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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 12 Months Ended
Dec. 31, 2020
Loans and Leases Receivable Disclosure [Abstract]  
Composition of Loan Portfolio by Type
The composition of the loan portfolio, net of deferred loan fees is summarized as follows (in thousands):
 December 31, 2020December 31, 2019
Commercial and agricultural:
Commercial and industrial$368,663 $230,018 
Agricultural283 274 
Commercial mortgages:  
Construction61,945 43,962 
Commercial mortgages654,663 604,832 
Residential mortgages239,401 188,338 
Consumer loans:  
Home equity lines and loans78,547 91,784 
Indirect consumer loans120,538 134,973 
Direct consumer loans12,423 15,038 
Total loans, net of deferred loan fees1,536,463 1,309,219 
Interest receivable on loans5,035 3,684 
Total recorded investment in loans$1,541,498 $1,312,903 
Allowance for Loan Losses by Portfolio Segment
The following tables present the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2020, 2019 and 2018, respectively (in thousands):
 December 31, 2020
Allowance for loan lossesCommercial, and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance:$10,227 $8,869 $1,252 $3,130 $23,478 
Charge Offs:(4,068)(2,143)(56)(1,113)(7,380)
Recoveries:89 14 86 398 587 
Net (charge offs) recoveries(3,979)(2,129)30 (715)(6,793)
Provision(1,755)4,756 797 441 4,239 
Ending balance$4,493 $11,496 $2,079 $2,856 $20,924 

 December 31, 2019
Allowance for loan lossesCommercial, and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance:$5,383 $8,184 $1,226 $4,151 $18,944 
Charge Offs:(312)(1)(151)(1,511)(1,975)
Recoveries:59 4 45 456 564 
Net recoveries (charge offs)(253)3 (106)(1,055)(1,411)
Provision5,097 682 132 34 5,945 
Ending balance$10,227 $8,869 $1,252 $3,130 $23,478 

 December 31, 2018
Allowance for loan lossesCommercial, and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance:$6,976 $8,514 $1,316 $4,355 $21,161 
Charge Offs:(3,644)(213)(226)(1,836)(5,919)
Recoveries:47 3 5 494 549 
Net recoveries (charge offs)(3,597)(210)(221)(1,342)(5,370)
Provision2,004 (120)131 1,138 3,153 
Ending balance$5,383 $8,184 $1,226 $4,151 $18,944 
Allowance for Loan Losses and Recorded Investment in Loans Based on Impairment Method
The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2020 and December 31, 2019 (in thousands):
 December 31, 2020
Allowance for loan lossesCommercial
and
Agricultural		Commercial MortgagesResidential MortgagesConsumer LoansTotal
Ending allowance balance attributable to loans:
Individually evaluated for impairment$1,401 $74 $— $52 $1,527 
Collectively evaluated for impairment3,092 11,422 2,079 2,804 19,397 
Total ending allowance balance$4,493 $11,496 $2,079 $2,856 $20,924 
 December 31, 2019
Allowance for loan lossesCommercial
and
Agricultural		Commercial MortgagesResidential MortgagesConsumer LoansTotal
Ending allowance balance attributable to loans:
Individually evaluated for impairment$6,000 $2,097 $— $— $8,097 
Collectively evaluated for impairment4,227 6,772 1,252 3,130 15,381 
Total ending allowance balance$10,227 $8,869 $1,252 $3,130 $23,478 

 December 31, 2020
Loans:Commercial
and
Agricultural		Commercial MortgagesResidential MortgagesConsumer LoansTotal
Loans individually evaluated for impairment$3,400 $5,117 $1,271 $801 $10,589 
Loans collectively evaluated for impairment366,852 714,028 238,742 211,287 1,530,909 
Total ending loans balance$370,252 $719,145 $240,013 $212,088 $1,541,498 

 December 31, 2019
Loans:Commercial
and
Agricultural		Commercial MortgagesResidential MortgagesConsumer LoansTotal
Loans individually evaluated for impairment$6,147 $8,844 $525 $149 $15,665 
Loans collectively evaluated for impairment224,775 641,726 188,349 242,388 1,297,238 
Total ending loans balance$230,922 $650,570 $188,874 $242,537 $1,312,903 
Summary of Impaired Financing Receivables
The following tables present loans individually evaluated for impairment recognized by class of loans as of December 31, 2020 and December 31, 2019, the average recorded investment and interest income recognized by class of loans as of the years ended December 31, 2020, 2019 and 2018 (in thousands):
 December 31, 2020December 31, 2019
 Unpaid Principal BalanceRecorded InvestmentAllowance for Loan Losses AllocatedUnpaid Principal BalanceRecorded InvestmentAllowance for Loan Losses Allocated
With no related allowance recorded:
Commercial and agricultural:
Commercial and industrial$1,960 $1,963 $— $133 $133 $— 
Commercial mortgages:      
Construction188 189 — 247 247 — 
Commercial mortgages6,814 4,760 — 3,501 3,503 — 
Residential mortgages1,283 1,271 — 554 525 — 
Consumer loans:      
Home equity lines and loans645 631 — 171 149 — 
With an allowance recorded:      
Commercial and agricultural:      
Commercial and industrial5,228 1,437 1,401 6,013 6,014 6,000 
Commercial mortgages:      
Commercial mortgages258 168 74 5,093 5,094 2,097 
Consumer loans:      
Home equity lines and loans170 170 52 — — — 
Total$16,546 $10,589 $1,527 $15,712 $15,665 $8,097 
 December 31, 2020December 31, 2019December 31, 2018
 Average Recorded InvestmentInterest Income Recognized (1)Average Recorded InvestmentInterest Income Recognized (1)Average Recorded InvestmentInterest Income Recognized (1)
With no related allowance recorded:
Commercial and agricultural:
Commercial and industrial$936 $16 $248 $— $608 $12 
Commercial mortgages:      
Construction219 8 278 10 337 11 
Commercial mortgages4,103 16 3,605 12 4,193 21 
Residential mortgages952 25 422 44 416 7 
Consumer loans:      
Home equity lines & loans446 7 137 6 60 3 
With an allowance recorded:      
Commercial and agricultural:      
Commercial and industrial4,981 4 3,209 — 3,043 3 
Commercial mortgages:      
Commercial mortgages2,949 — 6,524 — 2,315 4 
Consumer loans:      
Home equity lines and loans104 — — — — — 
Total$14,690 $76 $14,423 $72 $10,972 $61 
(1)  Cash basis interest income approximates interest income recognized.
Recorded Investment in Past Due and Non-Accrual Status by Class of Loans
The following tables present the recorded investment in non-accrual and loans past due 90 days or more and still accruing by class of loans as of December 31, 2020 and December 31, 2019 (in thousands):
Non-accrualLoans Past Due 90 Days or More and Still Accruing
2020201920202019
Commercial and agricultural:
Commercial and industrial$2,167 $6,147 $2 $7 
Commercial mortgages:
Construction55 80 — — 
Commercial mortgages4,415 8,407 — — 
Residential mortgages1,632 2,155 — — 
Consumer loans:
Home equity lines and loans1,159 641 — — 
Indirect consumer loans519 571 — — 
Direct consumer loans5 7 — — 
Total$9,952 $18,008 $2 $7 
The following tables present the aging of the recorded investment in loans as of December 31, 2020 and December 31, 2019 (in thousands):
December 31, 2020
 30 - 59 Days Past Due60 - 89 Days Past Due90 Days or More Past DueTotal Past DueLoans Not Past DueTotal
Commercial and agricultural:
Commercial and industrial$520 $14 $30 $564 $369,404 $369,968 
Agricultural— — — — 284 284 
Commercial mortgages: 
Construction— — — — 62,164 62,164 
Commercial mortgages1,438 3,696 308 5,442 651,539 656,981 
Residential mortgages817 406 461 1,684 238,329 240,013 
Consumer loans: 
Home equity lines and loans521 41 474 1,036 77,725 78,761 
Indirect consumer loans1,268 198 252 1,718 119,135 120,853 
Direct consumer loans34 2 — 36 12,438 12,474 
Total$4,598 $4,357 $1,525 $10,480 $1,531,018 $1,541,498 
December 31, 2019
 30 - 59 Days Past Due60 - 89 Days Past Due90 Days or More Past DueTotal Past DueLoans Not Past DueTotal
Commercial and agricultural:
Commercial and industrial$1,285 $49 $4,398 $5,732 $224,916 $230,648 
Agricultural— — — — 274 274 
Commercial mortgages:   
Construction— — — — 44,082 44,082 
Commercial mortgages440 277 2,165 2,883 603,605 606,488 
Residential mortgages1,016 803 956 2,775 186,099 188,874 
Consumer loans:   
Home equity lines and loans353 151 149 653 91,412 92,065 
Indirect consumer loans1,546 377 355 2,278 133,088 135,366 
Direct consumer loans32 11 6 49 15,057 15,106 
Total$4,672 $1,668 $8,029 $14,370 $1,298,533 $1,312,903 
Loans by Class Modified as Troubled Debt Restructurings
The following table presents loans by class modified as troubled debt restructurings that occurred during the years ended December 31, 2020, 2019 and 2018 (in thousands):
December 31, 2020Number of LoansPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded Investment
Troubled debt restructurings:
Commercial and agricultural:
Commercial and industrial4$2,068 $2,068 
Commercial mortgages:   
Commercial mortgages41,297 1,297 
Residential mortgages4997 997 
Consumer loans:   
Home equity lines and loans3738 738 
Total15$5,100 $5,100 

The TDRs described above increased the allowance for loan losses by $0.2 million and resulted in no charge offs during the year ended December 31, 2020.
December 31, 2019Number of LoansPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded Investment
Troubled debt restructurings:
Commercial mortgages:   
Commercial mortgages14,223 4,223 
Residential mortgages1123 123 
Consumer loans:   
Home equity lines and loans1137 137 
Total3$4,483 $4,483 

The TDRs described above increased the allowance for loan losses by $1.7 million and resulted in no charge offs during the year ended December 31, 2019.
December 31, 2018Number of LoansPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded Investment
Troubled debt restructurings:
Commercial and agricultural:
Commercial and industrial2$491 $491 
Total2$491 $491 

The TDRs described above increased the allowance for loan losses by $0.4 million and resulted in no charge offs during the year ended December 31, 2018.
A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms.

The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification during the year ended December 31, 2020:

December 31, 2020Number of LoansRecorded Investment
Consumer loans:
Home equity lines and loans1$170 
Total1$170 
Risk Category of Recorded Investment of Loans by Class of Loans
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are included in groups of homogeneous loans. Based on the analyses performed as of December 31, 2020 and 2019, the risk category of the recorded investment of loans by class of loans is as follows (in thousands):
 December 31, 2020
 Not RatedPassSpecial MentionSubstandardDoubtfulTotal
Commercial and agricultural:
Commercial and industrial$— $360,500 $2,999 $5,092 $1,377 $369,968 
Agricultural— 284 — — — 284 
Commercial mortgages:      
Construction— 59,885 — 2,279 — 62,164 
Commercial mortgages— 616,090 23,631 16,128 1,132 656,981 
Residential mortgages238,381 — 1,632 — 240,013 
Consumer loans      
Home equity lines and loans77,602 — — 1,159 — 78,761 
Indirect consumer loans120,334 — — 519 — 120,853 
Direct consumer loans12,470 — — 4 — 12,474 
Total$448,787 $1,036,759 $26,630 $26,813 $2,509 $1,541,498 

 December 31, 2019
 Not RatedPassSpecial MentionSubstandardDoubtfulTotal
Commercial and agricultural:
Commercial and industrial$— $208,552 $5,915 $10,361 $5,820 $230,648 
Agricultural— 274 — — — 274 
Commercial mortgages:      
Construction— 40,304 168 3,610 — 44,082 
Commercial mortgages— 577,266 12,451 12,356 4,415 606,488 
Residential mortgages186,719 — — 2,155 — 188,874 
Consumer loans      
Home equity lines and loans91,424 — — 641 — 92,065 
Indirect consumer loans134,795 — — 571 — 135,366 
Direct consumer loans15,099 — — 7 — 15,106 
Total$428,037 $826,396 $18,534 $29,701 $10,235 $1,312,903 
Recorded Investment in Residential and Consumer Loans Based on Payment Activity
The following table presents the recorded investment in residential and consumer loans based on payment activity as of December 31, 2020 and 2019 (in thousands):
 December 31, 2020
 Consumer Loans
 Residential MortgagesHome Equity Lines and LoansIndirect Consumer LoansOther Direct Consumer Loans
Performing$238,381 $77,602 $120,334 $12,470 
Non-Performing1,632 1,159 519 4 
Total$240,013 $78,761 $120,853 $12,474 

 December 31, 2019
 Consumer Loans
 Residential MortgagesHome Equity Lines and LoansIndirect Consumer LoansOther Direct Consumer Loans
Performing$186,719 $91,424 $134,795 $15,099 
Non-Performing2,155 641 571 7 
Total$188,874 $92,065 $135,366 $15,106