v3.25.2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)
 6 Months Ended
Jun. 30, 2025
Credit Loss [Abstract]  
Schedule of Composition of the Loan Portfolio by Type
The composition of the loan portfolio, net of deferred origination fees and costs, is summarized as follows (in thousands):
June 30, 2025December 31, 2024
Commercial and industrial$294,474 $299,521 
Commercial mortgages:
Construction98,504 94,943 
Owner occupied commercial real estate161,432 142,279 
Non-owner occupied commercial real estate1,037,589 979,782 
Residential mortgages278,221 274,979 
Consumer loans:
Home equity lines and loans101,505 93,220 
Indirect consumer loans153,324 178,118 
Direct consumer loans7,365 8,577 
Total loans, net of deferred loan fees and costs2,132,414 2,071,419 
Allowance for credit losses(22,665)(21,388)
Loans, net$2,109,749 $2,050,031 
Schedules of Allowance for Credit Loss
The following tables present the activity in the allowance for credit losses by portfolio segment for the three and six month periods ended June 30, 2025 and 2024 (in thousands):
Three Months Ended June 30, 2025
Allowance for credit lossesCommercial and IndustrialCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance, April 1, 2025$5,153 $12,089 $2,473 $2,807 $22,522 
Charge-offs(772)— — (348)(1,120)
Recoveries4 1 5 118 128 
Net recoveries (charge-offs)(768)1 5 (230)(992)
Provision (1)
139 624 119 253 1,135 
Ending balance, June 30, 2025
$4,524 $12,714 $2,597 $2,830 $22,665 
(1)Additional provision related to off-balance sheet exposure was $10 thousand for the three months ended June 30, 2025.
Three Months Ended June 30, 2024
Allowance for credit lossesCommercial and IndustrialCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance, April 1, 2024$4,516 $10,367 $2,062 $3,526 $20,471 
Charge-offs— — (3)(446)(449)
Recoveries13 1 26 103 143 
Net recoveries (charge-offs)13 1 23 (343)(306)
Provision (1)
365 162 21 318 866 
Ending balance, June 30, 2024
$4,894 $10,530 $2,106 $3,501 $21,031 
(1)Additional provision related to off-balance sheet exposure was $13 thousand for the three months ended June 30, 2024.

Six Months Ended June 30, 2025
Allowance for credit lossesCommercial and IndustrialCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance, January 1, 2025$4,520 $11,214 $2,259 $3,395 $21,388 
Charge-offs(777)— — (742)(1,519)
Recoveries9 2 10 244 265 
Net recoveries (charge-offs)(768)2 10 (498)(1,254)
Provision (credit) (1)
772 1,498 328 (67)2,531 
Ending balance, June 30, 2025
$4,524 $12,714 $2,597 $2,830 $22,665 
(1)Additional provision related to off-balance sheet exposure was a $294 thousand credit for the six months ended June 30, 2025.

Six Months Ended June 30, 2024
Allowance for credit lossesCommercial and IndustrialCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance, January 1, 2024$5,055 $12,026 $2,194 $3,242 $22,517 
Charge-offs— — (19)(797)(816)
Recoveries50 2 49 227 328 
Net recoveries (charge-offs)50 2 30 (570)(488)
Provision (1)
(211)(1,498)(118)829 (998)
Ending balance, June 30, 2024
$4,894 $10,530 $2,106 $3,501 $21,031 
(1)Additional provision related to off-balance sheet exposure was a $163 thousand credit for the six months ended June 30, 2024.
The following table presents the activity in the allowance for credit losses on unfunded commitments for the three and six month periods ended June 30, 2025 and 2024 (in thousands):
For the Three Months EndedFor the Six Months Ended
Allowance for credit losses on unfunded commitments June 30, 2025June 30, 2024June 30, 2025June 30, 2024
Beginning balance $538 $743 $842 $919 
Provision for credit losses on unfunded commitments 10 13 (294)(163)
Ending balance $548 $756 $548 $756 

The following table presents the provision for credit losses on loans and unfunded commitments for the three and six month periods ended June 30, 2025 and 2024 (in thousands):
For the Three Months EndedFor the Six Months Ended
Provision for credit lossesJune 30, 2025June 30, 2024June 30, 2025June 30, 2024
Provision for credit losses on loans $1,135 $866 $2,531 $(998)
Provision for credit losses on unfunded commitments 10 13 (294)(163)
Total provision for credit losses$1,145 $879 $2,237 $(1,161)

The following tables present the balance in the allowance for credit losses by portfolio segment, as of June 30, 2025 and December 31, 2024 (in thousands):
 June 30, 2025
Allowance for credit lossesCommercial and IndustrialCommercial MortgagesResidential MortgagesConsumer LoansTotal
Ending allowance balance attributable to loans:
Individually analyzed$700 $158 $— $— $858 
Collectively analyzed3,824 12,556 2,597 2,830 21,807 
   Total ending allowance balance$4,524 $12,714 $2,597 $2,830 $22,665 

 December 31, 2024
Allowance for credit lossesCommercial and IndustrialCommercial MortgagesResidential MortgagesConsumer LoansTotals
Ending allowance balance attributable to loans:
Individually analyzed$1,446 $106 $— $— $1,552 
Collectively analyzed3,074 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 June 30, 2025 and December 31, 2024 (in thousands):
 June 30, 2025
Amortized cost basis of loans:Commercial and IndustrialCommercial MortgagesResidential MortgagesConsumer LoansTotal
Individually analyzed $861 $3,767 $— $353 $4,981 
Collectively analyzed293,613 1,293,758 278,221 261,841 2,127,433 
   Total ending loans balance$294,474 $1,297,525 $278,221 $262,194 $2,132,414 
 December 31, 2024
Amortized cost basis of loans:Commercial and IndustrialCommercial MortgagesResidential MortgagesConsumer LoansTotal
Individually analyzed$1,512 $4,959 $— $— $6,471 
Collectively analyzed298,009 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 
Schedule of Financing Receivable, Modified
The following tables summarize the amortized cost basis of loans modified during the three and six month periods ended June 30, 2024 (in thousands):

Three Months Ended June 30, 2024
Loans modified under ASU 2022-02:Principal ReductionInterest Rate ReductionTerm ExtensionPayment DelayCombinationTotal
(%) of Loan Class (1)
Residential mortgages— — — 440 — 440 0.16 %
Total$— $— $— $440 $— $440 
(1) Represents amortized cost basis of loans modified during the period as a percentage of the period-end loan balances by class.


Six Months Ended June 30, 2024
Loans modified under ASU 2022-02:Principal ReductionInterest Rate ReductionTerm ExtensionPayment DelayCombinationTotal
(%) of Loan Class (1)
Residential mortgages— — — 440 — 440 0.16 %
Total$— $— $— $440 $— $440 
(1) Represents 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 three and six month periods ended June 30, 2024 (in thousands):


Three Months Ended June 30, 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)
Residential mortgages$——%06
Six Months Ended June 30, 2024
Effect of loan modifications under ASU 2022-02:Principal Reduction
(in thousands)		Weighted-average interest rate reduction (%)Weighted-average term extension
(in months)		Weighted-average payment delay
(in months)
Residential mortgages$——%06
Schedule of Recorded Investment in Past Due and Non-Accrual Status by Class of Loans The following tables present the performance of such loans that were modified in the twelve month periods preceding June 30, 2025 and June 30, 2024 (in thousands):
Twelve Months Ended June 30, 2025
Past Due Status of Modifications under ASU 2022-02:30-59 Days Past Due60-89 Days Past DueGreater Than 89 Days Past DueLoans Not Past Due Total
Commercial and industrial$— $— $— $351 $351 
Commercial mortgages:
Owner occupied commercial real estate— — — 372 372 
Total$— $— $— $723 $723 

Twelve Months Ended June 30, 2024
Past Due Status of Modifications under ASU 2022-02:30-59 Days Past Due60-89 Days Past DueGreater Than 89 Days Past DueLoans Not Past Due Total
Commercial and industrial$— $— $675 $121 $796 
Residential mortgages— — 440 — 440 
Consumer loans:
Home equity lines and loans— — — 116 116 
Total$— $— $1,115 $237 $1,352 
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 June 30, 2025 and December 31, 2024 (in thousands):

Nonaccrual with No Allowance for Credit LossesNonaccrualLoans Past Due 90 Days or More and Still Accruing
June 30, 2025December 31, 2024June 30, 2025December 31, 2024June 30, 2025December 31, 2024
Commercial and industrial$70 $76 $879 $1,534 $— $23 
Commercial mortgages:
Construction— — — — — — 
Owner occupied
commercial real estate		1,298 1,362 1,307 1,377 — — 
Non-owner occupied commercial real estate293 2,619 2,460 3,582 — — 
Residential mortgages1,837 1,372 1,837 1,372 — — 
Consumer loans:
Home equity lines and loans1,012 613 1,012 613 — — 
Indirect consumer loans701 474 703 474 — — 
Direct consumer loans39 2 39 2 — — 
Total$5,250 $6,518 $8,237 $8,954 $— $23 
The following tables present the aging of the amortized cost basis of loans as of June 30, 2025 and December 31, 2024 (in thousands):
June 30, 2025
 30 - 59 Days Past Due60 - 89 Days Past Due90 Days or More Past DueTotal Past DueLoans Not Past DueTotal
Commercial and industrial$6 $— $207 $213 $294,261 $294,474 
Commercial mortgages: 
Construction— — — — 98,504 98,504 
Owner occupied
commercial real estate		— 312 96 408 161,024 161,432 
Non-owner occupied
commercial real estate		52 — 2,298 2,350 1,035,239 1,037,589 
Residential mortgages1,275 425 785 2,485 275,736 278,221 
Consumer loans: 
Home equity lines and loans828 3 194 1,025 100,480 101,505 
Indirect consumer loans1,846 255 246 2,347 150,977 153,324 
Direct consumer loans21 7 13 41 7,324 7,365 
Total$4,028 $1,002 $3,839 $8,869 $2,123,545 $2,132,414 
December 31, 2024
 30 - 59 Days Past Due60 - 89 Days Past Due90 Days or More Past DueTotal Past DueLoans Not Past DueTotal
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 mortgages1,529 662 696 2,887 272,092 274,979 
Consumer loans: 
Home equity lines and loans231 — 364 595 92,625 93,220 
Indirect consumer loans2,101 719 235 3,055 175,063 178,118 
Direct consumer loans14 6 1 21 8,556 8,577 
Total$5,047 $1,588 $5,256 $11,891 $2,059,528 $2,071,419 
Schedule of Analysis of Collateral Dependent Loans
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 June 30, 2025 and December 31, 2024 (in thousands):
June 30, 2025December 31, 2024
Amortized Cost BasisRelated AllowanceAmortized Cost BasisRelated Allowance
Commercial and industrial (3)
$52 $— $130 $65 
Commercial mortgages:
Owner occupied commercial real estate (1) (2)
1,307 9 1,377 15 
Non-owner occupied commercial real estate (1) (2)
2,460 149 3,582 91 
Consumer loans:
Home equity lines and loans (2)
353 — — — 
Total$4,172 $158 $5,089 $171 
(1) Secured by commercial real estate.
(2) Secured by residential real estate.
(3) Secured by business assets.
Schedule of Risk Category of the Recorded Investment of Loans by Class of Loans
Based on the analyses performed as of June 30, 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 six month period ended June 30, 2025, were as follows (in thousands):

Term Loans Amortized Cost by Origination YearRevolving Loans Amortized CostRevolving Loans Converted to TermTotal
20252024202320222021Prior
Commercial & industrial
Pass$28,884 $37,956 $28,045 $29,161 $14,812 $20,222 $107,196 $2,628 $268,904 
Special mention426 639 537 2,463 475 7,966 6,435 2,658 21,599 
Substandard — 351 — — 55 — 2,722 106 3,234 
Doubtful— 20 — — — 620 — 97 737 
Total29,310 38,966 28,582 31,624 15,342 28,808 116,353 5,489 294,474 
Gross charge-offs — — — — 772 — 5 — 777 
Construction
Pass8,170 27,518 37,422 14,542 8,938 1,431 483 — 98,504 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total8,170 27,518 37,422 14,542 8,938 1,431 483 — 98,504 
Gross charge-offs— — — — — — — — — 
Owner occupied commercial real estate
Pass 21,793 23,730 17,881 23,948 13,836 37,041 888 47 139,164 
Special mention1,215 — 4,924 2,290 6,660 2,945 2,000 — 20,034 
Substandard— — 96 820 312 997 — — 2,225 
Doubtful— — — — — 9 — — 9 
Total23,008 23,730 22,901 27,058 20,808 40,992 2,888 47 161,432 
Gross charge-offs— — — — — — — — — 
Non-owner occupied commercial real estate
Pass72,030 101,031 114,898 263,157 139,692 309,743 7,391 751 1,008,693 
Special mention2,050 — 3,571 7,652 7,587 5,106 — — 25,966 
Substandard— — 2,167 137 — 626 — — 2,930 
Doubtful— — — — — — — — — 
Total74,080 101,031 120,636 270,946 147,279 315,475 7,391 751 1,037,589 
Gross charge-offs— — — — — — — — — 
Residential mortgages
Not rated14,660 23,986 19,916 53,158 52,883 111,654 — — 276,257 
Substandard — — — 221 563 1,180 — — 1,964 
Total 14,660 23,986 19,916 53,379 53,446 112,834 — — 278,221 
Gross charge-offs— — — — — — — — — 
Home equity lines and loans
Not rated4,695 12,961 9,502 12,242 4,486 11,535 43,674 1,283 100,378 
Special mention— — — 114 — — — — 114 
Substandard — — 47 170 — 188 94 514 1,013 
Total4,695 12,961 9,549 12,526 4,486 11,723 43,768 1,797 101,505 
Gross charge-offs— — — — — — — — — 
Indirect consumer
Not rated11,794 32,204 42,264 53,045 9,286 4,007 — — 152,600 
Substandard — 153 272 188 56 55 — — 724 
Total11,794 32,357 42,536 53,233 9,342 4,062 — — 153,324 
Gross charge-offs— 97 329 168 67 35 — — 696 
Direct consumer
Not rated1,013 1,793 1,124 941 127 199 2,144 5 7,346 
Substandard— 8 — — — — 10 1 19 
Total 1,013 1,801 1,124 941 127 199 2,154 6 7,365 
Gross charge-offs— 12 16 4 3 — 11 — 46 
Total loans $166,730 $262,350 $282,666 $464,249 $259,768 $515,524 $173,037 $8,090 $2,132,414 
Total gross charge-offs$— $109 $345 $172 $842 $35 $16 $— $1,519 
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 YearRevolving Loans Amortized CostRevolving Loans Converted to TermTotal
20242023202220212020Prior
Commercial & industrial
Pass$44,130 $32,157 $34,862 $16,787 $8,326 $27,452 $108,819 $1,380 $273,913 
Special mention810 262 3,933 — 4,390 3,673 10,203 62 23,333 
Substandard 99 — 8 733 30 — 379 318 1,567 
Doubtful21 — — — — 687 — — 708 
Total45,060 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
Pass19,344 46,954 17,568 9,058 — 1,536 483 — 94,943 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total19,344 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 
Total23,196 23,651 27,808 21,409 9,513 34,550 2,097 55 142,279 
Gross charge-offs— — — — — — — — — 
Non-owner occupied commercial real estate
Pass97,155 109,354 267,280 141,864 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— — — — — — — — — 
Total97,155 111,502 273,361 149,657 98,842 241,792 6,696 777 979,782 
Gross charge-offs— — — — — — — — — 
Residential mortgages
Not rated21,574 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 rated13,833 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 
Total13,833 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 rated37,746 52,480 67,237 13,266 4,194 2,726 — — 177,649 
Substandard 75 157 107 79 11 40 — — 469 
Total37,821 52,637 67,344 13,345 4,205 2,766 — — 178,118 
Gross charge-offs47 517 525 161 99 116 — — 1,465 
Direct consumer
Not rated2,420 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-offs5 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