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ALLOWANCE FOR CREDIT LOSSES - LOANS

12 Months Ended

Dec. 31, 2024

7. ALLOWANCE FOR CREDIT LOSSES – LOANS

The following tables summarize the roll forward of the allowance for credit losses by loan portfolio segment for the years ended December 31, 2024 and 2023 (in thousands).

BALANCE AT

CHARGE-

PROVISION

BALANCE AT

DECEMBER 31, 2023

OFFS

RECOVERIES

(RECOVERY)

DECEMBER 31, 2024

Commercial real estate (owner occupied)

1,529

—

(1,155)

398

Other commercial and industrial

3,030

(427)

212

2,860

Commercial real estate (non-owner occupied) - retail

3,488

—

207

3,695

Commercial real estate (non-owner occupied) - multi-family

1,430

—

1,478

Other commercial real estate (non-owner occupied)

3,428

(1,571)

1,583

3,451

Residential mortgages

1,021

—

(200)

839

Consumer

1,127

(207)

190

1,191

Total

15,053

(2,205)

182

882

13,912


	BALANCE AT			IMPACT OF	CHARGE-				PROVISION		BALANCE AT
	DECEMBER 31, 2022			ADOPTING ASC 326	OFFS		RECOVERIES		(RECOVERY)		DECEMBER 31, 2023

Commercial real estate (owner occupied)	$	—	$	1,380	$	—	$	24	$	125	$	1,529
Other commercial and industrial		—		2,908		(480)		3		599		3,030
Commercial real estate (non-owner occupied) - retail		—		1,432		(2,028)		—		4,084		3,488
Commercial real estate (non-owner occupied) - multi-family		—		1,226		—		6		198		1,430
Other commercial real estate (non-owner occupied)		5,972		(2,776)		(804)		14		1,022		3,428
Commercial (owner occupied real estate and other)		2,653		(2,653)		—		—		—		—
Residential mortgages		1,380		(355)		(54)		14		36		1,021
Consumer		85		695		(275)		123		499		1,127
Allocation for general risk		653		(653)		—		—		—		—
Total	$	10,743	$	1,204	$	(3,641)	$	184	$	6,563	$	15,053

The Company recorded an $882,000 provision for credit losses on the loan portfolio in 2024 compared to a provision of $6.6 million for the year ended December 31, 2023, resulting in a favorable change of $5.7 million. The lower provision for credit losses for the 2024 year reflects provision recoveries recognized for the loan portfolio during the first and third quarters. These recoveries were more than offset by the fourth quarter provision of $1.0 million. The provision for credit losses in the fourth quarter of 2024 reflects the unfavorable impact on loss rates used to calculate the allowance for credit losses in accordance with CECL and a $400,000 specific reserve established on a new other commercial and industrial (C&I) loan transferred to non-accrual status. The unfavorable impact on loss rates resulted from a $1.6 million partial charge-down of a $3.6 million other commercial real estate (non-owner occupied) loan that was transferred to non-accrual status during the fourth quarter on which a specific reserve had already been established earlier in the year. Additionally, the provision expense was impacted by the strong level of loan growth experienced during the fourth quarter of 2024.

The significantly higher provision expense for credit losses on loans recorded during the year ended December 31, 2023 was due to the negative impact that the Rite Aid bankruptcy had on several commercial real estate properties. Specifically, the 2023 allowance for loan credit losses provision of $6.6 million was recorded after Rite Aid, a national tenant in several commercial real estate properties financed by the Company, declared bankruptcy in the fourth quarter. As a result of that action, the Company updated its comprehensive evaluation of its exposure to Rite Aid throughout its loan portfolio as it received information on leases that Rite Aid either rejected or modified. The evaluation required the recognition of $2.0 million in charge-offs related to two non-owner occupied commercial real estate (CRE) loans in which Rite Aid was the sole tenant. There was also a partial charge-down of $804,000 on another non-owner occupied CRE loan for a mixed-use retail/office property in which Rite Aid was the major tenant. Also contributing to the significant increase in the provision for credit losses in 2023 was an unfavorable adjustment to the historical loss factors used to calculate the allowance for credit losses in accordance with CECL requirements and growth within the loan portfolio.

The following tables summarize the loan portfolio and allowance for credit losses by the primary segments of the loan portfolio.

AT DECEMBER 31, 2024

COMMERCIAL

REAL ESTATE

OTHER COMMERCIAL

REAL ESTATE

OTHER COMMERCIAL

(NON-OWNER OCCUPIED) -

REAL ESTATE

RESIDENTIAL

Loans:

(OWNER OCCUPIED)

AND INDUSTRIAL

RETAIL

MULTI-FAMILY

(NON-OWNER OCCUPIED)

MORTGAGES

CONSUMER

TOTAL

(IN THOUSANDS)

Individually evaluated

3,429

1,675

—

8,773

379

14,266

Collectively evaluated

83,524

145,576

181,778

132,364

225,109

176,731

108,601

1,053,683

Total loans

86,953

147,251

181,778

132,364

233,882

177,110

108,611

1,067,949

AT DECEMBER 31, 2024

COMMERCIAL

REAL ESTATE

OTHER COMMERCIAL

Allowance for

REAL ESTATE

OTHER COMMERCIAL

(NON-OWNER OCCUPIED) -

REAL ESTATE

RESIDENTIAL

credit losses:

(OWNER OCCUPIED)

AND INDUSTRIAL

RETAIL

MULTI-FAMILY

(NON-OWNER OCCUPIED)

MORTGAGES

CONSUMER

TOTAL

(IN THOUSANDS)

Specific reserve allocation

—

541

—

541

General reserve allocation

398

2,319

3,695

1,478

3,451

839

1,191

13,371

Total allowance for credit losses

398

2,860

3,695

1,478

3,451

839

1,191

13,912


	AT DECEMBER 31, 2023
					COMMERCIAL		COMMERCIAL
	COMMERCIAL				REAL ESTATE		REAL ESTATE		OTHER COMMERCIAL
	REAL ESTATE		OTHER COMMERCIAL		(NON-OWNER OCCUPIED) -		(NON-OWNER OCCUPIED) -		REAL ESTATE		RESIDENTIAL
Loans:	(OWNER OCCUPIED)		AND INDUSTRIAL		RETAIL		MULTI-FAMILY		(NON-OWNER OCCUPIED)		MORTGAGES		CONSUMER		TOTAL

	(IN THOUSANDS)
Individually evaluated	$	187	$	1,694	$	—	$	—	$	8,780	$	173	$	—	$	10,834
Collectively evaluated		88,960		157,730		161,961		110,008		231,506		174,497		102,775		1,027,437
Total loans	$	89,147	$	159,424	$	161,961	$	110,008	$	240,286	$	174,670	$	102,775	$	1,038,271


	AT DECEMBER 31, 2023
					COMMERCIAL		COMMERCIAL
	COMMERCIAL				REAL ESTATE		REAL ESTATE		OTHER COMMERCIAL
Allowance for	REAL ESTATE		OTHER COMMERCIAL		(NON-OWNER OCCUPIED) -		(NON-OWNER OCCUPIED) -		REAL ESTATE		RESIDENTIAL
credit losses:	(OWNER OCCUPIED)		AND INDUSTRIAL		RETAIL		MULTI-FAMILY		(NON-OWNER OCCUPIED)		MORTGAGES		CONSUMER		TOTAL

	(IN THOUSANDS)
Specific reserve allocation	$	—	$	414	$	—	$	—	$	—	$	—	$	—	$	414
General reserve allocation		1,529		2,616		3,488		1,430		3,428		1,021		1,127		14,639
Total allowance for credit losses	$	1,529	$	3,030	$	3,488	$	1,430	$	3,428	$	1,021	$	1,127	$	15,053

The following tables present the amortized cost basis of collateral-dependent loans which were individually evaluated for a specific reserve allocation in the allowance for credit losses by class of loans (in thousands).


	COLLATERAL TYPE
DECEMBER 31, 2024	REAL ESTATE
Commercial:
Commercial real estate (owner occupied)	$	3,429
Other commercial and industrial		1,000
Commercial real estate (non-owner occupied):
Other		8,773
Residential mortgages		378
Consumer		10
Total	$	13,590


	COLLATERAL TYPE
DECEMBER 31, 2023	REAL ESTATE
Commercial:
Commercial real estate (owner occupied)	$	187
Commercial real estate (non-owner occupied):
Other		8,780
Residential mortgages		173
Total	$	9,140

Non-Performing Assets from the Loan Portfolio

Non-performing assets from the loan portfolio are comprised of (i) loans which are on a non-accrual basis, (ii) loans which are contractually past due 90 days or more as to interest or principal payments, and (iii) other real estate owned (OREO – real estate acquired through foreclosure and in-substance foreclosures) and repossessed assets.

Loans will be transferred to non-accrual status when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating the loan include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The following table presents non-accrual loans, loans past due over 90 days still accruing interest, and OREO and repossessed assets by portfolio class (in thousands).


	AT DECEMBER 31, 2024
	NON-ACCRUAL WITH NO ACL		NON-ACCRUAL WITH ACL		TOTAL NON-ACCRUAL		LOANS PAST DUE OVER 90 DAYS STILL ACCRUING		OREO AND REPOSSESSED ASSETS		TOTAL NON-PERFORMING ASSETS
Commercial real estate (owner occupied)	$	152	$	—	$	152	$	—	$	—	$	152
Other commercial and industrial		—		675		675		97		234		1,006
Other commercial real estate (non-owner occupied)		8,773		—		8,773		—		1,476		10,249
Residential mortgages		379		—		379		26		14		419
Consumer		10		821		831		—		—		831
Total	$	9,314	$	1,496	$	10,810	$	123	$	1,724	$	12,657


	AT DECEMBER 31, 2023
	NON-ACCRUAL WITH NO ACL		NON-ACCRUAL WITH ACL		TOTAL NON-ACCRUAL		LOANS PAST DUE OVER 90 DAYS STILL ACCRUING		OREO AND REPOSSESSED ASSETS		TOTAL NON-PERFORMING ASSETS
Commercial real estate (owner occupied)	$	187	$	—	$	187	$	—	$	—	$	187
Other commercial and industrial		—		1,694		1,694		211		—		1,905
Other commercial real estate (non-owner occupied)		8,780		—		8,780		—		—		8,780
Residential mortgages		173		545		718		—		15		733
Consumer		—		788		788		—		—		788
Total	$	9,140	$	3,027	$	12,167	$	211	$	15	$	12,393

It should be noted that the Company has elected to exclude accrued interest receivable from the measurement of its ACL. When a loan is placed in non-accrual status, any outstanding interest is reversed against interest income.

Non-performing assets from the loan portfolio increased from $12.4 million at December 31, 2023 to $12.7 million at December 31, 2024. Non-performing assets from the loan portfolio were at 1.19% of total loans as of December 31, 2024. The Company recognized net loan charge-offs of $2.0 million, or 0.19% of total average loans, in 2024 compared to net loan charge-offs of $3.5 million, or 0.35% of total average loans, in 2023. In summary, the allowance for credit losses provided 127% coverage of non-performing loans and 1.30% of total loans at December 31, 2024 compared to 122% coverage of non-performing loans and 1.45% of total loans at December 31, 2023.

Foreclosed assets acquired in settlement of loans carried at fair value less estimated costs to sell are included in other assets on the Consolidated Balance Sheets. As of December 31, 2024 and 2023, a total of $14,000 and $15,000, respectively, of residential real estate foreclosed assets were included in other assets. As of December 31, 2024, the Company had initiated formal foreclosure procedures on $198,000 of residential mortgages.

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually to classify the loans as to credit risk.

Management uses a nine-point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized. The first five pass categories are aggregated, while the pass-6, special mention, substandard and doubtful categories are disaggregated to separate pools. 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 and unwarranted 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. Loans in the doubtful category 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. All loans greater than 90 days past due, or for which any portion of the loan represents a specific allocation of the allowance for credit losses are typically placed in substandard or doubtful.

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan rating process, which dictates that, at a minimum, credit reviews are mandatory for all commercial and commercial mortgage loan relationships with aggregate balances in excess of $1,000,000 within a 12-month period. Generally, consumer and residential mortgage loans are included in the pass categories unless a specific action, such as bankruptcy, delinquency, or death occurs to raise awareness of a possible credit event. The Company’s commercial relationship managers are responsible for the timely and accurate risk rating of the loans in their portfolios at origination and on an ongoing basis. Risk ratings are assigned by the account officer, but require independent review and rating concurrence from the Company’s internal Loan Review Department. The Loan

Review Department is an experienced, independent function which reports directly to the Board’s Audit Committee. The scope of commercial portfolio coverage by the Loan Review Department is defined and presented to the Audit Committee for approval on an annual basis. The actual loan review coverage for the year ended December 31, 2024 was 30% of the commercial loan portfolio.

In addition to loan monitoring by the account officer and Loan Review Department, the Company also requires presentation of all credits rated pass-6 with aggregate balances greater than $2,000,000, all credits rated special mention or substandard with aggregate balances greater than $250,000, and all credits rated doubtful with aggregate balances greater than $100,000 on an individual basis to the Company’s Loan Loss Reserve Committee on a quarterly basis. Additionally, the Asset Quality Task Force, which is a group comprised of senior level personnel, meets monthly to monitor the status of problem loans.

The following tables present the classes of the commercial and commercial real estate loan portfolios summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system.


	AT DECEMBER 31, 2024
													REVOLVING		REVOLVING
													LOANS		LOANS
													AMORTIZED		CONVERTED
	TERM LOANS AMORTIZED COST BASIS BY ORIGINATION YEAR												COST		TO
	2024		2023		2022		2021		2020		PRIOR		BASIS		TERM		TOTAL

	(IN THOUSANDS)
Commercial real estate (owner occupied)
Pass	$	10,294	$	17,016	$	6,648	$	10,675	$	10,476	$	26,393	$	324	$	856	$	82,682
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		3,680		—		591		—		—		4,271
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	10,294	$	17,016	$	6,648	$	14,355	$	10,476	$	26,984	$	324	$	856	$	86,953
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial and industrial
Pass	$	16,714	$	19,357	$	20,977	$	7,397	$	4,568	$	19,280	$	54,455	$	—	$	142,748
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		480		409		1,753		—		689		1,172		—		4,503
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	16,714	$	19,837	$	21,386	$	9,150	$	4,568	$	19,969	$	55,627	$	—	$	147,251
Current period gross charge-offs	$	—	$	—	$	427	$	—	$	—	$	—	$	—	$	—	$	427
Commercial real estate (non-owner occupied) - retail
Pass	$	29,349	$	38,912	$	20,935	$	31,934	$	21,322	$	38,047	$	32	$	942	$	181,473
Special Mention		—		—		305		—		—		—		—		—		305
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	29,349	$	38,912	$	21,240	$	31,934	$	21,322	$	38,047	$	32	$	942	$	181,778
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate (non-owner occupied) - multi-family
Pass	$	25,984	$	28,807	$	16,423	$	16,816	$	11,513	$	30,066	$	475	$	—	$	130,084
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		915		1,365		—		—		2,280
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	25,984	$	28,807	$	16,423	$	16,816	$	12,428	$	31,431	$	475	$	—	$	132,364
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial real estate (non-owner occupied)
Pass	$	27,801	$	32,514	$	35,365	$	40,876	$	16,226	$	61,619	$	4,537	$	194	$	219,132
Special Mention		—		—		—		—		—		3,488		—		—		3,488
Substandard		—		—		569		199		—		10,494		—		—		11,262
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	27,801	$	32,514	$	35,934	$	41,075	$	16,226	$	75,601	$	4,537	$	194	$	233,882
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	1,571	$	—	$	—	$	1,571
Total by risk rating
Pass	$	110,142	$	136,606	$	100,348	$	107,698	$	64,105	$	175,405	$	59,823	$	1,992	$	756,119
Special Mention		—		—		305		—		—		3,488		—		—		3,793
Substandard		—		480		978		5,632		915		13,139		1,172		—		22,316
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	110,142	$	137,086	$	101,631	$	113,330	$	65,020	$	192,032	$	60,995	$	1,992	$	782,228
Current period gross charge-offs	$	—	$	—	$	427	$	—	$	—	$	1,571	$	—	$	—	$	1,998


	AT DECEMBER 31, 2023
													REVOLVING		REVOLVING
													LOANS		LOANS
													AMORTIZED		CONVERTED
	TERM LOANS AMORTIZED COST BASIS BY ORIGINATION YEAR												COST		TO
	2023		2022		2021		2020		2019		PRIOR		BASIS		TERM		TOTAL

	(IN THOUSANDS)
Commercial real estate (owner occupied)
Pass	$	17,801	$	6,750	$	15,067	$	8,415	$	10,322	$	26,538	$	351	$	—	$	85,244
Special Mention		—		—		464		—		2,252		—		923		—		3,639
Substandard		—		—		—		—		—		264		—		—		264
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	17,801	$	6,750	$	15,531	$	8,415	$	12,574	$	26,802	$	1,274	$	—	$	89,147
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial and industrial
Pass	$	22,662	$	34,816	$	12,767	$	5,831	$	4,912	$	19,587	$	56,391	$	70	$	157,036
Special Mention		—		—		127		—		—		—		—		—		127
Substandard		—		619		—		—		—		1,578		64		—		2,261
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	22,662	$	35,435	$	12,894	$	5,831	$	4,912	$	21,165	$	56,455	$	70	$	159,424
Current period gross charge-offs	$	—	$	75	$	—	$	—	$	—	$	405	$	—	$	—	$	480
Commercial real estate (non-owner occupied) - retail
Pass	$	35,545	$	23,368	$	33,110	$	23,146	$	9,226	$	35,102	$	983	$	—	$	160,480
Special Mention		—		314		—		—		—		1,167		—		—		1,481
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	35,545	$	23,682	$	33,110	$	23,146	$	9,226	$	36,269	$	983	$	—	$	161,961
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	2,028	$	—	$	—	$	2,028
Commercial real estate (non-owner occupied) - multi-family
Pass	$	22,620	$	16,767	$	16,622	$	12,041	$	9,638	$	28,632	$	1,321	$	—	$	107,641
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		966		1,278		123		—		—		2,367
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	22,620	$	16,767	$	16,622	$	13,007	$	10,916	$	28,755	$	1,321	$	—	$	110,008
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial real estate (non-owner occupied)
Pass	$	29,591	$	36,398	$	48,267	$	20,168	$	23,025	$	54,792	$	5,670	$	—	$	217,911
Special Mention		—		—		—		—		—		3,777		—		—		3,777
Substandard		—		1,043		—		—		6,243		11,113		—		199		18,598
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	29,591	$	37,441	$	48,267	$	20,168	$	29,268	$	69,682	$	5,670	$	199	$	240,286
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	804	$	—	$	—	$	—	$	804
Total by risk rating
Pass	$	128,219	$	118,099	$	125,833	$	69,601	$	57,123	$	164,651	$	64,716	$	70	$	728,312
Special Mention		—		314		591		—		2,252		4,944		923		—		9,024
Substandard		—		1,662		—		966		7,521		13,078		64		199		23,490
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	128,219	$	120,075	$	126,424	$	70,567	$	66,896	$	182,673	$	65,703	$	269	$	760,826
Current period gross charge-offs	$	—	$	75	$	—	$	—	$	804	$	2,433	$	—	$	—	$	3,312

It is generally the policy of the Bank that the outstanding balance of any residential mortgage or home equity loan that exceeds 90-days past due as to principal and/or interest is transferred to non-accrual status and an evaluation is completed to determine the fair value of the collateral less selling costs, unless the balance is minor. A charge-down is recorded for any deficiency balance determined from the collateral evaluation. It is generally the policy of the Bank that the outstanding balance of any unsecured consumer loan that exceeds 90-days past due as to principal and/or interest is charged off. Loans past due 90 days or more and loans in non-accrual status are considered non-performing. The following tables present the performing and non-performing outstanding balances of the residential mortgage and consumer loan portfolio classes.


	AT DECEMBER 31, 2024
													REVOLVING		REVOLVING
													LOANS		LOANS
													AMORTIZED		CONVERTED
	TERM LOANS AMORTIZED COST BASIS BY ORIGINATION YEAR												COST		TO
	2024		2023		2022		2021		2020		PRIOR		BASIS		TERM		TOTAL

	(IN THOUSANDS)
Residential mortgages
Performing	$	12,877	$	15,602	$	10,400	$	57,540	$	41,868	$	38,418	$	—	$	—	$	176,705
Non-performing		—		—		—		—		—		405		—		—		405
Total	$	12,877	$	15,602	$	10,400	$	57,540	$	41,868	$	38,823	$	—	$	—	$	177,110
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer
Performing	$	11,476	$	10,988	$	16,397	$	7,605	$	2,475	$	4,299	$	53,876	$	664	$	107,780
Non-performing		—		110		46		—		59		344		272		—		831
Total	$	11,476	$	11,098	$	16,443	$	7,605	$	2,534	$	4,643	$	54,148	$	664	$	108,611
Current period gross charge-offs	$	5	$	6	$	21	$	19	$	13	$	143	$	—	$	—	$	207
Total by payment performance
Performing	$	24,353	$	26,590	$	26,797	$	65,145	$	44,343	$	42,717	$	53,876	$	664	$	284,485
Non-performing		—		110		46		—		59		749		272		—		1,236
Total	$	24,353	$	26,700	$	26,843	$	65,145	$	44,402	$	43,466	$	54,148	$	664	$	285,721
Current period gross charge-offs	$	5	$	6	$	21	$	19	$	13	$	143	$	—	$	—	$	207


	AT DECEMBER 31, 2023
													REVOLVING		REVOLVING
													LOANS		LOANS
													AMORTIZED		CONVERTED
	TERM LOANS AMORTIZED COST BASIS BY ORIGINATION YEAR												COST		TO
	2023		2022		2021		2020		2019		PRIOR		BASIS		TERM		TOTAL

	(IN THOUSANDS)
Residential mortgages
Performing	$	14,576	$	11,620	$	61,172	$	44,049	$	7,092	$	35,443	$	—	$	—	$	173,952
Non-performing		—		—		—		—		—		718		—		—		718
Total	$	14,576	$	11,620	$	61,172	$	44,049	$	7,092	$	36,161	$	—	$	—	$	174,670
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	54	$	—	$	—	$	54
Consumer
Performing	$	13,890	$	20,430	$	9,782	$	3,190	$	1,169	$	4,515	$	48,344	$	667	$	101,987
Non-performing		15		—		—		73		42		280		157		221		788
Total	$	13,905	$	20,430	$	9,782	$	3,263	$	1,211	$	4,795	$	48,501	$	888	$	102,775
Current period gross charge-offs	$	9	$	35	$	43	$	7	$	8	$	173	$	—	$	—	$	275
Total by payment performance
Performing	$	28,466	$	32,050	$	70,954	$	47,239	$	8,261	$	39,958	$	48,344	$	667	$	275,939
Non-performing		15		—		—		73		42		998		157		221		1,506
Total	$	28,481	$	32,050	$	70,954	$	47,312	$	8,303	$	40,956	$	48,501	$	888	$	277,445
Current period gross charge-offs	$	9	$	35	$	43	$	7	$	8	$	227	$	—	$	—	$	329

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 tables present the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans.

AT DECEMBER 31, 2024

30 – 59

60 – 89

DAYS

90+ DAYS

TOTAL

NON-

TOTAL

CURRENT

PAST DUE

ACCRUAL

LOANS

(IN THOUSANDS)

Commercial real estate (owner occupied)

86,368

433

—

433

152

86,953

Other commercial and industrial

144,627

1,852

—

1,949

675

147,251

Commercial real estate (non-owner occupied) - retail

181,778

—

181,778

Commercial real estate (non-owner occupied) - multi-family

132,364

—

132,364

Other commercial real estate (non-owner occupied)

224,914

195

—

195

8,773

233,882

Residential mortgages

175,817

852

914

379

177,110

Consumer

106,796

948

—

984

831

108,611

Total

1,052,664

4,280

123

4,475

10,810

1,067,949


	AT DECEMBER 31, 2023

			30 – 59		60 – 89
			DAYS		DAYS		90+ DAYS		TOTAL		NON-		TOTAL
	CURRENT		PAST DUE		PAST DUE		PAST DUE		PAST DUE		ACCRUAL		LOANS

	(IN THOUSANDS)
Commercial real estate (owner occupied)	$	88,960	$	—	$	—	$	—	$	—	$	187	$	89,147
Other commercial and industrial		156,971		526		22		211		759		1,694		159,424
Commercial real estate (non-owner occupied) - retail		161,961		—		—		—		—		—		161,961
Commercial real estate (non-owner occupied) - multi-family		110,008		—		—		—		—		—		110,008
Other commercial real estate (non-owner occupied)		231,506		—		—		—		—		8,780		240,286
Residential mortgages		173,497		437		18		—		455		718		174,670
Consumer		101,383		604		—		—		604		788		102,775
Total	$	1,024,286	$	1,567	$	40	$	211	$	1,818	$	12,167	$	1,038,271

Loan Modifications to Borrowers Experiencing Financial Difficulty

Occasionally, the Company modifies loans to borrowers experiencing financial difficulty as a result of our loss mitigation activities. A variety of solutions are offered to borrowers, including loan modifications that may result in principal forgiveness, interest rate reductions, term extensions, payment delays, or combinations thereof.

●

Principal forgiveness includes principal and accrued interest forgiveness. When principal forgiveness is provided, the amount of forgiveness is charged off against the ACL.

●

Interest rate reductions include modifications where the interest rate is reduced, and interest is deferred.

●

Term extensions extend the original contractual maturity date of the loan.

●

Payment delays consist of modifications where we expect to collect the contractual amounts due but result in a delay in the receipt of payments specified under the original loan terms. We generally consider payment delays to be insignificant when the delay is three months or less.

The following tables summarize the amortized cost basis of loans modified to borrowers experiencing financial difficulty during the years ended December 31, 2024 and 2023 (in thousands).


	YEAR ENDED DECEMBER 31, 2024
	PAYMENT DELAY
	AMORTIZED COST BASIS		% OF TOTAL CLASS OF LOANS
Commercial real estate (owner occupied)	$	152		0.17	%
Total	$	152

	TERM EXTENSION
	AMORTIZED COST BASIS		% OF TOTAL CLASS OF LOANS
Other commercial and industrial	$	154		0.10	%
Total	$	154

	COMBINATION - PRINCIPAL FORGIVENESS AND TERM EXTENSION
	AMORTIZED COST BASIS		% OF TOTAL CLASS OF LOANS
Other commercial and industrial	$	480		0.33	%
Total	$	480

As of December 31, 2024, the modified loans described in the table above were current as to payments.


	YEAR ENDED DECEMBER 31, 2023
	TERM EXTENSION
	AMORTIZED COST BASIS		% OF TOTAL CLASS OF LOANS
Residential mortgages	$	37		0.02	%
Total	$	37

	COMBINATION - INTEREST RATE REDUCTION AND TERM EXTENSION
	AMORTIZED COST BASIS		% OF TOTAL CLASS OF LOANS
Other commercial real estate (non-owner occupied)	$	6,243		2.60	%
Total	$	6,243

At December 31, 2024 and 2023, the Company had no unfunded loan commitments associated with the loan modifications to borrowers experiencing financial difficulty.

The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty during the years ended December 31, 2024 and 2023.


YEAR ENDED DECEMBER 31, 2024
PAYMENT DELAY
LOAN TYPE		FINANCIAL EFFECT
Commercial real estate (owner occupied)		Provided 60 months of additional amortization period to lower borrower's monthly payment.

TERM EXTENSION
LOAN TYPE		FINANCIAL EFFECT
Other commercial and industrial		During the first, second, and third quarters of 2024, provided a maturity date extension of ninety days and modified seasonal principal and interest payments to interest only until maturity. During the fourth quarter, provided the same borrower an additional maturity date extension of one year and required monthly principal and interest payments.

COMBINATION - PRINCIPAL FORGIVENESS AND TERM EXTENSION
LOAN TYPE		FINANCIAL EFFECT
Other commercial and industrial		As a result of the borrower's bankruptcy, the maturity date of the loan was extended four years and a portion of the principal balance was converted to an equity investment in the borrower.


YEAR ENDED DECEMBER 31, 2023
TERM EXTENSION
LOAN TYPE		FINANCIAL EFFECT
Residential mortgages		During the fourth quarter, provided a maturity date extension of approximately 15 years.

COMBINATION - INTEREST RATE REDUCTION AND TERM EXTENSION
LOAN TYPE		FINANCIAL EFFECT
Other commercial real estate (non-owner occupied)		During the second quarter, provided seven months of interest only payments at a reduced rate with the remaining portion of interest, totaling approximately $303,000, being deferred until maturity. Additionally, provided three month maturity date extension. A partial charge-down of $804,000 was recorded on this loan in the fourth quarter.

During 2023, there was an additional loan modification made to a borrower experiencing financial difficulty in the form of a term extension. The non-accrual, other commercial and industrial loan, in the amount of $405,000, was charged off in the fourth quarter of 2023.

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The other commercial real estate (non-owner occupied) loan modified in 2023 was in non-accrual status and significantly past due as of December 31, 2024. The loan is secured by a mixed use (retail/office) property located within the City of Pittsburgh, but not in the downtown central business district. The loan was considered in default and the Company initiated formal foreclosure procedures on the property during 2024.