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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 6 Months Ended
Jun. 30, 2021
Loans and Leases Receivable Disclosure [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, 2021December 31, 2020
Commercial and agricultural:
Commercial and industrial$340,441 $368,663 
Agricultural420 283 
Commercial mortgages:
Construction67,743 61,945 
Commercial mortgages, other696,916 654,663 
Residential mortgages246,667 239,401 
Consumer loans:
Home equity lines and loans74,129 78,547 
Indirect consumer loans120,612 120,538 
Direct consumer loans11,071 12,423 
Total loans, net of deferred loan fees and costs1,557,999 1,536,463 
Interest receivable on loans4,823 5,035 
Total recorded investment in loans$1,562,822 $1,541,498 
Schedule of Allowance for Loan Losses by Portfolio Segment
The following tables present the activity in the allowance for loan losses by portfolio segment for the three month periods ended June 30, 2021 and 2020 (in thousands):
Three Months Ended June 30, 2021
Allowance for loan lossesCommercial and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance$4,337 $11,787 $2,115 $2,670 $20,909 
Charge-offs(25)— (46)(156)(227)
Recoveries10 1 10 123 144 
Net recoveries (charge-offs)(15)1 (36)(33)(83)
Provision(694)1,175 (288)(343)(150)
Ending balance$3,628 $12,963 $1,791 $2,294 $20,676 
Three Months Ended June 30, 2020
Allowance for loan lossesCommercial and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance$11,191 $10,472 $1,421 $3,149 $26,233 
Charge-offs(36)(2,143)(13)(297)(2,489)
Recoveries5 — 49 72 126 
Net recoveries (charge-offs)(31)(2,143)36 (225)(2,363)
Provision(2,833)2,220 434 439 260 
Ending balance$8,327 $10,549 $1,891 $3,363 $24,130 
The following tables present the activity in the allowance for loan losses by portfolio segment for the six month periods ended June 30, 2021 and 2020 (in thousands):

Six Months Ended June 30, 2021
Allowance for loan lossesCommercial and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance$4,493 $11,496 $2,079 $2,856 $20,924 
Charge-offs(25)— (71)(320)(416)
Recoveries275 1 10 291 577 
Net recoveries (charge-offs)250 1 (61)(29)161 
Provision(1,115)1,466 (227)(533)(409)
Ending balance$3,628 $12,963 $1,791 $2,294 $20,676 
Six Months Ended June 30, 2020
Allowance for loan lossesCommercial and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance$10,227 $8,869 $1,252 $3,130 $23,478 
Charge-offs(65)(2,143)(13)(700)(2,921)
Recoveries8 — 48 207 263 
Net recoveries (charge-offs)(57)(2,143)35 (493)(2,658)
Provision(1,843)3,823 604 726 3,310 
Ending balance$8,327 $10,549 $1,891 $3,363 $24,130 
Schedule of Allowance for Loan Losses and the 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 June 30, 2021 and December 31, 2020 (in thousands):
 June 30, 2021
Allowance for loan losses:Commercial and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Ending allowance balance attributable to loans:
Individually evaluated for impairment$1,389 $1,781 $— $74 $3,244 
Collectively evaluated for impairment2,239 11,182 1,791 2,220 17,432 
   Total ending allowance balance$3,628 $12,963 $1,791 $2,294 $20,676 

 December 31, 2020
Allowance for loan losses:Commercial and AgriculturalCommercial 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 
 June 30, 2021
Loans:Commercial and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Loans individually evaluated for impairment$3,263 $8,565 $954 $346 $13,128 
Loans collectively evaluated for  impairment338,731 758,635 246,355 205,973 1,549,694 
   Total ending loans balance$341,994 $767,200 $247,309 $206,319 $1,562,822 

 December 31, 2020
Loans:Commercial and AgriculturalCommercial 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 
Schedule of Impaired Financing Receivables
The following table presents loans individually evaluated for impairment recognized by class of loans as of June 30, 2021 and December 31, 2020 (in thousands):
 June 30, 2021December 31, 2020
With no related allowance recorded:Unpaid Principal BalanceRecorded InvestmentAllowance for Loan Losses AllocatedUnpaid Principal BalanceRecorded InvestmentAllowance for Loan Losses Allocated
Commercial and agricultural:
Commercial and industrial$1,785 $1,785 $— $1,960 $1,963 $— 
Commercial mortgages:
Construction159 160 — 188 189 — 
Commercial mortgages, other7,340 4,679 — 6,814 4,760 — 
Residential mortgages970 954 — 1,283 1,271 — 
Consumer loans:
Home equity lines and loans207 190 — 645 631 — 
With an allowance recorded:
Commercial and agricultural:
Commercial and industrial5,357 1,478 1,389 5,228 1,437 1,401 
Commercial mortgages:
Commercial mortgages, other3,808 3,726 1,781 258 168 74 
Consumer loans:
Home equity lines and loans156 156 74 170 170 52 
Total$19,782 $13,128 $3,244 $16,546 $10,589 $1,527 
The following table presents the average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans for the three and six month periods ended June 30, 2021 and 2020 (in thousands):
 Three Months Ended 
 June 30, 2021		Three Months Ended 
 June 30, 2020		Six Months Ended 
 June 30, 2021		Six Months Ended 
 June 30, 2020
With no related allowance recorded:Average Recorded InvestmentInterest Income Recognized
(1)		Average Recorded InvestmentInterest Income Recognized
(1)		Average Recorded InvestmentInterest Income Recognized
(1)		Average Recorded InvestmentInterest Income Recognized
(1)
Commercial and agricultural:
Commercial and industrial$1,823 $13 $597 $— $1,869 $26 $442 $— 
Commercial mortgages:
Construction168 2 226 2 175 3 233 4 
Commercial mortgages, other4,780 8 3,982 — 4,774 15 3,822 — 
Residential mortgages959 10 844 5 1,063 18 738 10 
Consumer loans:
Home equity lines & loans193 2 403 2 339 3 318 3 
With an allowance recorded:
Commercial and agricultural:
Commercial and industrial1,498 — 5,665 2 1,478 2 5,781 2 
Commercial mortgages:
Commercial mortgages, other1,946 — 3,613 8 1,353 — 4,107 8 
Consumer loans:
Home equity lines and loans158 — 90 — 162 — 60 — 
Total$11,525 $35 $15,420 $19 $11,213 $67 $15,501 $27 
(1)Cash basis interest income approximates interest income recognized.
The following table presents the recorded investment in non-accrual and loans past due 90 days or more and still accruing by class of loans as of June 30, 2021 and December 31, 2020 (in thousands):
Non-accrualLoans Past Due 90 Days or More and Still Accruing
June 30, 2021December 31, 2020June 30, 2021December 31, 2020
Commercial and agricultural:
Commercial and industrial$2,173 $2,167 $3 $2 
Commercial mortgages:
Construction44 55 — — 
Commercial mortgages, other4,348 4,415 — — 
Residential mortgages916 1,632 — — 
Consumer loans:
Home equity lines and loans770 1,159 — — 
Indirect consumer loans318 519 — — 
Direct consumer loans14 5 — — 
Total$8,583 $9,952 $3 $2 
Schedule of Recorded Investment in Past Due and Non-Accrual Status by Class of Loans
The following tables present the aging of the recorded investment in loans as of June 30, 2021 and December 31, 2020 (in thousands):
June 30, 2021
 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$829 $— $25 $854 $340,718 $341,572 
Agricultural— — — — 422 422 
Commercial mortgages: 
Construction— — — — 67,968 67,968 
Commercial mortgages, other562 174 325 1,061 698,171 699,232 
Residential mortgages326 28 397 751 246,558 247,309 
Consumer loans: 
Home equity lines and loans273 — 389 662 73,647 74,309 
Indirect consumer loans569 102 106 777 120,118 120,895 
Direct consumer loans28 — 3 31 11,084 11,115 
Total$2,587 $304 $1,245 $4,136 $1,558,686 $1,562,822 

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 mortgages, other1,438 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 
Schedule of Loans by Class Modified as Troubled Debt Restructurings
The following table presents loans by class modified as TDRs that occurred during the three month period ended June 30, 2021 and June 30, 2020 (dollars in thousands):

June 30, 2021Number of LoansPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded Investment
Troubled debt restructurings:
Commercial mortgages:
Commercial mortgages, other2 $3,606 $3,606 
Total2 $3,606 $3,606 
June 30, 2020Number of LoansPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded Investment
Troubled debt restructurings:
Commercial and agricultural:
Commercial and industrial2 $929 $929 
Agricultural
Commercial mortgages:
Commercial mortgages, other4 1,297 1,297 
Residential mortgages3 677 677 
Consumer loans:
Home equity lines and loans3 738 738 
Total12 $3,641 $3,641 
The TDRs described above increased the allowance for loan losses by $1.7 million and resulted in no charge-offs during the three month period ended June 30, 2021. The TDRs described above increased the allowance for loan losses by $0.2 million and resulted in no charge-offs during the three month period ended June 30, 2020.
The following table presents loans by class modified as TDRs that occurred during the six month period ended June 30, 2021 and June 30, 2020 (dollars in thousands):
June 30, 2021Number of LoansPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded Investment
Troubled debt restructurings:
Commercial mortgages, other4 $6,094 $6,094 
Total4 $6,094 $6,094 
June 30, 2020Number of LoansPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded Investment
Troubled debt restructurings:
Commercial and agricultural:
Commercial and industrial2 $929 $929 
Agricultural
Commercial mortgages:
Commercial mortgages, other4 1,297 1,297 
Residential mortgages3 677 677 
Consumer loans:
Home equity lines and loans3 738 738 
Total12 $3,641 $3,641 
Schedule of Risk Category of the Recorded Investment of Loans by Class of Loans Based on the analyses performed as of June 30, 2021 and December 31, 2020, the risk category of the recorded investment of loans by class of loans is as follows (in thousands):
 June 30, 2021
 Not RatedPassSpecial MentionSubstandardDoubtfulTotal
Commercial and agricultural:
Commercial and industrial$— $332,300 $3,529 $4,523 $1,220 $341,572 
Agricultural— 422 — — — 422 
Commercial mortgages:
Construction— 67,209 — 759 — 67,968 
Commercial mortgages— 659,431 22,895 15,780 1,126 699,232 
Residential mortgages246,393 — — 916 — 247,309 
Consumer loans:
Home equity lines and loans73,539 — — 770 — 74,309 
Indirect consumer loans120,577 — — 318 — 120,895 
Direct consumer loans11,101 — — 14 — 11,115 
Total$451,610 $1,059,362 $26,424 $23,080 $2,346 $1,562,822 
 December 31, 2020
 Not RatedPassSpecial MentionSubstandardDoubtfulTotal
Commercial and agricultural:
Commercial and industrial$— $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 
Schedule of Recorded Investment in Residential and Consumer Loans Based on Payment Activity The following tables present the recorded investment in residential and consumer loans based on payment activity as of June 30, 2021 and December 31, 2020 (in thousands):
 June 30, 2021
 Consumer Loans
 Residential MortgagesHome Equity Lines and LoansIndirect Consumer LoansOther Direct Consumer Loans
Performing$246,394 $73,539 $120,576 $11,101 
Non-Performing916 770 318 14 
 $247,310 $74,309 $120,894 $11,115 

 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 
 $240,013 $78,761 $120,853 $12,474