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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 12 Months Ended
Dec. 31, 2022
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, 2022December 31, 2021
Commercial and agricultural:
Commercial and industrial$252,044 $256,893 
Agricultural249 394 
Commercial mortgages:  
Construction108,243 82,204 
Commercial mortgages888,670 720,358 
Residential mortgages285,672 259,334 
Consumer loans:  
Home equity lines and loans81,401 70,670 
Indirect consumer loans202,124 118,569 
Direct consumer loans11,045 9,827 
Total loans, net of deferred loan fees1,829,448 1,518,249 
Interest receivable on loans6,548 4,133 
Total recorded investment in loans$1,835,996 $1,522,382 
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, 2022 and 2021, respectively (in thousands):
 December 31, 2022
Allowance for loan lossesCommercial, and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance:$3,591 $13,556 $1,803 $2,075 $21,025 
Charge Offs:(20)(687)(17)(770)(1,494)
Recoveries:42 3 40 597 682 
Net (charge offs) recoveries22 (684)23 (173)(812)
Provision(240)(1,296)19 963 (554)
Ending balance$3,373 $11,576 $1,845 $2,865 $19,659 

 December 31, 2021
Allowance for loan lossesCommercial, and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance:$4,493 $11,496 $2,079 $2,856 $20,924 
Charge Offs:(28)(43)(75)(593)(739)
Recoveries:312 3 10 498 823 
Net recoveries (charge offs)284 (40)(65)(95)84 
Provision(1,186)2,100 (211)(686)17 
Ending balance$3,591 $13,556 $1,803 $2,075 $21,025 
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, 2022 and December 31, 2021 (in thousands):
 December 31, 2022
Allowance for loan lossesCommercial
and
Agricultural		Commercial MortgagesResidential MortgagesConsumer LoansTotal
Ending allowance balance attributable to loans:
Individually evaluated for impairment$1,078 $38 $— $31 $1,147 
Collectively evaluated for impairment2,295 11,538 1,845 2,834 18,512 
Total ending allowance balance$3,373 $11,576 $1,845 $2,865 $19,659 


 December 31, 2021
Allowance for loan lossesCommercial
and
Agricultural		Commercial MortgagesResidential MortgagesConsumer LoansTotal
Ending allowance balance attributable to loans:
Individually evaluated for impairment$1,394 $1,571 $— $65 $3,030 
Collectively evaluated for impairment2,197 11,985 1,803 2,010 17,995 
Total ending allowance balance$3,591 $13,556 $1,803 $2,075 $21,025 




 December 31, 2022
Loans:Commercial
and
Agricultural		Commercial MortgagesResidential MortgagesConsumer LoansTotal
Loans individually evaluated for impairment$2,113 $4,384 $760 $265 $7,522 
Loans collectively evaluated for impairment251,178 996,477 285,685 295,134 1,828,474 
Total ending loans balance$253,291 $1,000,861 $286,445 $295,399 $1,835,996 


 December 31, 2021
Loans:Commercial
and
Agricultural		Commercial MortgagesResidential MortgagesConsumer LoansTotal
Loans individually evaluated for impairment$2,427 $7,967 $938 $315 $11,647 
Loans collectively evaluated for impairment255,586 796,858 259,029 199,262 1,510,735 
Total ending loans balance$258,013 $804,825 $259,967 $199,577 $1,522,382 
Summary of Impaired Financing Receivables
The following tables present loans individually evaluated for impairment recognized by class of loans as of December 31, 2022 and December 31, 2021, the average recorded investment and interest income recognized by class of loan as of the years ended December 31, 2022 and 2021 (in thousands):
 December 31, 2022December 31, 2021
 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$1,026 $1,025 $— $954 $948 $— 
Commercial mortgages:      
Construction5 5 — 129 130 — 
Commercial mortgages4,346 4,341 — 6,940 4,278 — 
Residential mortgages767 760 — 951 938 — 
Consumer loans:      
Home equity lines and loans154 138 — 185 169 — 
With an allowance recorded:      
Commercial and agricultural:      
Commercial and industrial1,086 1,088 1,078 5,350 1,479 1,394 
Commercial mortgages:      
Commercial mortgages38 38 38 3,550 3,559 1,571 
Consumer loans:      
Home equity lines and loans126 127 31 146 146 65 
Total$7,548 $7,522 $1,147 $18,205 $11,647 $3,030 

 December 31, 2022December 31, 2021
 Average Recorded InvestmentInterest Income Recognized (1)Average Recorded InvestmentInterest Income Recognized (1)
With no related allowance recorded:
Commercial and agricultural:
Commercial and industrial$814 $— $1,505 $6 
Commercial mortgages:    
Construction71 — 159 6 
Commercial mortgages4,211 14 4,650 30 
Residential mortgages864 37 1,015 40 
Consumer loans:    
Home equity lines & loans153 — 273 7 
With an allowance recorded:    
Commercial and agricultural:    
Commercial and industrial1,453 5 1,505 8 
Commercial mortgages:    
Commercial mortgages1,258 — 2,236 49 
Consumer loans:    
Home equity lines and loans137 — 157 — 
Total$8,961 $56 $11,500 $146 
(1)  Cash basis interest income approximates interest income recognized.
Recorded Investment in Past Due and Non-Accrual Status by Class of Loans
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 December 31, 2022 and December 31, 2021 (in thousands):
Non-accrualLoans Past Due 90 Days or More and Still Accruing
2022202120222021
Commercial and agricultural:
Commercial and industrial$1,946 $1,932 $1 $4 
Commercial mortgages:
Construction5 34 — — 
Commercial mortgages3,928 3,844 — — 
Residential mortgages986 1,039 — — 
Consumer loans:
Home equity lines and loans760 790 — — 
Indirect consumer loans540 462 — — 
Direct consumer loans13 13 — — 
Total$8,178 $8,114 $1 $4 
The following tables present the aging of the recorded investment in loans as of December 31, 2022 and December 31, 2021 (in thousands):
December 31, 2022
 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$74 $3 $1 $78 $252,963 $253,041 
Agricultural— — — — 250 250 
Commercial mortgages: 
Construction— — — — 108,671 108,671 
Commercial mortgages1,066 — 486 1,552 890,638 892,190 
Residential mortgages1,386 715 294 2,395 284,050 286,445 
Consumer loans: 
Home equity lines and loans194 122 442 758 80,944 81,702 
Indirect consumer loans1,407 195 250 1,852 200,738 202,590 
Direct consumer loans2 19 1 22 11,085 11,107 
Total$4,129 $1,054 $1,474 $6,657 $1,829,339 $1,835,996 


December 31, 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$413 $148 $26 $587 $257,031 $257,618 
Agricultural— — — — 395 395 
Commercial mortgages:   
Construction— — — — 82,435 82,435 
Commercial mortgages24 224 1,302 1,550 720,840 722,390 
Residential mortgages580 32 652 1,264 258,703 259,967 
Consumer loans:   
Home equity lines and loans256 69 424 749 70,105 70,854 
Indirect consumer loans1,179 424 255 1,858 116,997 118,855 
Direct consumer loans24 11 13 48 9,820 9,868 
Total$2,476 $908 $2,672 $6,056 $1,516,326 $1,522,382 
Loans by Class Modified as Troubled Debt Restructurings
The following table presents loans by class modified as troubled debt restructurings that occurred during the year ended December 31, 2021 (in thousands):
December 31, 2021Number of LoansPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded Investment
Troubled debt restructurings:
Commercial and agricultural:
Commercial and industrial2$502 $502 
Commercial mortgages:   
Commercial mortgages46,094 6,094 
Total6$6,596 $6,596 
Risk Category of Recorded Investment of Loans by Class of Loans
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are included in groups of homogeneous loans. Based on the analyses performed as of December 31, 2022 and 2021, the risk category of the recorded investment of loans by class of loans is as follows (in thousands):
 December 31, 2022
 Not RatedPassSpecial MentionSubstandardDoubtfulTotal
Commercial and agricultural:
Commercial and industrial$— $235,900 $13,349 $2,899 $893 $253,041 
Agricultural— 250 — — — 250 
Commercial mortgages:      
Construction— 108,488 178 5 — 108,671 
Commercial mortgages— 860,389 23,938 7,825 38 892,190 
Residential mortgages285,459 — 986 — 286,445 
Consumer loans      
Home equity lines and loans80,942 — — 760 — 81,702 
Indirect consumer loans202,050 — — 540 — 202,590 
Direct consumer loans11,094 — — 13 — 11,107 
Total$579,545 $1,205,027 $37,465 $13,028 $931 $1,835,996 
 December 31, 2021
 Not RatedPassSpecial MentionSubstandardDoubtfulTotal
Commercial and agricultural:
Commercial and industrial$— $250,529 $2,892 $3,108 $1,089 $257,618 
Agricultural— 395 — — — 395 
Commercial mortgages:      
Construction— 82,404 — 31 — 82,435 
Commercial mortgages— 672,741 31,072 17,458 1,119 722,390 
Residential mortgages258,928 — — 1,039 — 259,967 
Consumer loans      
Home equity lines and loans70,064 — — 790 — 70,854 
Indirect consumer loans118,393 — — 462 — 118,855 
Direct consumer loans9,855 — — 13 — 9,868 
Total$457,240 $1,006,069 $33,964 $22,901 $2,208 $1,522,382 
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, 2022 and 2021 (in thousands):
 December 31, 2022
 Consumer Loans
 Residential MortgagesHome Equity Lines and LoansIndirect Consumer LoansOther Direct Consumer Loans
Performing$285,459 $80,942 $202,050 $11,094 
Non-Performing986 760 540 13 
Total$286,445 $81,702 $202,590 $11,107 

 December 31, 2021
 Consumer Loans
 Residential MortgagesHome Equity Lines and LoansIndirect Consumer LoansOther Direct Consumer Loans
Performing$258,928 $70,064 $118,393 $9,855 
Non-Performing1,039 790 462 13 
Total$259,967 $70,854 $118,855 $9,868