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LOANS AND ALLOWANCE FOR CREDIT LOSSES | 3 Months Ended
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Mar. 31, 2025
Credit Loss [Abstract] |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | LOANS AND ALLOWANCE FOR CREDIT LOSSES The composition of the loan portfolio, net of deferred origination fees and costs, is summarized as follows (in thousands):
|  | March 31, 2025 |  | December 31, 2024
Commercial and industrial |  | $ | 295,732 |  |  | $ | 299,521 |
Commercial mortgages: |  |  |  |
Construction |  | 95,671 |  |  | 94,943 |
Owner occupied commercial real estate |  | 155,027 |  |  | 142,279 |
Non-owner occupied commercial real estate |  | 1,009,558 |  |  | 979,782 |
Residential mortgages |  | 275,448 |  |  | 274,979 |
Consumer loans: |  |  |  |
Home equity lines and loans |  | 93,914 |  |  | 93,220 |
Indirect consumer loans |  | 164,594 |  |  | 178,118 |
Direct consumer loans |  | 7,692 |  |  | 8,577 |
Total loans, net of deferred loan fees and costs |  | 2,097,636 |  |  | 2,071,419 |
Allowance for credit losses |  | (22,522) |  |  | (21,388) |
Loans, net |  | $ | 2,075,114 |  |  | $ | 2,050,031 |
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 totaled $7.9 million as of March 31, 2025 and $8.0 million as of December 31, 2024. 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. Owner occupied commercial real estate and non-owner occupied commercial real estate were previously presented as a combined loan category, commercial mortgages, other. Prior period information included in this Note has been disaggregated to reflect these standalone categories. The previously presented commercial mortgages, other loan category totaled $1.16 billion and $1.12 billion as of March 31, 2025 and December 31, 2024, respectively. The following tables present the activity in the allowance for credit losses by portfolio segment for the three month periods ended March 31, 2025 and 2024 (in thousands):
| Three Months Ended March 31, 2025
Allowance for credit losses | Commercial and Industrial |  | Commercial Mortgages |  | Residential Mortgages |  | Consumer Loans |  | Total
Beginning balance, January 1, 2025 | $ | 4,520 |  |  | $ | 11,214 |  |  | $ | 2,259 |  |  | $ | 3,395 |  |  | $ | 21,388 |
Charge-offs | (5) |  |  | — |  |  | — |  |  | (393) |  |  | (398) |
Recoveries | 4 |  |  | 1 |  |  | 5 |  |  | 126 |  |  | 136 |
Net recoveries (charge-offs) | (1) |  |  | 1 |  |  | 5 |  |  | (267) |  |  | (262) |
Provision (1) | 634 |  |  | 874 |  |  | 209 |  |  | (321) |  |  | 1,396 |
Ending balance, March 31, 2025 | $ | 5,153 |  |  | $ | 12,089 |  |  | $ | 2,473 |  |  | $ | 2,807 |  |  | $ | 22,522 |
(1)Additional provision related to off-balance sheet exposure was a credit of $304 thousand for the three months ended March 31, 2025.
| Three Months Ended March 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 | — |  |  | — |  |  | (16) |  |  | (351) |  |  | (367) |
Recoveries | 37 |  |  | 1 |  |  | 22 |  |  | 125 |  |  | 185 |
Net recoveries (charge-offs) | 37 |  |  | 1 |  |  | 6 |  |  | (226) |  |  | (182) |
Provision (1) | (576) |  |  | (1,660) |  |  | (138) |  |  | 510 |  |  | (1,864) |
Ending balance, March 31, 2024 | $ | 4,516 |  |  | $ | 10,367 |  |  | $ | 2,062 |  |  | $ | 3,526 |  |  | $ | 20,471 |
(1)Additional provision related to off-balance sheet exposure was a credit of $176 thousand for the three months ended March 31, 2024. The Corporation performs an annual update to the loss drivers used in modeling its estimate of the allowance for credit losses. Annual updates for the model were completed during the three month periods ended March 31, 2025 and 2024. Unfunded Commitments The allowance for credit losses on unfunded commitments is recognized as a liability, and included in the accrued interest payable and other liabilities line item on the Corporation's Consolidated Balance Sheets, with adjustments to the allowance recognized in the provision for credit losses 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 three month periods ended March 31, 2025 and 2024 (in thousands):
| For the Three Months Ended |  |
Allowance for credit losses on unfunded commitments | March 31, 2025 |  | March 31, 2024 |  |  |  |
Beginning balance | $ | 842 |  |  | $ | 919 |  |  |  |  |
Provision for credit losses on unfunded commitments | (304) |  |  | (176) |  |  |  |  |
Ending balance | $ | 538 |  |  | $ | 743 |  |  |  |  |
The following table presents the provision for credit losses on loans and unfunded commitments for the three month periods ended March 31, 2025 and 2024 (in thousands):
|  | For the Three Months Ended |  |
| Provision for credit losses | March 31, 2025 |  | March 31, 2024 |  |  |  |
| Provision for credit losses on loans | $ | 1,396 |  |  | $ | (1,864) |  |  |  |  |
| Provision for credit losses on unfunded commitments | (304) |  |  | (176) |  |  |  |  |
| Total provision for credit losses | $ | 1,092 |  |  | $ | (2,040) |  |  |  |  |
The following tables present the balance in the allowance for credit losses by portfolio segment, as of March 31, 2025 and December 31, 2024 (in thousands):
| March 31, 2025
Allowance for credit losses | Commercial and Industrial |  | Commercial Mortgages |  | Residential Mortgages |  | Consumer Loans |  | Total
Ending allowance balance attributable to loans: |  |  |  |
Individually analyzed | $ | 1,514 |  |  | $ | 140 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,654 |
Collectively analyzed | 3,639 |  |  | 11,949 |  |  | 2,473 |  |  | 2,807 |  |  | 20,868 |
Total ending allowance balance | $ | 5,153 |  |  | $ | 12,089 |  |  | $ | 2,473 |  |  | $ | 2,807 |  |  | $ | 22,522 |
| December 31, 2024
Allowance for credit losses | Commercial and Industrial |  | Commercial Mortgages |  | Residential Mortgages |  | Consumer Loans |  | Totals
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 |
The following tables present the amortized cost basis of loans by portfolio segment, as of March 31, 2025 and December 31, 2024 (in thousands):
| March 31, 2025
Amortized cost basis of loans: | Commercial and Industrial |  | Commercial Mortgages |  | Residential Mortgages |  | Consumer Loans |  | Total
Individually analyzed | $ | 1,676 |  |  | $ | 4,692 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,368 |
Collectively analyzed | 294,056 |  |  | 1,255,564 |  |  | 275,448 |  |  | 266,200 |  |  | 2,091,268 |
Total ending loans balance | $ | 295,732 |  |  | $ | 1,260,256 |  |  | $ | 275,448 |  |  | $ | 266,200 |  |  | $ | 2,097,636 |
| December 31, 2024
Amortized cost basis of loans: | Commercial and Industrial |  | Commercial Mortgages |  | Residential Mortgages |  | Consumer Loans |  | Total
Individually analyzed | $ | 1,512 |  |  | $ | 4,959 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,471 |
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 |
Modifications to Loans Made to Borrowers Experiencing Financial Difficulty The Corporation may occasionally make modifications to loans where the borrower is considered to be experiencing financial difficulty, and which may require disclosure in accordance with Financial Instruments-Credit Losses (Topic 326)-Troubled Debt Restructurings and Vintage Disclosures. Types of modifications considered under ASU 2022-02 include principal reductions, interest rate reductions, term extensions, significant payment delays, or a combination thereof. There were no loan modifications made to borrowers experiencing financial difficulty in the three month periods ended March 31, 2025 and 2024. There were no loans that experienced a payment default within twelve months of modification during the three month period ended March 31, 2025. During the three month period ended March 31, 2024, the Corporation had one loan, a commercial and industrial loan which was given a six month term extension during the three month period ended September 30, 2023, which experienced a payment default within twelve months of modification. The Corporation monitors the performance of loans that have previously been modified under the guidance of ASU 2022-02 in order to gauge the effectiveness of 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 March 31, 2025 and March 31, 2024 (in thousands):
| Twelve Months Ended March 31, 2025 |  |  |  |  |  |
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 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 367 |  |  | $ | 367 |  |  |  |  |  |  |
Commercial mortgages: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied commercial real estate | — |  |  | — |  |  | — |  |  | 374 |  |  | 374 |  |  |  |  |  |  |
Residential mortgages | — |  |  | — |  |  | — |  |  | 436 |  |  | 436 |  |  |  |  |  |  |
Total | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,177 |  |  | $ | 1,177 |  |  |  |  |  |  |
| Twelve Months Ended March 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 | $ | — |  |  | $ | — |  |  | $ | 675 |  |  | $ | 129 |  |  | $ | 804 |  |  |  |  |  |  |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines and loans | — |  |  | — |  |  | — |  |  | 116 |  |  | 116 |  |  |  |  |  |  |
Total | $ | — |  |  | $ | — |  |  | $ | 675 |  |  | $ | 245 |  |  | $ | 920 |  |  |  |  |  |  |
During the three months ended March 31, 2024, a non-owner occupied commercial mortgage that was granted a payment delay during the three months ended June 30, 2023 executed an early payoff. The amortized basis of the loan prior to the payoff was $1.9 million. Collateral-Dependent Individually Analyzed Loans As of March 31, 2025, the amortized cost basis of individually analyzed loans totaled $6.4 million, of which $5.0 million were considered collateral-dependent, and as of December 31, 2024, the amortized cost basis of individually analyzed loans totaled $6.5 million, of which $5.1 million 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 allowance for credit losses 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 Corporation closely monitors trends in real estate values throughout its market area to determine whether collateral values, after appropriate discounting, are likely to be sufficient to extinguish existing borrower indebtedness. 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 March 31, 2025 and December 31, 2024 (in thousands):
| March 31, 2025 |  | December 31, 2024
| Amortized Cost Basis |  | Related Allowance |  | Amortized Cost Basis |  | Related Allowance
Commercial and industrial (3) | $ | 320 |  |  | $ | 159 |  |  | $ | 130 |  |  | $ | 65 |
Commercial mortgages: |  |  |  |  |  |  |
Owner occupied commercial real estate (1) (2) | 1,342 |  |  | 12 |  |  | 1,377 |  |  | 15 |
Non-owner occupied commercial real estate (1) (2) | 3,350 |  |  | 128 |  |  | 3,582 |  |  | 91 |
Total | $ | 5,012 |  |  | $ | 299 |  |  | $ | 5,089 |  |  | $ | 171 |
(1) Secured by commercial real estate (2) Secured by residential real estate (3) Secured by business assets The following table presents the amortized cost basis of nonaccrual loans without an associated allocation in the allowance for credit losses, total nonaccrual loans, and loans past due greater than 90 days and still accruing, by class of loan as of March 31, 2025 and December 31, 2024 (in thousands):
| Nonaccrual with No Allowance for Credit Losses |  | Nonaccrual |  | Loans Past Due 90 Days or More and Still Accruing
| March 31, 2025 |  | December 31, 2024 |  | March 31, 2025 |  | December 31, 2024 |  | March 31, 2025 |  | December 31, 2024
Commercial and industrial | $ | 74 |  |  | $ | 76 |  |  | $ | 1,697 |  |  | $ | 1,534 |  |  | $ | 24 |  |  | $ | 23 |
Commercial mortgages: |  |  |  |  |  |  |  |  |  |  |
Construction | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Owner occupied commercial real estate | 1,330 |  |  | 1,362 |  |  | 1,342 |  |  | 1,377 |  |  | — |  |  | — |
Non-owner occupied commercial real estate | 1,183 |  |  | 2,619 |  |  | 3,350 |  |  | 3,582 |  |  | — |  |  | — |
Residential mortgages | 1,697 |  |  | 1,372 |  |  | 1,697 |  |  | 1,372 |  |  | — |  |  | — |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |
Home equity lines and loans | 1,034 |  |  | 613 |  |  | 1,034 |  |  | 613 |  |  | — |  |  | — |
Indirect consumer loans | 712 |  |  | 474 |  |  | 712 |  |  | 474 |  |  | — |  |  | — |
Direct consumer loans | 49 |  |  | 2 |  |  | 49 |  |  | 2 |  |  | — |  |  | — |
Total | $ | 6,079 |  |  | $ | 6,518 |  |  | $ | 9,881 |  |  | $ | 8,954 |  |  | $ | 24 |  |  | $ | 23 |
There was an immaterial amount of interest income recognized on nonaccrual loans for the three month periods ended March 31, 2025 and 2024. Payments received on nonaccrual loans are generally applied to principal using the cost recovery method. The following tables present the aging of the amortized cost basis of loans as of March 31, 2025 and December 31, 2024 (in thousands):
| March 31, 2025
| 30 - 59 Days Past Due |  | 60 - 89 Days Past Due |  | 90 Days or More Past Due |  | Total Past Due |  |  |  | Loans Not Past Due |  | Total
Commercial and industrial | $ | 854 |  |  | $ | 38 |  |  | $ | 914 |  |  | $ | 1,806 |  |  |  |  | $ | 293,926 |  |  | $ | 295,732 |
Commercial mortgages: |  |  |  |  |  |  |  |  |  |  |  |  |
Construction | 2,159 |  |  | — |  |  | — |  |  | 2,159 |  |  |  |  | 93,512 |  |  | 95,671 |
Owner occupied commercial real estate | 425 |  |  | — |  |  | 96 |  |  | 521 |  |  |  |  | 154,506 |  |  | 155,027 |
Non-owner occupied commercial real estate | — |  |  | — |  |  | 3,181 |  |  | 3,181 |  |  |  |  | 1,006,377 |  |  | 1,009,558 |
Residential mortgages | 2,769 |  |  | — |  |  | 337 |  |  | 3,106 |  |  |  |  | 272,342 |  |  | 275,448 |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines and loans | 341 |  |  | — |  |  | 640 |  |  | 981 |  |  |  |  | 92,933 |  |  | 93,914 |
Indirect consumer loans | 1,819 |  |  | 291 |  |  | 281 |  |  | 2,391 |  |  |  |  | 162,203 |  |  | 164,594 |
Direct consumer loans | 8 |  |  | 6 |  |  | 15 |  |  | 29 |  |  |  |  | 7,663 |  |  | 7,692 |
Total | $ | 8,375 |  |  | $ | 335 |  |  | $ | 5,464 |  |  | $ | 14,174 |  |  |  |  | $ | 2,083,462 |  |  | $ | 2,097,636 |
| December 31, 2024
| 30 - 59 Days Past Due |  | 60 - 89 Days Past Due |  | 90 Days or More 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 |
Owner occupied commercial real estate | 82 |  |  | — |  |  | 96 |  |  | 178 |  |  |  |  | 142,101 |  |  | 142,279 |
Non-owner occupied commercial real estate | 950 |  |  | — |  |  | 3,162 |  |  | 4,112 |  |  |  |  | 975,670 |  |  | 979,782 |
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 |
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 properly 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 the 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 March 31, 2025, the amortized cost basis of loans by class, risk category, and vintage, as well as gross charge-offs by class and vintage for the three month period ended March 31, 2025, were as follows (in thousands):
| Term Loans Amortized Cost by Origination Year |  | Revolving Loans Amortized Cost |  | Revolving Loans Converted to Term |  | Total
| 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  |  |
Commercial & industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 13,238 |  |  | $ | 39,353 |  |  | $ | 30,511 |  |  | $ | 33,249 |  |  | $ | 15,512 |  |  | $ | 29,362 |  |  | $ | 106,238 |  |  | $ | 2,427 |  |  | $ | 269,890 |
Special mention | — |  |  | 664 |  |  | 429 |  |  | 4,112 |  |  | 450 |  |  | 7,801 |  |  | 7,124 |  |  | 2,650 |  |  | 23,230 |
Substandard | — |  |  | 367 |  |  | — |  |  | 4 |  |  | 730 |  |  | — |  |  | 520 |  |  | 309 |  |  | 1,930 |
Doubtful | — |  |  | 21 |  |  | — |  |  | — |  |  | — |  |  | 661 |  |  | — |  |  | — |  |  | 682 |
Total | 13,238 |  |  | 40,405 |  |  | 30,940 |  |  | 37,365 |  |  | 16,692 |  |  | 37,824 |  |  | 113,882 |  |  | 5,386 |  |  | 295,732 |
Gross charge-offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5 |  |  | — |  |  | 5 |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 5,033 |  |  | 21,401 |  |  | 39,868 |  |  | 18,406 |  |  | 8,996 |  |  | 1,484 |  |  | 483 |  |  | — |  |  | 95,671 |
Special mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | 5,033 |  |  | 21,401 |  |  | 39,868 |  |  | 18,406 |  |  | 8,996 |  |  | 1,484 |  |  | 483 |  |  | — |  |  | 95,671 |
Gross charge-offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Owner occupied commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 13,848 |  |  | 23,872 |  |  | 20,294 |  |  | 24,369 |  |  | 20,101 |  |  | 38,794 |  |  | 896 |  |  | 51 |  |  | 142,225 |
Special mention | — |  |  | — |  |  | 2,802 |  |  | 2,220 |  |  | 692 |  |  | 2,771 |  |  | 2,000 |  |  | — |  |  | 10,485 |
Substandard | — |  |  | — |  |  | 96 |  |  | 841 |  |  | 317 |  |  | 1,051 |  |  | — |  |  | — |  |  | 2,305 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 12 |  |  | — |  |  | — |  |  | 12 |
Total | 13,848 |  |  | 23,872 |  |  | 23,192 |  |  | 27,430 |  |  | 21,110 |  |  | 42,628 |  |  | 2,896 |  |  | 51 |  |  | 155,027 |
Gross charge-offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Non-owner occupied commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 33,419 |  |  | 101,231 |  |  | 111,244 |  |  | 263,465 |  |  | 140,798 |  |  | 321,071 |  |  | 7,366 |  |  | 764 |  |  | 979,358 |
Special mention | — |  |  | — |  |  | 3,586 |  |  | 7,225 |  |  | 7,690 |  |  | 7,734 |  |  | — |  |  | — |  |  | 26,235 |
Substandard | — |  |  | — |  |  | 2,167 |  |  | 142 |  |  | — |  |  | 1,656 |  |  | — |  |  | — |  |  | 3,965 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | 33,419 |  |  | 101,231 |  |  | 116,997 |  |  | 270,832 |  |  | 148,488 |  |  | 330,461 |  |  | 7,366 |  |  | 764 |  |  | 1,009,558 |
Gross charge-offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential mortgages |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not rated | 5,205 |  |  | 23,364 |  |  | 20,232 |  |  | 54,173 |  |  | 54,150 |  |  | 116,497 |  |  | — |  |  | — |  |  | 273,621 |
Substandard | — |  |  | — |  |  | — |  |  | 85 |  |  | 625 |  |  | 1,117 |  |  | — |  |  | — |  |  | 1,827 |
Total | 5,205 |  |  | 23,364 |  |  | 20,232 |  |  | 54,258 |  |  | 54,775 |  |  | 117,614 |  |  | — |  |  | — |  |  | 275,448 |
Gross charge-offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Home equity lines and loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not rated | 3,099 |  |  | 13,445 |  |  | 10,074 |  |  | 12,938 |  |  | 4,668 |  |  | 12,109 |  |  | 35,303 |  |  | 1,130 |  |  | 92,766 |
Special mention | — |  |  | — |  |  | — |  |  | 114 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 114 |
Substandard | — |  |  | — |  |  | 23 |  |  | 176 |  |  | — |  |  | 190 |  |  | 96 |  |  | 549 |  |  | 1,034 |
Total | 3,099 |  |  | 13,445 |  |  | 10,097 |  |  | 13,228 |  |  | 4,668 |  |  | 12,299 |  |  | 35,399 |  |  | 1,679 |  |  | 93,914 |
Gross charge-offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Indirect consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not rated | 4,918 |  |  | 35,199 |  |  | 47,215 |  |  | 59,984 |  |  | 11,299 |  |  | 5,243 |  |  | — |  |  | — |  |  | 163,858 |
Substandard | — |  |  | 102 |  |  | 292 |  |  | 232 |  |  | 58 |  |  | 52 |  |  | — |  |  | — |  |  | 736 |
Total | 4,918 |  |  | 35,301 |  |  | 47,507 |  |  | 60,216 |  |  | 11,357 |  |  | 5,295 |  |  | — |  |  | — |  |  | 164,594 |
Gross charge-offs | — |  |  | 57 |  |  | 178 |  |  | 82 |  |  | 34 |  |  | 28 |  |  | — |  |  | — |  |  | 379 |
Direct consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not rated | 494 |  |  | 2,064 |  |  | 1,346 |  |  | 1,181 |  |  | 192 |  |  | 226 |  |  | 2,157 |  |  | 7 |  |  | 7,667 |
Substandard | — |  |  | — |  |  | 7 |  |  | — |  |  | — |  |  | — |  |  | 10 |  |  | 8 |  |  | 25 |
Total | 494 |  |  | 2,064 |  |  | 1,353 |  |  | 1,181 |  |  | 192 |  |  | 226 |  |  | 2,167 |  |  | 15 |  |  | 7,692 |
Gross charge-offs | — |  |  | — |  |  | 8 |  |  | — |  |  | 3 |  |  | 1 |  |  | 2 |  |  | — |  |  | 14 |
Total loans | $ | 79,254 |  |  | $ | 261,083 |  |  | $ | 290,186 |  |  | $ | 482,916 |  |  | $ | 266,278 |  |  | $ | 547,831 |  |  | $ | 162,193 |  |  | $ | 7,895 |  |  | $ | 2,097,636 |
Total gross charge-offs | $ | — |  |  | $ | 57 |  |  | $ | 186 |  |  | $ | 82 |  |  | $ | 37 |  |  | $ | 29 |  |  | $ | 7 |  |  | $ | — |  |  | $ | 398 |
Based on the analyses performed as of December 31, 2024, the amortized cost basis of loans by class, risk category, and vintage, as well as gross charge-offs by class and vintage for the year ended December 31, 2024, were 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 | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Owner occupied commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 23,196 |  |  | 23,185 |  |  | 26,945 |  |  | 20,979 |  |  | 9,513 |  |  | 31,222 |  |  | 97 |  |  | 55 |  |  | 135,192 |
Special mention | — |  |  | 370 |  |  | — |  |  | 109 |  |  | — |  |  | 2,206 |  |  | 2,000 |  |  | — |  |  | 4,685 |
Substandard | — |  |  | 96 |  |  | 863 |  |  | 321 |  |  | — |  |  | 1,107 |  |  | — |  |  | — |  |  | 2,387 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 15 |  |  | — |  |  | — |  |  | 15 |
Total | 23,196 |  |  | 23,651 |  |  | 27,808 |  |  | 21,409 |  |  | 9,513 |  |  | 34,550 |  |  | 2,097 |  |  | 55 |  |  | 142,279 |
Gross charge-offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Non-owner occupied commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 97,155 |  |  | 109,354 |  |  | 267,280 |  |  | 141,864 |  |  | 97,828 |  |  | 233,084 |  |  | 6,696 |  |  | 777 |  |  | 954,038 |
Special mention | — |  |  | — |  |  | 5,935 |  |  | 7,793 |  |  | — |  |  | 7,833 |  |  | — |  |  | — |  |  | 21,561 |
Substandard | — |  |  | 2,148 |  |  | 146 |  |  | — |  |  | 1,014 |  |  | 875 |  |  | — |  |  | — |  |  | 4,183 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | 97,155 |  |  | 111,502 |  |  | 273,361 |  |  | 149,657 |  |  | 98,842 |  |  | 241,792 |  |  | 6,696 |  |  | 777 |  |  | 979,782 |
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 |

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