Set forth below is selected data relating to the composition of the loan portfolio at the dates indicated (dollars in thousands):

Foreclosed assets acquired in settlement of loans are carried at fair value less estimated costs to sell and are included in foreclosed real estate owned on the Consolidated Balance Sheets. As of March 31, 2025 and December 31, 2024, foreclosed real estate owned totaled $0 and $0, respectively. During the three months ended March 31, 2025, there were no additions to the foreclosed real estate category. As of March 31, 2025, the Company has initiated formal foreclosure proceedings on 7 properties classified as consumer residential mortgages with an aggregate carrying value of $374,000.

The following tables show the amount of loans in each category that were individually and collectively evaluated for credit loss:



	Real Estate Loans
									Commercial			Other	Consumer
	Residential		Commercial			Agricultural	Construction		Loans			Agricultural	Loans		Total
March 31, 2025	(In thousands)
Individually evaluated	$	838	$	7,194	$	—	$	11	$	847	$	10	$	1,200	$	10,100
Collectively evaluated		329,450		723,962		63,213		58,215		232,632		27,627		326,483		1,761,582
Total Loans	$	330,288	$	731,156	$	63,213	$	58,226	$	233,479	$	27,637	$	327,683	$	1,771,682



	Real Estate Loans
									Commercial			Other	Consumer
	Residential		Commercial			Agricultural	Construction		Loans			Agricultural	Loans		Total
	(In thousands)
December 31, 2024
Individually evaluated	$	940	$	7,197	$	—	$	—	$	854	$	—	$	1,031	$	10,022
Collectively evaluated		329,916		709,678		63,488		53,020		211,137		30,077		306,744		1,704,060
Total Loans	$	330,856	$	716,875	$	63,488	$	53,020	$	211,991	$	30,077	$	307,775	$	1,714,082

Management uses an eight point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first four categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are considered Substandard. Any portion of a loan that has been charged off is placed in the Loss category.

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as nonperformance, repossession, or death occurs to raise awareness of a possible credit event. The Company’s Loan Review Department is responsible for the timely and accurate risk rating of the loans on an ongoing basis. Every credit which must be approved by Loan Committee or the Board of Directors is assigned a risk rating at time of consideration. Loan Review, in conjunction with a third-party consultant, also annually reviews all criticized credits and relationships of $1,500,000 and over to re-affirm risk ratings.

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of March 31, 2025 and December 31, 2024 (in thousands):



	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing			Non-accrual	Total Past Due and Non-Accrual		Total Loans
March 31, 2025
Real Estate loans
Residential	$	328,882	$	313	$	255	$	-	$	838	$	1,406	$	330,288
Commercial		723,861		945		611		-		5,739		7,295		731,156
Agricultural		62,608		605		-		-		-		605		63,213
Construction		58,215		-		-		11		-		11		58,226
Commercial loans		233,009		280		37		-		153		470		233,479
Other agricultural loans		27,463		164		-		10		-		174		27,637
Consumer loans		325,548		597		338		-		1,200		2,135		327,683
Total	$	1,759,586	$	2,904	$	1,241	$	21	$	7,930	$	12,096	$	1,771,682



	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing			Non-accrual	Total Past Due and Non-Accrual			Total Loans
December 31, 2024
Real Estate loans
Residential	$	329,578	$	70	$	268	$	-	$	940	$	1,278	$	330,856
Commercial		709,821		1,182		129		-		5,743		7,054		716,875
Agricultural		63,488		-		-				-		-		63,488
Construction		53,009		11		-		-		-		11		53,020
Commercial loans		211,520		194		117		33		127		471		211,991
Other agricultural loans		30,028		49		-				-		49		30,077
Consumer loans		305,676		805		263		121		910		2,099		307,775
Total	$	1,703,120	$	2,311	$	777	$	154	$	7,720	$	10,962	$	1,714,082

Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the allowance for credit losses. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the allowance.

The following table presents the allowance for credit losses by the classes of the loan portfolio:


(In thousands)	Residential Real Estate		Commercial Real Estate			Agricultural		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, December 31, 2024	$	1,146	$	11,406	$	48	$	884	$	1,732	$	162	$	4,465	$	19,843
Charge Offs		-		(49)		-		-		-		(38)		(329)		(416)
Recoveries		-		-		-		-		54		-		38		92
(Release of) Provision for credit losses		(131)		(772)		33		101		186		45		1,461		923
Ending balance, March 31, 2025	$	1,015	$	10,585	$	81	$	985	$	1,972	$	169	$	5,635	$	20,442
Ending balance individually evaluated	$	-	$	315	$	-	$	-	$	-	$	11	$	329	$	655
Ending balance collectively evaluated	$	1,015	$	10,270	$	81	$	985	$	1,972	$	158	$	5,306	$	19,787



(In thousands)	Residential Real Estate		Commercial Real Estate			Agricultural		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, December 31, 2023	$	1,351	$	11,871	$	58	$	933	$	1,207	$	94	$	3,454	$	18,968
Charge Offs		-		-		-		-		(55)		-		(439)		(494)
Recoveries		42		102		-		-		—		-		27		171
(Release of) Provision for credit losses		(196)		(2,142)		26		(102)		835		74		880		(625)
Ending balance, March 31, 2024	$	1,197	$	9,831	$	84	$	831	$	1,987	$	168	$	3,922	$	18,020
Ending balance individually evaluated ‎for impairment	$	-	$	-	$	-	$	-	$	-	$	-	$	69	$	69
Ending balance collectively evaluated ‎for impairment	$	1,197	$	9,831	$	84	$	831	$	1,987	$	168	$	3,853	$	17,951

During the three months ended March 31, 2025, the Company recorded a provision for credit losses related to loans totaling $923,000. Factors impacting the provision include changes in the cumulative loss rates applied to the respective loan pools due to loss activity being added or subtracted with the passage of time, and variances in Qualitative Factors and Economic Factors.

The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company’s historical loss experience. The Company chose to apply qualitative factors based on “quantitative metrics” which link the quantifiable metrics to historical changes in the qualitative factor categories. The Company also chose to apply economic projections to the model. A select group of economic indicators was utilized which was then correlated to the historical loss experience of the Company and its peers. Based on the correlation results, the economic adjustments are then weighted for relevancy and applied to the individual loan pools.

The following table presents the carrying value of loans on nonaccrual status and loans past due over 90 days still accruing interest (in thousands):


		Nonaccrual		Nonaccrual				Loans Past Due
		with no		with		Total		Over 90 Days		Total
	ACL		ACL		Nonaccrual		Still Accruing		Nonperforming
March 31, 2025
Real Estate loans
Residential	$	838	$	-	$	838	$	-	$	838
Commercial		5,718		21		5,739		-		5,739
Agricultural		-		-		-		-		-
Construction		-		-		-		11		11
Commercial loans		153		-		153		-		153
Other agricultural loans		-		-		-		10		10
Consumer loans		237		963		1,200		-		1,200
Total	$	6,946	$	984	$	7,930	$	21	$	7,951


		Nonaccrual		Nonaccrual				Loans Past Due
		with no		with		Total		Over 90 Days		Total
	ACL		ACL		Nonaccrual		Still Accruing		Nonperforming
December 31, 2024
Real Estate loans
Residential	$	936	$	4	$	940	$	-	$	940
Commercial		5,739		4		5,743		-		5,743
Agricultural		-		-		-		-		-
Construction		-		-		-		-		-
Commercial loans		127		-		127		33		160
Other agricultural loans		-		-		-		-		-
Consumer loans		570		340		910		121		1,031
Total	$	7,372	$	348	$	7,720	$	154	$	7,874

Based on the most recent analysis performed, the following table presents the recorded investment in non-homogenous pools by internal risk rating systems (in thousands):


														Revolving		Revolving
	Term Loans Amortized Costs Basis by Origination Year													Loans		Loans
														Amortized		Converted
March 31, 2025		2025		2024		2023		2022		2021		Prior		Cost Basis		to Term		Total
Commercial real estate
Risk Rating
Pass	$	25,605	$	101,428	$	73,057	$	120,459	$	103,005	$	272,174	$	21,321	$	-	$	717,049
Special Mention		-		4		-		259		183		2,075		-		-		2,521
Substandard		-		135		-		-		2,438		8,613		400		-		11,586
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	25,605	$	101,567	$	73,057	$	120,718	$	105,626	$	282,862	$	21,721	$	-	$	731,156

Commercial real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	49	$	-	$	-	$	49

Real Estate - Agriculture
Risk Rating
Pass	$	915	$	6,232	$	3,764	$	11,921	$	3,904	$	35,315	$	371	$	-	$	62,422
Special Mention		-		-		-		-		-		609		150		-		759
Substandard		-		-		-		-		-		-		32		-		32
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	915	$	6,232	$	3,764	$	11,921	$	3,904	$	35,924	$	553	$	-	$	63,213

Real Estate - Agriculture
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial loans
Risk Rating
Pass	$	31,152	$	51,113	$	30,155	$	28,303	$	17,644	$	24,397	$	47,484	$	-	$	230,248
Special Mention		-		-		-		24		33		229		13		-		299
Substandard		-		-		271		411		658		742		850		-		2,932

Doubtful		-		-		-		-		-		-		-		-		-
Total	$	31,152	$	51,113	$	30,426	$	28,738	$	18,335	$	25,368	$	48,347	$	-	$	233,479

Commercial loans
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Other agricultural loans
Risk Rating
Pass	$	227	$	3,645	$	1,672	$	3,488	$	2,235	$	6,041	$	8,737	$	-	$	26,045
Special Mention		-		-		-		-		-		120		-		-		120
Substandard		-		-		-		-		-		-		1,472		-		1,472
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	227	$	3,645	$	1,672	$	3,488	$	2,235	$	6,161	$	10,209	$	-	$	27,637

Other agricultural loans
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	38	$	-	$	-	$	38

Total
Risk Rating
Pass	$	57,899	$	162,418	$	108,648	$	164,171	$	126,788	$	337,927	$	77,913	$	-	$	1,035,764
Special Mention		-		4		-		283		216		3,033		163		-		3,699
Substandard		-		135		271		411		3,096		9,355		2,754		-		16,022
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	57,899	$	162,557	$	108,919	$	164,865	$	130,100	$	350,315	$	80,830	$	-	$	1,055,485

‎


														Revolving		Revolving
	Term Loans Amortized Costs Basis by Origination Year													Loans		Loans
														Amortized		Converted
December 31, 2024		2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
Commercial real estate
Risk Rating
Pass	$	102,773	$	74,242	$	121,881	$	104,720	$	60,941	$	217,435	$	20,829	$	-	$	702,821
Special Mention		5		-		262		-		-		2,148		-		-		2,415
Substandard		135		-		-		2,461		1,405		7,238		400		-		11,639
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	102,913	$	74,242	$	122,143	$	107,181	$	62,346	$	226,821	$	21,229	$	-	$	716,875

Commercial real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Real Estate - Agriculture
Risk Rating
Pass	$	6,257	$	3,756	$	12,036	$	3,960	$	7,148	$	29,038	$	336	$	-	$	62,531
Special Mention		-		-		-		-		-		773		150		-		923
Substandard		-		-		-		-		-		-		34		-		34
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	6,257	$	3,756	$	12,036	$	3,960	$	7,148	$	29,811	$	520	$	-	$	63,488

Real Estate - Agriculture
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial loans
Risk Rating
Pass	$	57,939	$	34,088	$	29,465	$	19,163	$	10,233	$	15,042	$	42,906	$	-	$	208,836
Special Mention		-		-		25		-		-		106		14		-		145
Substandard		-		277		429		711		-		743		850		-		3,010
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	57,939	$	34,365	$	29,919	$	19,874	$	10,233	$	15,891	$	43,770	$	-	$	211,991

Commercial loans
Current period gross charge-offs	$	-	$	11	$	-	$	-	$	8	$	51	$	30	$	-	$	100

Other agricultural loans
Risk Rating
Pass	$	4,358	$	1,836	$	3,721	$	2,379	$	2,134	$	4,353	$	9,697	$	-	$	28,478
Special Mention		-		-		-		-		-		127		-		-		127
Substandard		-		-		-		-		-		-		1,472		-		1,472
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	4,358	$	1,836	$	3,721	$	2,379	$	2,134	$	4,480	$	11,169	$	-	$	30,077

Other agricultural loans
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total
Risk Rating
Pass	$	171,327	$	113,922	$	167,103	$	130,222	$	80,456	$	265,868	$	73,768	$	-	$	1,002,666
Special Mention		5		-		287		-		-		3,154		164		-		3,610
Substandard		135		277		429		3,172		1,405		7,981		2,756		-		16,155
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	171,467	$	114,199	$	167,819	$	133,394	$	81,861	$	277,003	$	76,688	$	-	$	1,022,431

The Company monitors the credit risk profile by payment activity for residential and consumer loan classes. Loans past due over 90 days and loans on nonaccrual status are considered nonperforming. Nonperforming loans are reviewed monthly. The following table presents the carrying value of residential and consumer loans based on payment activity (in thousands):


														Revolving		Revolving
	Term Loans Amortized Costs Basis by Origination Year													Loans		Loans
														Amortized		Converted
March 31, 2025		2025		2024		2023		2022		2021		Prior		Cost Basis		to Term		Total
Residential real estate
Payment Performance
Performing	$	3,405	$	26,247	$	41,090	$	58,207	$	51,735	$	118,458	$	30,308	$	-	$	329,450
Nonperforming		-		-		125		52		180		443		38		-		838
Total	$	3,405	$	26,247	$	41,215	$	58,259	$	51,915	$	118,901	$	30,346	$	-	$	330,288

Residential real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Construction
Payment Performance
Performing	$	1,853	$	33,626	$	11,210	$	9,040	$	348	$	131	$	2,007	$	-	$	58,215
Nonperforming		-		-		-		-		11		-		-		-		11
Total	$	1,853	$	33,626	$	11,210	$	9,040	$	359	$	131	$	2,007	$	-	$	58,226

Construction
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Consumer loans to individuals
Payment Performance
Performing	$	39,642	$	121,194	$	85,983	$	47,727	$	14,006	$	17,133	$	798	$	-	$	326,483
Nonperforming		-		115		442		409		144		90		-		-		1,200
Total	$	39,642	$	121,309	$	86,425	$	48,136	$	14,150	$	17,223	$	798	$	-	$	327,683

Consumer loans to individuals
Current period gross charge-offs	$	-	$	69	$	79	$	87	$	8	$	86	$	-	$	-	$	329

Total
Payment Performance
Performing	$	44,900	$	181,067	$	138,283	$	114,974	$	66,089	$	135,722	$	33,113	$	-	$	714,148
Nonperforming		-		115		567		461		335		533		38		-		2,049
Total	$	44,900	$	181,182	$	138,850	$	115,435	$	66,424	$	136,255	$	33,151	$	-	$	716,197


														Revolving		Revolving
	Term Loans Amortized Costs Basis by Origination Year													Loans		Loans
														Amortized		Converted
December 31, 2024		2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
Residential real estate
Payment Performance
Performing	$	22,842	$	41,384	$	60,194	$	52,712	$	32,161	$	89,965	$	30,658	$	-	$	329,916
Nonperforming		-		125		52		184		-		560		19		-		940
Total	$	22,842	$	41,509	$	60,246	$	52,896	$	32,161	$	90,525	$	30,677	$	-	$	330,856

Residential real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Construction
Payment Performance
Performing	$	28,817	$	12,986	$	9,024	$	431	$	-	$	144	$	1,618	$	-	$	53,020
Nonperforming		-		-		-		-		-		-		-		-		-
Total	$	28,817	$	12,986	$	9,024	$	431	$	-	$	144	$	1,618	$	-	$	53,020

Construction
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Consumer loans to individuals
Payment Performance
Performing	$	125,254	$	93,392	$	52,009	$	15,679	$	8,316	$	11,207	$	887	$	-	$	306,744
Nonperforming		97		401		377		114		26		16		-		-		1,031
Total	$	125,351	$	93,793	$	52,386	$	15,793	$	8,342	$	11,223	$	887	$	-	$	307,775

Consumer loans to individuals
Current period gross charge-offs	$	123	$	511	$	850	$	203	$	87	$	75	$	-	$	-	$	1,849

Total
Payment Performance
Performing	$	176,913	$	147,762	$	121,227	$	68,822	$	40,477	$	101,316	$	33,163	$	-	$	689,680
Nonperforming		97		526		429		298		26		576		19		-		1,971
Total	$	177,010	$	148,288	$	121,656	$	69,120	$	40,503	$	101,892	$	33,182	$	-	$	691,651

Occasionally, the Bank modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, and other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses.

In some cases, the Bank provides multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. During the three months ended March 31, 2025, there were modifications made to borrowers experiencing financial difficulty consisting of 4 relationships. The following table presents modifications made to borrowers experiencing financial difficulty:


Significant Payment Delay

		Amortized Cost Basis at March 31, 2025	% of Total Class of Financing Receivable		Financial Effect
		(in thousands)
Consumer loans to individuals	$	7	0.00	%	Deferred principal for 4 months

Total	$	7

Term Extension

		Amortized Cost Basis at March 31, 2025	% of Total Class of Financing Receivable		Financial Effect
		(in thousands)
Commercial real estate loans	$	1,475	0.00	%	Added a weighted-average 6.0 months to the life of loans
Commercial loans		298	0.00		Added a weighted-average 5.0 years to the life of loans

Total	$	1,773


Combination -Significant Payment Delay and Term Extension

		Amortized Cost Basis at March 31, 2025	% of Total Class of Financing Receivable		Financial Effect

Commercial real estate loans	$	3,779	0.01	%	Deferred principal for 9 months and extended term by 9 months

Total	$	3,779

Of the modifications made to borrowers experiencing financial difficulty, there were none that had a payment default during the period.

The Company’s primary business activity as of March 31, 2024 was with customers located in northeastern Pennsylvania and the New York counties of Delaware, Sullivan, Ontario, Otsego and Yates. Accordingly, the Company has extended credit primarily to commercial entities and individuals in this area whose ability to repay their loans is influenced by the region’s economy.

As of March 31, 2025, the Company considered its concentration of credit risk to be acceptable. The highest concentrations are in commercial rentals with $162.5 million of loans outstanding, or 9.2% of total loans outstanding, and residential rentals with loans outstanding of $117.5 million, or 6.7% of loans outstanding. For the three months ended March 31, 2025, the Company recognized charge offs of $0 on commercial rentals and $0 on residential rentals. The following table presents additional details regarding the company’s largest loan concentrations by industry as of March 31, 2025 (in thousands):