | 30-59 Days Past Due |  | 60-89 Days Past Due |  | Greater Than 89 Days Past Due |  | Loans Not Past Due |  | Total
Commercial and industrial | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 384 |  |  | $ | 384 |
Commercial mortgages: |  |  |  |  |  |  |  |  |
Commercial mortgages, other | — |  |  | — |  |  | — |  |  | 376 |  |  | 376 |
Residential mortgages (1) | — |  |  | — |  |  | 440 |  |  | — |  |  | 440 |
Total | $ | — |  |  | $ | — |  |  | $ | 440 |  |  | $ | 760 |  |  | $ | 1,200 |
(1) The residential mortgage included in the above table was contractually past due as of December 31, 2024, but was otherwise performing on its modified terms.
| Twelve Months Ended December 31, 2023
Past Due Status of Modifications under ASU 2022-02: | 30-59 Days Past Due |  | 60-89 Days Past Due |  | Greater Than 89 Days Past Due |  | Loans Not Past Due |  | Total
Commercial and industrial | $ | 875 |  |  | $ | — |  |  | $ | — |  |  | $ | 136 |  |  | $ | 1,011 |
Commercial mortgages: |  |  |  |  |  |  |  |  |
Commercial mortgages, other | — |  |  | — |  |  | — |  |  | 2,150 |  |  | 2,150 |
Consumer loans: |  |  |  |  |  |  |  |  |
Home equity lines and loans | — |  |  | — |  |  | — |  |  | 116 |  |  | 116 |
Total | $ | 875 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,402 |  |  | $ | 3,277 |
There was one commercial and industrial loan modified to a borrower experiencing financial difficulty during 2023 which sustained a payment default on its modified terms during the year ended December 31, 2024. Allocations totaling $0.7 million and $0.9 million were included for this loan in the allowance for credit losses as of December 31, 2024 and 2023, respectively. The Corporation had no outstanding commitments to lend additional amounts to borrowers for which modifications subject to ASU 2022-02 were made during the years ended December 31, 2024 and 2023. Collateral-Dependent Individually Analyzed Loans As of December 31, 2024 and 2023, the amortized cost basis of individually analyzed loans was $6.5 million and $8.0 million respectively, of which $5.1 million and $6.3 million respectively were considered collateral-dependent. For collateral-dependent loans where the borrower is experiencing financial difficulty and repayment is likely to be substantially provided through the sale or operation of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan, as of the measurement date. Certain assets held as collateral may be exposed to future deterioration in fair value, particularly due to changes in real estate markets or usage. The following table presents the amortized cost basis and related allowance for credit loss of individually analyzed loans considered to be collateral-dependent as of December 31, 2024 and 2023 (in thousands):
| December 31, 2024 |  | December 31, 2023 |  |
| Amortized Cost Basis |  | Related Allowance |  | Amortized Cost Basis |  | Related Allowance |  |  |  |
Commercial and industrial: |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial (1) (2) | $ | 130 |  |  | $ | 65 |  |  | $ | 379 |  |  | $ | 240 |  |  |  |  |
Commercial mortgages: |  |  |  |  |  |  |  |  |  |  |
Construction (1) | — |  |  | — |  |  | 2,209 |  |  | — |  |  |  |  |
Commercial mortgages, other (1) (2) (3) | 4,959 |  |  | 106 |  |  | 3,759 |  |  | 27 |  |  |  |  |
Total | $ | 5,089 |  |  | $ | 171 |  |  | $ | 6,347 |  |  | $ | 267 |  |  |  |  |
(1) Secured by commercial real estate (2) Secured by business assets (3) Secured by residential real estate The following table presents the average amortized basis in and interest income recognized on loans individually analyzed, by class, as of December 31, 2024 and 2023 (in thousands):
| December 31, 2024 |  | December 31, 2023 |  |
With no related allowance recorded: | Average Amortized Cost Basis |  | Interest Income Recognized (1) |  | Average Amortized Cost Basis |  | Interest Income Recognized (1) |  |  |  |
Commercial and industrial | $ | 102 |  |  | $ | 4 |  |  | $ | 431 |  |  | $ | — |  |  |  |  |
Commercial mortgages: |  |  |  |  |  |  |  |  |  |  |
Construction | 1,753 |  |  | — |  |  | 443 |  |  | 103 |  |  |  |  |
Commercial mortgages | 2,876 |  |  | — |  |  | 3,988 |  |  | 5 |  |  |  |  |
Residential mortgages | — |  |  | — |  |  | 288 |  |  | — |  |  |  |  |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |
Home equity lines & loans | — |  |  | — |  |  | 99 |  |  | — |  |  |  |  |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | 1,797 |  |  | 8 |  |  | 1,339 |  |  | 55 |  |  |  |  |
Commercial mortgages: |  |  |  |  |  |  |  |  |  |  |
Construction | — |  |  | — |  |  | — |  |  | — |  |  |  |  |
Commercial mortgages | 379 |  |  | — |  |  | 33 |  |  | — |  |  |  |  |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |
Home equity lines and loans | — |  |  | — |  |  | 25 |  |  | — |  |  |  |  |
Total | $ | 6,907 |  |  | $ | 12 |  |  | $ | 6,646 |  |  | $ | 163 |  |  |  |  |
(1) Cash basis interest income approximates interest income recognized. The following table presents the amortized cost basis of nonaccrual loans with no related specific allocation in the allowance for credit losses, total nonaccrual loans, and loans pasts due 90 days or greater which were still accruing, by class of loans, as of December 31, 2024 and 2023 (in thousands):
| Nonaccrual with no allowance for credit losses |  | Nonaccrual |  | Loans Past Due 90 Days or More and Still Accruing
| 2024 |  | 2023 |  | 2024 |  | 2023 |  | 2024 |  | 2023
Commercial and industrial | $ | 76 |  |  | $ | 76 |  |  | $ | 1,534 |  |  | $ | 1,930 |  |  | $ | 23 |  |  | $ | 10 |
Commercial mortgages: |  |  |  |  |  |  |  |  |  |  |
Construction | — |  |  | 2,209 |  |  | — |  |  | 2,209 |  |  | — |  |  | — |
Commercial mortgages | 3,981 |  |  | 3,732 |  |  | 4,959 |  |  | 3,760 |  |  | — |  |  | — |
Residential mortgages | 1,372 |  |  | 1,315 |  |  | 1,372 |  |  | 1,315 |  |  | — |  |  | — |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |
Home equity lines and loans | 613 |  |  | 508 |  |  | 613 |  |  | 508 |  |  | — |  |  | — |
Indirect consumer loans | 474 |  |  | 687 |  |  | 474 |  |  | 687 |  |  | — |  |  | — |
Direct consumer loans | 2 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | — |  |  | — |
Total | $ | 6,518 |  |  | $ | 8,529 |  |  | $ | 8,954 |  |  | $ | 10,411 |  |  | $ | 23 |  |  | $ | 10 |
The following tables present the aging of the amortized cost basis in loans as of December 31, 2024 and 2023 (in thousands):
| December 31, 2024
| 30 - 59 Days Past Due |  | 60-89 Days Past Due |  | Greater Than 89 Days Past Due |  | Total Past Due |  |  |  | Loans Not Past Due |  | Total
Commercial and industrial | $ | 140 |  |  | $ | 201 |  |  | $ | 702 |  |  | $ | 1,043 |  |  |  |  | $ | 298,478 |  |  | $ | 299,521 |
Commercial mortgages: |  |  |  |  |  |  |  |  |  |  |  |  |
Construction | — |  |  | — |  |  | — |  |  | — |  |  |  |  | 94,943 |  |  | 94,943 |
Commercial mortgages | 1,032 |  |  | — |  |  | 3,258 |  |  | 4,290 |  |  |  |  | 1,117,771 |  |  | 1,122,061 |
Residential mortgages | 1,529 |  |  | 662 |  |  | 696 |  |  | 2,887 |  |  |  |  | 272,092 |  |  | 274,979 |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines and loans | 231 |  |  | — |  |  | 364 |  |  | 595 |  |  |  |  | 92,625 |  |  | 93,220 |
Indirect consumer loans | 2,101 |  |  | 719 |  |  | 235 |  |  | 3,055 |  |  |  |  | 175,063 |  |  | 178,118 |
Direct consumer loans | 14 |  |  | 6 |  |  | 1 |  |  | 21 |  |  |  |  | 8,556 |  |  | 8,577 |
Total | $ | 5,047 |  |  | $ | 1,588 |  |  | $ | 5,256 |  |  | $ | 11,891 |  |  |  |  | $ | 2,059,528 |  |  | $ | 2,071,419 |
| December 31, 2023
| 30 - 59 Days Past Due |  | 60-89 Days Past Due |  | Greater Than 89 Days Past Due |  | Total Past Due |  |  |  | Loans Not Past Due |  | Total
Commercial and industrial | $ | 1,196 |  |  | $ | 31 |  |  | $ | 10 |  |  | $ | 1,237 |  |  |  |  | $ | 263,159 |  |  | $ | 264,396 |
Commercial mortgages: |  |  |  |  |  |  |  |  |  |  |  |  |
Construction | 2,164 |  |  | — |  |  | 2,207 |  |  | 4,371 |  |  |  |  | 134,516 |  |  | 138,887 |
Commercial mortgages | 1,022 |  |  | 103 |  |  | 261 |  |  | 1,386 |  |  |  |  | 982,652 |  |  | 984,038 |
Residential mortgages | 2,244 |  |  | 201 |  |  | 585 |  |  | 3,030 |  |  |  |  | 274,962 |  |  | 277,992 |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines and loans | 461 |  |  | 87 |  |  | 366 |  |  | 914 |  |  |  |  | 86,142 |  |  | 87,056 |
Indirect consumer loans | 2,473 |  |  | 501 |  |  | 426 |  |  | 3,400 |  |  |  |  | 207,023 |  |  | 210,423 |
Direct consumer loans | 2 |  |  | 20 |  |  | — |  |  | 22 |  |  |  |  | 9,850 |  |  | 9,872 |
Total | $ | 9,562 |  |  | $ | 943 |  |  | $ | 3,855 |  |  | $ | 14,360 |  |  |  |  | $ | 1,958,304 |  |  | $ | 1,972,664 |
Credit Quality Indicators The Corporation establishes a risk rating at origination for all commercial loans. The primary factors considered in assigning risk ratings include, but are not limited to: historic and future debt service coverage, collateral position, operating performance, liquidity, leverage, payment history, management ability, and the customer’s industry. Commercial relationship managers monitor all loans in their respective portfolios for any changes in the borrower’s ability to service its debt and affirm the risk ratings for the loans at least annually. For retail loans, which include residential mortgages, indirect and direct consumer loans, and home equity lines and loans, once a loan is appropriately approved and closed, the Corporation evaluates credit quality based upon loan repayment. Retail loans that have been modified subject to ASU 2022-02, but are otherwise performing, are assigned a risk rating of Special Mention, as defined below. Retail loans are not rated until they become 90 days past due or are modified under ASU 2022-02. The Corporation uses its risk rating system to identify criticized and classified loans. Commercial relationships within the criticized and classified risk ratings are analyzed quarterly. The Corporation uses the following definitions for criticized and classified loans (which are consistent with regulatory guidelines): Special Mention – Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date. Substandard – Loans classified as substandard are inadequately protected by the current net worth and paying capability of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Commercial loans not meeting the criteria above to be considered criticized or classified, are considered to be pass rated loans. Loans listed as not rated, are included in groups of homogeneous loans performing under terms of the loan notes. Based on the analyses performed as of December 31, 2024, the risk category of the amortized cost basis of loans by class of loans and vintage, as well as the gross charge-offs by loan class and vintage for the period, are as follows (in thousands):
| Term Loans - Amortized Cost by Origination Year |  | Revolving Loans Amortized Cost |  | Revolving Loans Converted to Term |  | Total
| 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  |  |
Commercial & Industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 44,130 |  |  | $ | 32,157 |  |  | $ | 34,862 |  |  | $ | 16,787 |  |  | $ | 8,326 |  |  | $ | 27,452 |  |  | $ | 108,819 |  |  | $ | 1,380 |  |  | $ | 273,913 |
Special Mention | 810 |  |  | 262 |  |  | 3,933 |  |  | — |  |  | 4,390 |  |  | 3,673 |  |  | 10,203 |  |  | 62 |  |  | 23,333 |
Substandard | 99 |  |  | — |  |  | 8 |  |  | 733 |  |  | 30 |  |  | — |  |  | 379 |  |  | 318 |  |  | 1,567 |
Doubtful | 21 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 687 |  |  | — |  |  | — |  |  | 708 |
Total | 45,060 |  |  | 32,419 |  |  | 38,803 |  |  | 17,520 |  |  | 12,746 |  |  | 31,812 |  |  | 119,401 |  |  | 1,760 |  |  | 299,521 |
Gross charge offs | — |  |  | 84 |  |  | 200 |  |  | 6 |  |  | — |  |  | — |  |  | 12 |  |  | — |  |  | 302 |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 19,344 |  |  | 46,954 |  |  | 17,568 |  |  | 9,058 |  |  | — |  |  | 1,536 |  |  | 483 |  |  | — |  |  | 94,943 |
Special Mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | 19,344 |  |  | 46,954 |  |  | 17,568 |  |  | 9,058 |  |  | — |  |  | 1,536 |  |  | 483 |  |  | — |  |  | 94,943 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial mortgages |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 120,351 |  |  | 132,539 |  |  | 294,225 |  |  | 162,843 |  |  | 107,341 |  |  | 264,306 |  |  | 6,793 |  |  | 832 |  |  | 1,089,230 |
Special Mention | — |  |  | 370 |  |  | 5,935 |  |  | 7,902 |  |  | — |  |  | 10,039 |  |  | 2,000 |  |  | — |  |  | 26,246 |
Substandard | — |  |  | 2,244 |  |  | 1,009 |  |  | 321 |  |  | 1,014 |  |  | 1,982 |  |  | — |  |  | — |  |  | 6,570 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 15 |  |  | — |  |  | — |  |  | 15 |
Total | 120,351 |  |  | 135,153 |  |  | 301,169 |  |  | 171,066 |  |  | 108,355 |  |  | 276,342 |  |  | 8,793 |  |  | 832 |  |  | 1,122,061 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential mortgages |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not rated | 21,574 |  |  | 20,257 |  |  | 55,321 |  |  | 55,152 |  |  | 64,471 |  |  | 56,708 |  |  | — |  |  | — |  |  | 273,483 |
Substandard | — |  |  | — |  |  | 85 |  |  | 771 |  |  | 220 |  |  | 420 |  |  | — |  |  | — |  |  | 1,496 |
Total | 21,574 |  |  | 20,257 |  |  | 55,406 |  |  | 55,923 |  |  | 64,691 |  |  | 57,128 |  |  | — |  |  | — |  |  | 274,979 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 21 |  |  | — |  |  | — |  |  | 21 |
Home equity lines and loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not rated | 13,833 |  |  | 10,657 |  |  | 14,094 |  |  | 4,879 |  |  | 2,503 |  |  | 10,259 |  |  | 35,015 |  |  | 1,252 |  |  | 92,492 |
Special Mention | — |  |  | — |  |  | 115 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 115 |
Substandard | — |  |  | 24 |  |  | 63 |  |  | — |  |  | — |  |  | 195 |  |  | 116 |  |  | 215 |  |  | 613 |
Total | 13,833 |  |  | 10,681 |  |  | 14,272 |  |  | 4,879 |  |  | 2,503 |  |  | 10,454 |  |  | 35,131 |  |  | 1,467 |  |  | 93,220 |
Gross charge offs | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 11 |  |  | 1 |  |  | — |  |  | 13 |
Indirect consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not rated | 37,746 |  |  | 52,480 |  |  | 67,237 |  |  | 13,266 |  |  | 4,194 |  |  | 2,726 |  |  | — |  |  | — |  |  | 177,649 |
Substandard | 75 |  |  | 157 |  |  | 107 |  |  | 79 |  |  | 11 |  |  | 40 |  |  | — |  |  | — |  |  | 469 |
Total | 37,821 |  |  | 52,637 |  |  | 67,344 |  |  | 13,345 |  |  | 4,205 |  |  | 2,766 |  |  | — |  |  | — |  |  | 178,118 |
Gross charge offs | 47 |  |  | 517 |  |  | 525 |  |  | 161 |  |  | 99 |  |  | 116 |  |  | — |  |  | — |  |  | 1,465 |
Direct consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not rated | 2,420 |  |  | 1,681 |  |  | 1,454 |  |  | 275 |  |  | 41 |  |  | 225 |  |  | 2,455 |  |  | 14 |  |  | 8,565 |
Substandard | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 10 |  |  | 2 |  |  | 12 |
Total | 2,420 |  |  | 1,681 |  |  | 1,454 |  |  | 275 |  |  | 41 |  |  | 225 |  |  | 2,465 |  |  | 16 |  |  | 8,577 |
Gross charge offs | 5 |  |  | 21 |  |  | 20 |  |  | 14 |  |  | — |  |  | 4 |  |  | 8 |  |  | — |  |  | 72 |
| — |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |
Total loans | $ | 260,403 |  |  | $ | 299,782 |  |  | $ | 496,016 |  |  | $ | 272,066 |  |  | $ | 192,541 |  |  | $ | 380,263 |  |  | $ | 166,273 |  |  | $ | 4,075 |  |  | $ | 2,071,419 |
Total Gross charge-offs | $ | 52 |  |  | $ | 622 |  |  | $ | 746 |  |  | $ | 181 |  |  | $ | 99 |  |  | $ | 152 |  |  | $ | 21 |  |  | $ | — |  |  | $ | 1,873 |
Based on the analyses performed as of December 31, 2023, the risk category of the amortized cost basis of loans by class of loans and vintage, as well as the gross charge-offs by loan class and vintage for the period, are as follows (in thousands):
| Term Loans - Amortized Cost by Origination Year |  | Revolving Loans Amortized Cost |  | Revolving Loans Converted to Term |  | Total
| 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  |  |
Commercial & Industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 41,925 |  |  | $ | 40,579 |  |  | $ | 21,892 |  |  | $ | 13,541 |  |  | $ | 31,233 |  |  | $ | 10,523 |  |  | $ | 77,241 |  |  | $ | 1,662 |  |  | $ | 238,596 |
Special Mention | 185 |  |  | 4,608 |  |  | — |  |  | 4,020 |  |  | — |  |  | 4,690 |  |  | 9,137 |  |  | 482 |  |  | 23,122 |
Substandard | — |  |  | 24 |  |  | 991 |  |  | 109 |  |  | 23 |  |  | 456 |  |  | — |  |  | 161 |  |  | 1,764 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 790 |  |  | 75 |  |  | 49 |  |  | 914 |
Total | 42,110 |  |  | 45,211 |  |  | 22,883 |  |  | 17,670 |  |  | 31,256 |  |  | 16,459 |  |  | 86,453 |  |  | 2,354 |  |  | 264,396 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | 9 |  |  | 272 |  |  | — |  |  | — |  |  | 281 |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 46,951 |  |  | 68,483 |  |  | 19,066 |  |  | — |  |  | 28 |  |  | 1,669 |  |  | 481 |  |  | — |  |  | 136,678 |
Special Mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard | — |  |  | — |  |  | — |  |  | — |  |  | 2,207 |  |  | 2 |  |  | — |  |  | — |  |  | 2,209 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | 46,951 |  |  | 68,483 |  |  | 19,066 |  |  | — |  |  | 2,235 |  |  | 1,671 |  |  | 481 |  |  | — |  |  | 138,887 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial mortgages |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 110,864 |  |  | 260,763 |  |  | 161,858 |  |  | 113,198 |  |  | 57,782 |  |  | 244,211 |  |  | 5,197 |  |  | 767 |  |  | 954,640 |
Special Mention | — |  |  | 2,533 |  |  | 8,189 |  |  | 2,609 |  |  | — |  |  | 8,642 |  |  | — |  |  | — |  |  | 21,973 |
Substandard | 272 |  |  | 1,107 |  |  | 345 |  |  | 1,022 |  |  | — |  |  | 4,555 |  |  | 97 |  |  | — |  |  | 7,398 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 27 |  |  | — |  |  | — |  |  | 27 |
Total | 111,136 |  |  | 264,403 |  |  | 170,392 |  |  | 116,829 |  |  | 57,782 |  |  | 257,435 |  |  | 5,294 |  |  | 767 |  |  | 984,038 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential mortgages |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not rated | 18,653 |  |  | 58,098 |  |  | 60,024 |  |  | 71,369 |  |  | 15,948 |  |  | 52,585 |  |  | — |  |  | — |  |  | 276,677 |
Substandard | — |  |  | 75 |  |  | 346 |  |  | — |  |  | 169 |  |  | 725 |  |  | — |  |  | — |  |  | 1,315 |
Total | 18,653 |  |  | 58,173 |  |  | 60,370 |  |  | 71,369 |  |  | 16,117 |  |  | 53,310 |  |  | — |  |  | — |  |  | 277,992 |
Gross charge offs | — |  |  | 32 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 32 |
Home equity lines and loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not rated | 13,552 |  |  | 16,384 |  |  | 5,821 |  |  | 3,134 |  |  | 2,867 |  |  | 10,400 |  |  | 33,275 |  |  | 1,115 |  |  | 86,548 |
Substandard | — |  |  | 77 |  |  | — |  |  | — |  |  | — |  |  | 293 |  |  | 25 |  |  | 113 |  |  | 508 |
Total | 13,552 |  |  | 16,461 |  |  | 5,821 |  |  | 3,134 |  |  | 2,867 |  |  | 10,693 |  |  | 33,300 |  |  | 1,228 |  |  | 87,056 |
Gross charge offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6 |  |  | — |  |  | 6 |
Indirect consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not rated | 72,264 |  |  | 98,008 |  |  | 23,015 |  |  | 9,192 |  |  | 3,870 |  |  | 3,387 |  |  | — |  |  | — |  |  | 209,736 |
Substandard | 119 |  |  | 246 |  |  | 135 |  |  | 48 |  |  | 36 |  |  | 103 |  |  | — |  |  | — |  |  | 687 |
Total | 72,383 |  |  | 98,254 |  |  | 23,150 |  |  | 9,240 |  |  | 3,906 |  |  | 3,490 |  |  | — |  |  | — |  |  | 210,423 |
Gross charge offs | 184 |  |  | 375 |  |  | 215 |  |  | 121 |  |  | 21 |  |  | 55 |  |  | — |  |  | — |  |  | 971 |
Direct consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not rated | 3,005 |  |  | 2,745 |  |  | 785 |  |  | 256 |  |  | 53 |  |  | 324 |  |  | 2,697 |  |  | 5 |  |  | 9,870 |
Substandard | — |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2 |
Total | 3,005 |  |  | 2,745 |  |  | 785 |  |  | 258 |  |  | 53 |  |  | 324 |  |  | 2,697 |  |  | 5 |  |  | 9,872 |
Gross charge offs | 4 |  |  | 15 |  |  | 8 |  |  | 6 |  |  | — |  |  | 54 |  |  | 6 |  |  | — |  |  | 93 |
| — |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |
Total loans | $ | 307,790 |  |  | $ | 553,730 |  |  | $ | 302,467 |  |  | $ | 218,500 |  |  | $ | 114,216 |  |  | $ | 343,382 |  |  | $ | 128,225 |  |  | $ | 4,354 |  |  | $ | 1,972,664 |
Total Gross charge-offs | $ | 188 |  |  | $ | 422 |  |  | $ | 223 |  |  | $ | 127 |  |  | $ | 30 |  |  | $ | 381 |  |  | $ | 12 |  |  | $ | — |  |  | $ | 1,383 |

X
- References No definition available. + Details
Name: | us-gaap_LoansAndLeasesReceivableDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration