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LOANS (Tables)
 12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Major classifications of loans as of the dates indicated were as follows:

Major classifications of loans as of the dates indicated were as follows:

 

   December 31,   December 31, 
   2022   2021 
   (In thousands) 
Commercial real estate  $1,069,323   $979,969 
Residential real estate:          
Residential one-to-four family   589,503    552,332 
Home equity   105,557    99,759 
Total residential real estate   695,060    652,091 
           
Commercial and industrial:          
Paycheck protection program (“PPP”) loans   2,274    25,329 
Commercial and industrial   217,574    201,340 
Total commercial and industrial   219,848    226,669 
           
Consumer   5,045    4,250 
Total gross loans   1,989,276    1,862,979 
Unamortized PPP loan fees   (109)   (781)
Unearned premiums and deferred loan fees and costs, net   2,233    2,518 
Total loans, net   1,991,400    1,864,716 
Allowance for loan losses   (19,931)   (19,787)
 Net loans  $1,971,469   $1,844,929 
A summary of the activity in the balances of mortgage servicing rights follows:

A summary of the activity in the balances of mortgage servicing rights follows:

 

               
   Years Ended December 31, 
   2022   2021 
   (In thousands) 
Balance at the beginning of year:  $693   $153 
Capitalized mortgage servicing rights   2    628 
Amortization   (145)   (86)
Write-down of mortgage servicing asset to fair value   —    (2)
Balance at the end of year  $550   $693 
Fair value at the end of year  $794   $739 
An analysis of changes in the allowance for loan losses by segment for the years ended December 31, 2022, 2021 and 2020 is as follows:

An analysis of changes in the allowance for loan losses by segment for the years ended December 31, 2022, 2021 and 2020 is as follows:

 

   Commercial Real Estate   Residential Real Estate   Commercial and Industrial   Consumer   Unallocated   Total 
   (In thousands) 
Balance at December 31, 2019  $6,807   $3,920   $3,183   $203   $(11)  $14,102 
Provision   6,262    408    939    129    37    7,775 
Charge-offs   (107)   (177)   (543)   (136)   —    (963)
Recoveries   58    89    51    45    —    243 
Balance at December 31, 2020  $13,020   $4,240   $3,630   $241   $26   $21,157 
Provision (credit)   46    (349)   (644)   35    (13)   (925)
Charge-offs   (103)   (44)   (370)   (128)   —    (645)
Recoveries   7    117    27    49    —    200 
Balance at December 31, 2021  $12,970   $3,964   $2,643   $197   $13   $19,787 
Provision (credit)   (434)   344    586    202    2    700 
Charge-offs   (337)   (28)   (92)   (216)   —    (673)
Recoveries   —    32    23    62    —    117 
Balance at December 31, 2022  $12,199   $4,312   $3,160   $245   $15   $19,931 
The following table presents information pertaining to the allowance for loan losses by segment as of the dates indicated:

The following table presents information pertaining to the allowance for loan losses by segment as of the dates indicated:

 

   Commercial Real Estate   Residential Real Estate   Commercial and Industrial   Consumer   Unallocated   Total 
   (In thousands) 
December 31, 2022                        
Amount of allowance for impaired loans  $ —   $ —   $ —   $ —   $ —   $ — 
Amount of allowance for non-impaired loans   12,199    4,312    3,160    245    15    19,931 
Total allowance for loan losses  $12,199   $4,312   $3,160   $245   $15   $19,931 
                               
Impaired loans  $9,178   $3,623   $407   $—   $—   $13,208 
Non-impaired loans   1,056,886    689,776    219,163    5,045    —    1,970,870 
Impaired loans acquired with deteriorated credit quality   3,259    1,661    278    —    —    5,198 
Total loans  $1,069,323   $695,060   $219,848   $5,045   $—   $1,989,276 
                               
   Commercial Real Estate   Residential Real Estate   Commercial and Industrial   Consumer   Unallocated   Total 
December 31, 2021(1)                              
Amount of allowance for impaired loans  $—   $—   $—   $—   $—   $— 
Amount of allowance for non-impaired loans   12,970    3,964    2,643    197    13    19,787 
Total allowance for loan losses  $12,970   $3,964   $2,643   $197   $13   $19,787 
                               
Impaired loans  $9,601   $3,223   $699   $22   $—   $13,545 
Non-impaired loans   965,577    647,098    200,271    4,228    —    1,817,174 
Impaired loans acquired with deteriorated credit quality   4,791    1,770    370    —    —    6,931 
Total loans  $979,969   $652,091   $201,340   $4,250   $—   $1,837,650 

 

 

(1)December 31, 2021 non-impaired loan balances exclude PPP loans.
The following tables present an age analysis of past due loans as of the dates indicated:

The following tables present an age analysis of past due loans as of the dates indicated:

 

   30 – 59 Days Past Due   60 – 89 Days Past Due   90 Days or More Past Due  

Total

Past Due Loans

  

Total

Current Loans

  

Total

Loans

   Nonaccrual Loans 
   (In thousands) 
December 31, 2022                            
                                    
Commercial real estate  $—   $211   $1,404   $1,615   $1,067,708   $1,069,323   $1,933 
Residential real estate:                                   
Residential one-to-four family   1,768    100    414    2,282    587,221    589,503    3,290 
Home equity   209    97    51    357    105,200    105,557    181 
Commercial and industrial   170    10    22    202    219,646    219,848    290 
Consumer   13    —    —    13    5,032    5,045    — 

Total loans 

  $2,160   $418   $1,891   $4,469   $1,984,807   $1,989,276   $5,694 
                                    
December 31, 2021(1)                                   
Commercial real estate  $139   $—   $436   $575   $979,394   $979,969   $1,224 
Residential real estate:                                   
Residential one-to-four family   787    41    507    1,335    550,997    552,332    3,214 
Home equity   57    5    63    125    99,634    99,759    94 
Commercial and industrial   58    10    22    90    201,250    201,340    410 
Consumer   5    —    11    16    4,234    4,250    22 
Total loans  $1,046   $56   $1,039   $2,141   $1,835,509   $1,837,650   $4,964 

 

 

(1)December 31, 2021 balances exclude PPP loans.
The following is a summary of impaired loans by class:

The following is a summary of impaired loans by class:

 

               Year Ended 
   At December 31, 2022   December 31, 2022 
   Recorded Investment   Unpaid Principal Balance   Related Allowance   Average Recorded Investment   Interest Income Recognized 
Impaired Loans (1)  (In thousands) 
Commercial real estate  $12,437   $13,795   $—   $13,427   $248 
Residential real estate:                         
Residential one-to-four family   5,088    5,823    —    4,792    59 
Home equity   196    214    —    172    1 
Commercial and industrial   685    3,095    —    891    66 
Consumer   —    —    —    3    — 
Total impaired loans  $18,406   $22,927   $—   $19,285   $374 

 

(1)Includes loans acquired with deteriorated credit quality and performing troubled debt restructurings.

 

               Year Ended 
   At December 31, 2021   December 31, 2021 
   Recorded Investment   Unpaid Principal Balance   Related Allowance   Average Recorded Investment   Interest Income Recognized 
Impaired Loans (1)  (In thousands) 
Commercial real estate  $14,392   $15,563   $—   $15,757   $469 
Residential real estate:                         
Residential one-to-four family   4,881    5,381    —    5,693    233 
Home equity   112    136    —    146    7 
Commercial and industrial   1,069    3,850    —    2,551    131 
Consumer   22    37    —    25    3 
Total impaired loans  $20,476   $24,967   $—   $24,172   $843 

 

(1)Includes loans acquired with deteriorated credit quality and performing troubled debt restructurings.
The following is a summary of loans acquired with evidence of credit deterioration from Chicopee as of December 31, 2022.

The following is a summary of loans acquired with evidence of credit deterioration from Chicopee as of December 31, 2022.

 

    Contractual Required Payments Receivable   Cash Expected To Be Collected   Non-Accretable Discount   Accretable Yield   Loans Receivable 
    (In thousands) 
Balance at December 31, 2021   $12,134   $9,430   $2,704   $2,499   $6,931 
Collections    (1,792)   (1,576)   (216)   (213)   (1,363)
Dispositions    (589)   (439)   (150)   (69)   (370)
Balance at December 31, 2022   $9,753   $7,415   $2,338   $2,217   $5,198 
The following table presents our loans by risk rating for the periods indicated:

The following table presents our loans by risk rating for the periods indicated:

 

   Commercial Real Estate   Residential  One-to-Four Family   Home Equity   Commercial and Industrial   Consumer   Total 
   (In thousands) 
December 31, 2022                        
Pass (Rated 1 – 4)  $1,036,337   $585,292   $105,248   $193,415   $5,027   $1,925,319 
Special Mention (Rated 5)   16,035    —    —    5,623    —    21,658 
Substandard (Rated 6)   16,951    4,211    309    20,810    18    42,299 
Total  $1,069,323   $589,503   $105,557   $219,848   $5,045   $1,989,276 

 

    Commercial Real Estate    Residential  One-to-Four Family    

Home Equity

    

Commercial and Industrial

    Consumer    Total 
December 31, 2021   (In thousands) 
Pass (Rated 1 – 4)  $913,063   $547,980   $99,503   $215,605   $4,228   $1,780,379 
Special Mention (Rated 5)   48,765    —    —    2,777    —    51,542 
Substandard (Rated 6)   18,141    4,352    256    8,287    22    31,058 
Total  $979,969   $552,332   $99,759   $226,669   $4,250   $1,862,979