Meridian (MRBK) 10-Q 9 Nov 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2023	Nov. 03, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	000-55983
Entity Incorporation, State or Country Code	PA
Entity Tax Identification Number	83-1561918
Entity Address, Address Line One	9 Old Lincoln Highway
Entity Address, City or Town	Malvern
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19355
City Area Code	484
Local Phone Number	568-5000
Title of 12(b) Security	Common Stock, $1 par value
Trading Symbol	MRBK
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,177,751
Entity Registrant Name	Meridian Corp
Entity Central Index Key	0001750735
Amendment Flag	false
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Assets:
Cash and due from banks	$ 13,737	$ 11,299
Interest-bearing deposits at other banks	46,022	27,092
Cash and cash equivalents	59,759	38,391
Securities available-for-sale, at fair value (amortized cost of $138,014 and $148,976, respectively)	122,218	135,346
Securities held-to-maturity, at amortized cost (fair value of $30,665 and $33,085, respectively)	36,232	37,479
Equity investments	2,019	2,086
Mortgage loans held for sale	23,144	22,243
Loans, net of fees and costs	1,885,629	1,743,682
Allowance for credit losses	(19,683)	(18,828)
Loans and other finance receivables, net of the allowance for credit losses	1,865,946	1,724,854
Restricted investment in bank stock	8,309	6,931
Bank premises and equipment, net	13,310	13,349
Bank owned life insurance	28,641	28,055
Accrued interest receivable	8,984	7,363
Other real estate owned	1,703	1,703
Deferred income taxes	4,993	3,936
Servicing assets	11,835	12,346
Goodwill	899	899
Intangible assets	3,022	3,175
Other assets	39,957	24,072
Total assets	2,230,971	2,062,228
Deposits:
Non-interest bearing	244,668	301,727
Interest bearing	1,563,977	1,410,752
Total deposits	1,808,645	1,712,479
Borrowings	177,959	122,082
Subordinated debentures	50,079	40,346
Accrued interest payable	7,814	2,389
Other liabilities	31,360	31,652
Total liabilities	2,075,857	1,908,948
Stockholders’ equity:
Common stock, $1 par value per share. 25,000,000 shares authorized; 13,180,934 and 13,156,308 shares issued and 11,177,751 and 11,465,572 shares outstanding, respectively	13,181	13,156
Surplus	79,731	79,072
Treasury stock, 2,003,183 and 1,690,736 shares, respectively, at cost	(26,079)	(21,821)
Unearned common stock held by employee stock ownership plan	(1,403)	(1,403)
Retained earnings	102,043	95,815
Accumulated other comprehensive loss	(12,359)	(11,539)
Total stockholders’ equity	155,114	153,280
Total liabilities and stockholders’ equity	$ 2,230,971	$ 2,062,228

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Securities available-for-sale, amortized cost	$ 138,014	$ 148,976
Securities, held-to-maturity, fair value	$ 30,665	$ 33,085
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, authorized (in shares)	25,000,000	25,000,000
Common stock, issued (in shares)	13,180,934	13,156,308
Common stock, outstanding (in shares)	11,177,751	11,465,572
Treasury stock held (in shares)	2,003,183	1,690,736

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Interest income:
Loans and other finance receivables, including fees	$ 33,980	$ 21,848	$ 95,612	$ 58,187
Securities - taxable	901	648	2,853	1,599
Securities - tax-exempt	333	369	1,038	1,015
Cash and cash equivalents	245	93	741	157
Total interest income	35,459	22,958	100,244	60,958
Interest expense:
Deposits	15,543	4,075	41,013	7,182
Borrowings	2,692	857	7,230	2,166
Total interest expense	18,235	4,932	48,243	9,348
Net interest income	17,224	18,026	52,001	51,610
Provision (recovery of provision) for credit losses	82	526	2,186	1,743
Net interest income after provision for credit losses	17,142	17,500	49,815	49,867
Non-interest income:
Mortgage banking income	$ 4,819	$ 7,329	$ 13,143	$ 21,367
Type of Revenue, Extensible List	Investment Advice [Member]	Investment Advice [Member]	Investment Advice [Member]	Investment Advice [Member]
Revenue from contract with customer	$ 1,258	$ 1,114	$ 3,689	$ 3,672
SBA loan income	982	989	3,463	3,946
Earnings on investment in life insurance	201	138	585	413
Net change in the fair value of derivative instruments	103	127	217	(713)
Net change in the fair value of loans held-for-sale	111	(237)	(88)	(1,094)
Net change in the fair value of loans held-for-investment	(570)	(886)	(673)	(2,499)
Net gain on hedging activity	82	399	81	4,941
Net loss on sale of investment securities available-for-sale	(3)	0	(58)	0
Other	1,103	1,251	3,489	3,695
Total non-interest income	8,086	10,224	23,848	33,728
Non-interest expense:
Salaries and employee benefits	12,420	13,360	35,633	41,585
Occupancy and equipment	1,226	1,191	3,610	3,619
Professional fees	1,104	899	2,930	2,659
Advertising and promotion	848	1,165	2,799	3,340
Data processing and software	1,652	1,442	4,764	3,939
Other	2,768	2,204	7,686	6,258
Total non-interest expense	20,018	20,261	57,422	61,400
Income before income taxes	5,210	7,463	16,241	22,195
Income tax expense	1,205	1,665	3,568	4,927
Net income	$ 4,005	$ 5,798	$ 12,673	$ 17,268
Basic earnings per common share (in USD per share)	$ 0.36	$ 0.49	$ 1.14	$ 1.45
Diluted earnings per common share (in USD per share)	$ 0.35	$ 0.48	$ 1.11	$ 1.40
Basic weighted average shares outstanding (in shares)	11,058	11,736	11,129	11,928
Diluted weighted average shares outstanding (in shares)	11,363	12,118	11,449	12,344

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income:	$ 4,005	$ 5,798	$ 12,673	$ 17,268
Net change in unrealized gains (losses) on investment securities available for sale:
Change in fair value of investment securities, net of tax of $(575), $(1,129), $(489), and $(3,694), respectively	(2,059)	(3,910)	(1,757)	(12,760)
Reclassification adjustment for net losses (gains) realized in net income, net of tax effect of $1, $0, $13, and $(1), respectively	2	0	45	(9)
Reclassification adjustment for investment securities transferred to held-to-maturity, net of tax effect of $7, $8, $19, and $(293), respectively	22	37	67	(962)
Unrealized investment losses, net of tax effect of $(566), $(1,121), $(457), and $(3,989), respectively	(2,035)	(3,873)	(1,645)	(13,731)
Net change in unrealized gains (losses) on interest rate swaps used in cash flow hedges, net of tax effect of $(140), $0, $(233), and $0, respectively	497	0	825	0
Total other comprehensive loss	(1,538)	(3,873)	(820)	(13,731)
Comprehensive income	$ 2,467	$ 1,925	$ 11,853	$ 3,537

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Tax expense (benefit) on unrealized gains arising during the period	$ (575)	$ (1,129)	$ (489)	$ (3,694)
Tax expense (benefit) on reclassification adjustment for net gains on sales realized in net income	1	0	13	(1)
Tax expense (benefit) on reclassification adjustment for transfer to held-to-maturity	(7)	(8)	(19)	293
Tax expense (benefit) on unrealized investment gains (losses)	(566)	(1,121)	(457)	(3,989)
Tax expense (benefit) on unrealized gains (losses) on interest rate swaps used in cash flow hedges	$ (140)	$ 0	$ (233)	$ 0

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands		Total	Cumulative Effect, Period of Adoption, Adjustment	[1]	Common Stock	Surplus	Treasury Stock	Unearned ESOP	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	[1]	AOCI
Balance beginning of the period at Dec. 31, 2021		$ 165,360			$ 13,070	$ 77,128	$ (8,860)	$ (1,602)	$ 84,916			$ 708
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		17,268							17,268
Other comprehensive loss		(13,731)										(13,731)
Dividends declared		(9,779)							(9,779)
Net purchase of treasury stock through publicly announced plans		(9,173)					(9,173)
Common stock issued through share-based awards and exercises		485			31	454
Stock based compensation expense		731				731
Balance ending of the period at Sep. 30, 2022		151,161			13,101	78,313	(18,033)	(1,602)	92,405			(13,023)
Balance beginning of the period at Dec. 31, 2021		$ 165,360			13,070	77,128	(8,860)	(1,602)	84,916			708
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]	[1]	Accounting Standards Update 2016-13 [Member]
Balance ending of the period at Dec. 31, 2022		$ 153,280	$ (2,228)		13,156	79,072	(21,821)	(1,403)	95,815	$ (2,228)		(11,539)
Balance beginning of the period at Jun. 30, 2022		156,087			13,096	77,824	(11,896)	(1,602)	87,815			(9,150)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		5,798							5,798
Other comprehensive loss		(3,873)										(3,873)
Dividends declared		(1,208)							(1,208)
Net purchase of treasury stock through publicly announced plans		(6,137)					(6,137)
Common stock issued through share-based awards and exercises		117			5	112
Stock based compensation expense		377				377
Balance ending of the period at Sep. 30, 2022		151,161			13,101	78,313	(18,033)	(1,602)	92,405			(13,023)
Balance beginning of the period at Dec. 31, 2022		153,280	$ (2,228)		13,156	79,072	(21,821)	(1,403)	95,815	$ (2,228)		(11,539)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		12,673							12,673
Other comprehensive loss		(820)										(820)
Dividends declared		(4,217)							(4,217)
Net purchase of treasury stock through publicly announced plans		(4,258)					(4,258)
Common stock issued through share-based awards and exercises		169			25	144
Stock based compensation expense		515				515
Balance ending of the period at Sep. 30, 2023		155,114			13,181	79,731	(26,079)	(1,403)	102,043			(12,359)
Balance beginning of the period at Jun. 30, 2023		153,962			13,181	79,650	(26,079)	(1,403)	99,434			(10,821)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		4,005							4,005
Other comprehensive loss		(1,538)										(1,538)
Dividends declared		(1,396)							(1,396)
Stock based compensation expense		81				81
Balance ending of the period at Sep. 30, 2023		$ 155,114			$ 13,181	$ 79,731	$ (26,079)	$ (1,403)	$ 102,043			$ (12,359)
[1]See Note 1, "Summary of Significant Accounting Policies - Pronouncements Adopted in 2023" for additional information.

CONSOLIDATED STATEMENTS OF ST_2

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Stockholders' Equity [Abstract]
Dividends declared (in dollars per share)	$ 0.125	$ 0.10	$ 0.375	$ 0.80
Treasury stock (in shares)		394,838	127,849	589,608

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Statement of Cash Flows [Abstract]
Net income	$ 12,673	$ 17,268
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Loss on sale of investment securities	58	0
Net amortization of investment premiums and discounts and change in fair value of equity securities	1,225	668
Depreciation and amortization (accretion), net	289	(1,343)
Provision for credit losses	2,186	1,743
Amortization of issuance costs on subordinated debt	56	89
Stock based compensation	515	731
Net change in fair value of derivative instruments	(217)	713
Net change in fair value of loans held for sale	88	1,094
Net change in fair value of loans held for investment	673	2,499
Amortization and net impairment of servicing rights	1,618	1,753
SBA loan income	(3,463)	(3,946)
Proceeds from sale of loans	515,573	863,056
Loans originated for sale	(504,880)	(794,541)
Mortgage banking income	(13,143)	(21,367)
Increase in accrued interest receivable	(1,621)	(999)
Increase in other assets	(4,874)	(1,675)
Earnings from investment in bank owned life insurance	(585)	(413)
(Increase) decrease in deferred income tax	170	(219)
Increase in accrued interest payable	5,425	1,123
Decrease in other liabilities	(778)	(2,579)
Net cash provided by operating activities	10,988	63,655
Activity in available-for-sale securities:
Maturities, repayments and calls	7,301	8,662
Proceeds from sale of investment securities	13,514	0
Purchases	(12,949)	(22,176)
Activity in held-to-maturity securities:
Maturities, repayments and calls	1,020	540
Purchases	0	(5,500)
Increase in restricted stock	(1,378)	(100)
Net increase in loans	(149,462)	(225,967)
Purchases of premises and equipment	(1,080)	(2,020)
Net cash used in investing activities	(143,034)	(246,561)
Cash flows from financing activities:
Net increase in deposits	96,166	227,140
Increase (decrease) in short-term borrowings	37,201	(17,886)
Increase in long-term debt	18,676	0
Repayment of subordinated debt	(54)	0
Proceeds from issuance of subordinated debt	9,740	0
Issuance costs on subordinated debt	(9)	0
Net purchase of treasury stock	(4,258)	(9,173)
Dividends paid	(4,217)	(9,779)
Share based awards and exercises	169	485
Net cash provided by financing activities	153,414	190,787
Net change in cash and cash equivalents	21,368	7,881
Cash and cash equivalents at beginning of period	38,391	23,480
Cash and cash equivalents at end of period	59,759	31,361
Supplemental disclosure of cash flow information:
Interest	42,818	8,225
Income taxes	1,839	5,365
Supplemental disclosure of cash flow information:
Transfers from loans held for sale to loans held for investment	351	2,955
Net loans sold, not settled	12,820	0
Transfer of securities from AFS to HTM	$ 0	$ 23,655

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The Corporation’s unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial position and the results of operations for the interim periods presented have been included. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Amounts subject to significant estimates are items such as the allowance for credit losses, lending related commitments and the related unfunded commitment reserve, the fair value of financial instruments, other-than-temporary impairments of investment securities, and the valuations of goodwill, intangible assets, and servicing assets. These unaudited consolidated financial statements should be read in conjunction with the Corporation’s filings with the SEC (including our Annual Report on Form 10-K for the year ended December 31, 2022), subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K that update or provide information in addition to the information included in Form 10-K and Form 10-Q filings, if any. Certain prior period amounts have been reclassified to conform with current period presentation. Reclassifications had no effect on net income or stockholders’ equity. Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results for the year ending December 31, 2023 or for any other period. Stock Split On February 28, 2023, the Corporation approved and declared a two-for-one stock split in the form of a stock dividend, paid March 20, 2023, to shareholders of record as of March 14, 2023. Under the terms of the stock split, the Corporation’s shareholders received a dividend of one share for every share held on the record date. The dividend was paid in authorized but unissued shares of common stock of the Corporation. The par value of the Corporation's stock was not affected by the split and remained at $1.00 per share. All share and per share amounts reported in the consolidated financial statements have been adjusted to reflect the two-for-one stock split. Loans Loans held for investment are recorded at amortized cost, net of ACL. Amortized cost is the amount at which a financial asset is originated or acquired, adjusted for the amortization of premium and discount, net deferred fees or costs, collection of cash, and write-offs. Interest income on loans is recognized using the level yield method. Loan origination fees, commitment fees and direct loan origination costs are deferred and recognized over the life of the related loans using a level yield method over the period to maturity. Allowance for Credit Losses - Loans and Leases On January 1, 2023, the Corporation adopted ASU 2016-13, Financial Instruments-Credit Losses ("Topic 326"), which replaced the incurred loss impairment model with an expected loss methodology that is referred to as the CECL methodology. The Corporation now establishes an ACL in accordance with Topic 326. The ACL includes quantitative and qualitative factors that comprise management's current estimate of expected credit losses, including portfolio mix and segmentation, modeling methodology, historical loss experience, relevant available information from internal and external sources relating to reasonable and supportable forecasts about future economic conditions, prepayment speeds, and qualitative adjustment factors. The Corporation's portfolio segments, established based on similar risk characteristics and loss behaviors, are: • Commercial mortgage, commercial and industrial, construction, SBA loans, and commercial small business leases (commercial loans), and • Residential, equity secured lines and loans, and installment loans (retail loans). Expected credit losses are estimated over the contractual term, adjusted for expected prepayments and recoveries. The contractual term excludes any extensions, renewals and modifications unless the Corporation has reasonable expectations at the reporting date that it will result in a modification, or they are not unconditionally cancellable. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The allowance includes two primary components: (i) an allowance established on loans which share similar risk characteristics collectively evaluated for credit losses (collective basis) and (ii) an allowance established on loans which do not share similar risk characteristics with any loan segment and are individually evaluated for credit losses (individual basis). Loans that share similar risk characteristics are collectively reviewed for credit loss and are evaluated based on historical loss experience, adjusted for current economic conditions and future economic forecasts. Estimated losses are determined differently for commercial and consumer loans, and each portfolio segment is further segmented by internally assessed risk ratings. Management uses a third-party economic forecast to modify the calculated historical loss rates of the portfolio segments. The Corporation's economic forecast extends out 4 quarters (the forecast period) and reverts to the historical loss rates on a straight-line basis over 1 quarter (the reversion period) as we believe this to be reasonable and supportable in the current environment. The economic forecast and reversion periods will be evaluated periodically by management and updated as appropriate. The historical loss rates for commercial loans are estimated by determining the PD and expected LGD. The PD is calculated based on the historical rate of migration to an event of credit loss during the look-back period. The historical loss rates for retail loans is calculated based solely on average net loss rates over the same look-back period. The Corporation's current look-back period is 32 quarters which helps to ensure that historical loss rates are adequately considering losses over a full economic cycle. Loans that do not share similar risk characteristics with any loan segments are evaluated on an individual basis. These loans, which may include borrowers experiencing financial difficulties, are not included in the collective basis evaluation. When it is probable that collection of all principal and interest due according to their contractual terms is not likely, which is assessed based on the credit characteristics of the loan and/or payment status, these loans are individually reviewed and measured for potential credit loss. The amount of the potential credit loss is measured using one of three methods: (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the fair value of collateral, if the loan is collateral dependent; or (iii) the loan’s observable market price. If the measured fair value of the loan is less than the amortized cost basis of the loan, an allowance for credit loss is recorded. For collateral dependent loans, the expected credit losses at the individual asset level is the difference between the collateral's fair value (less cost to sell) and the amortized cost. Qualitative adjustment factors consider various internal and external conditions which are allocated among loan segments and take into consideration: • Current underwriting policies, staff and portfolio concentrations, • Risk rating accuracy, credit and administration, • Internal risk emergence (including internal trends of delinquency, portfolio growth, and collateral value), and • , Competitive environment, as it could impact loan structure and underwriting. These factors are based on their relative standing compared to the period in which historical losses are used in quantitative reserve estimates and current directional trends, and reasonable and supportable forecasts. Qualitative factors in the model can add to or subtract from quantitative reserves. Loan officers and risk managers meet at least quarterly to discuss and review the conditions and risks associated with individual problem loans. In addition, various regulatory agencies periodically review our loan ratings and allowance for credit losses and the Bank’s internal loan review department performs loan reviews. Accrued interest receivable on loans is excluded from the estimate of credit losses and is included in Accrued interest receivable on the Consolidated Balance Sheets. For additional detail regarding the allowance for credit losses and the provision for credit losses, see Note 5. Past Due and Nonaccrual Loans Past due loans and leases are defined as loans contractually past due 30 - 89 days as to principal or interest payments but which remain in accrual status, or loans delinquent 90 days or more but are considered well secured and in the process of collection. Nonaccruing loans and leases are those on which the accrual of interest has ceased. Loans are placed on nonaccrual status immediately if, in the opinion of management, collection is doubtful, or when principal or interest is past due 90 days or more and the loan is not well secured and in the process of collection. Interest accrued but not collected at the date a loan is placed on nonaccrual status is reversed and charged against interest income. In addition, the amortization of net deferred loan fees is suspended when a loan is placed on nonaccrual status. Subsequent cash receipts are applied either to the outstanding principal balance or recorded as interest income, depending on management’s assessment of the ultimate collectability of principal and interest. Loans are returned to accrual status when it is determined that the borrower has the ability to make all principal and interest payments in accordance with the terms of the loan (i.e. a consistent repayment record, generally six consecutive payments, has been demonstrated). Unless loans are well-secured and collection is imminent, for loans greater than 90 days past due their respective reserves are generally charged off once the loss has been confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. Securities Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each balance sheet date. Securities classified as available-for-sale are those securities that the Corporation intends to hold for an indefinite period of time but not necessarily to maturity. Securities available-for-sale are carried at fair value. Any decision to sell a security classified as available-for-sale would be based on various factors, including significant movement in interest rates, changes in maturity mix of the Corporation’s assets and liabilities, liquidity needs, regulatory capital considerations and other similar factors. Unrealized gains and losses are reported as increases or decreases in other comprehensive income. Gains or losses on disposition are based on the net proceeds and cost of the securities sold, adjusted for the amortization of premiums and accretion of discounts, using the specific identification method. Securities classified as held to maturity are those debt securities the Corporation has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs or changes in general economic conditions. These securities are carried at cost adjusted for the amortization of premium and accretion of discount, computed on a level yield basis. Investments in equity securities are recorded in accordance with ASC 321-10, Investments - Equity Securities. Equity securities are carried at fair value, with changes in fair value reported in net income. At September 30, 2023 and December 31, 2022, investments in equity securities consisted of an investment in mutual funds with a fair value of $2.0 million, and $2.1 million, respectively. The Corporation’s accounting policy specifies that (a) if the Corporation does not have the intent to sell a debt security prior to recovery and (b) it is more likely than not that it will not have to sell the debt security prior to recovery, the security would not be considered other-than-temporarily impaired, unless there is a credit loss. When the Corporation does not intend to sell the security, and it is more likely than not, the Corporation will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. The Corporation did not recognize any other-than-temporary impairment charges during the three and nine months ended September 30, 2023 and 2022. Allowance for Credit Losses - Held-to-Maturity Debt Securities We follow Accounting Standards Codification (ASC) 326-20, Financial Instruments - Credit Loss - Measured at Amortized Cost, to measure expected credit losses on held-to-maturity debt securities on a collective basis by security investment grade. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Corporation classifies the held-to-maturity debt securities into the following major security types: state and municipal securities. These securities are highly rated with a history of no credit losses, and are assigned ratings based on the most recent data from ratings agencies depending on the availability of data for the security. Credit ratings of held-to-maturity debt securities, which are a significant input in calculating the expected credit loss, are reviewed on a quarterly basis. Accrued interest receivable on held-to-maturity debt securities is excluded from the estimate of credit losses and is included in Accrued interest receivable on the Consolidated Balance Sheets. Allowance for Credit Losses - Available-for-Sale Debt Securities We follow ASC 326-30, Financial Instruments - Cre dit Loss - Available-for-Sale Debt Securities, which provides guidance related to the recognition of and expanded disclosure requirements for expected credit losses on available-for-sale debt securities. For available-for-sale debt securities in an unrealized loss position, the Corporation first evaluates whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either criteria is met, the security's amortized cost basis is reduced to fair value and recognized as a reduction to Noninterest income in the Consolidated Statements of Income. For debt securities available-for-sale which the Corporation does not intend to sell, or it is not likely the security would be required to be sold before recovery, we evaluate whether a decline in fair value has resulted from credit losses or other adverse factors, such as a change in the security's credit rating. In assessing whether a credit loss exists, the Corporation compares the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance is recorded, limited to the fair value of the security. Management performs this analysis on a quarterly basis to review the conditions and risks associated with the individual securities. Credit losses on an impaired security shall continue to be measured using the present value of expected future cash flows. Any impairment not recorded through an allowance for credit loss is included in other comprehensive income (loss), net of the tax effect. We are required to use our judgment in determining impairment in certain circumstances. For additional detail regarding debt securities, see Note 3. Unfunded Lending Commitments For unfunded lending commitments, the Corporation estimates expected credit losses over the contractual period in which the Corporation is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Corporation. The estimate includes consideration of the probability of default and utilization rate at default to calculate expected credit losses on commitments expected to be funded over its estimated life of one year, based on historical losses, and qualitative adjustment factors. The allowance for credit losses for off-balance sheet exposures is included in Other liabilities on the Consolidated Balance Sheets and the provision for credit losses for off-balance sheet exposure is included in the provision for credit losses on the Consolidated Statements of Income for the periods ended September 30, 2023, and in other non-interest expense for periods prior to the adoption of ASU-2016-13 on January 1, 2023. The allowance for credit losses for off-balance sheet exposures was $1.0 million and $173 thousand as of September 30, 2023 and December 31, 2022, respectively. Pronouncements Adopted in 2023 FASB ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments” The Corporation adopted ASU 2016-13, as amended, on January 1, 2023, which replaced the incurred loss methodology with an expected loss methodology that is referred to as the CECL methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loans, net of fees and costs, securities HTM, unfunded lending commitments (including loan commitments on loans held for investment, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842. In addition, ASC 326 made changes to the accounting for securities AFS which now requires credit losses to be presented as an allowance rather than as an other-than-temporary impairment on securities AFS management does not intend to sell or believes that it is more likely than not they will be required to sell. We applied the modified retrospective method for all financial assets measured at amortized cost and securities AFS. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Corporation recorded a one-time decrease to retained earnings of $2.2 million on January 1, 2023 for the cumulative effect of adopting ASC 326, net of tax. The transition adjustment includes $1.2 million and $974 thousand post-tax impacts for loans, net of fees and costs and unfunded loan commitments, respectively, due to higher expected credit losses compared to the incurred loss methodology primarily driven by longer duration commercial and consumer real estate loans. FASB ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” Issued in April 2019, ASU 2019-04 clarifies certain aspects of accounting for credit losses, hedging activities, and financial instruments (addressed by ASUs 2016-13, 2017-12, and 2016-01, respectively). The amendments to estimating expected credit losses (ASU 2016-13), in particular, how a company considers recoveries and extension options when estimating expected credit losses, are the most relevant to the Corporation. The ASU clarifies that (1) the estimate of expected credit losses should include expected recoveries of financial assets, including recoveries of amounts expected to be written off and those previously written off, and (2) that contractual extension or renewal options that are not unconditionally cancellable by the lender are considered when determining the contractual term over which expected credit losses are measured. The Corporation adopted ASU 2019-04 at the same time ASU 2016-13 was adopted. FASB ASU 2022-02, "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." In March 2022, the FASB issued ASU No. 2022-02, "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted CECL and enhance the disclosure requirements for modifications of receivables made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current period gross write-offs by year of origination for financing receivables and net investment in leases in the existing vintage disclosures. The Corporation adopted ASU 2022-02 at the same time ASU 2016-13 was adopted, as of January 1, 2023. The adoption of this ASU resulted in updated disclosures within our financial statements but otherwise did not have a material impact on the Corporation's financial statements. See Note 5. Pronouncements Not Yet Effective as of September 30, 2023: FASB ASU 2020-04 (Topic 848), “Reference Rate Reform (“ASC 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” Issued in March 2020, ASU 2020-04 contains optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The Corporation does not have a significant concentration of loans, derivative contracts, borrowings or other financial instruments with attributes that are either directly or indirectly dependent on LIBOR. The Corporation expects to adopt the LIBOR transition relief allowed under this standard. FASB ASU 2020-06, “Debt With Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” This ASU clarifies the accounting for certain financial instruments with characteristics of liabilities and equity. The amendments in this update reduce the number of accounting models for convertible debt instruments and convertible preferred stock by removing the cash conversion model and the beneficial conversion feature models. For public business entities that meet the definition of an SEC filer (excluding smaller reporting entities), the amendments are effective for fiscal years beginning after Dec. 15, 2021, and interim periods within. For all other entities, the amendments are effective for fiscal years beginning after Dec. 15, 2023, and interim periods within. Early adoption is permitted, but no earlier than for fiscal years beginning after Dec. 15, 2020. The Corporation does not expect this to have a material impact on our consolidated financial statements. FASB ASU 2023-02, "Investments Equity Method and Joint Ventures (Topic 323) Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method" In March 2023, the FASB issued ASU 2023-02, Investments Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method to allow reporting entities to consistently account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits. If certain conditions are met,

Earnings per Common Share

Earnings per Common Share	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Earnings per Common Share	Earnings per Common Share Basic earnings per common share excludes dilution and is computed by dividing income available to common shareholders by the weighted-average common shares outstanding during the period reduced by unearned ESOP Plan shares and treasury shares. Diluted earnings per common share takes into account the potential dilution computed pursuant to the treasury stock method that could occur if stock options were exercised and converted into common stock and if restricted stock awards were vested, and SERP plan liabilities were satisfied with common shares. The effects of stock options are excluded from the computation of diluted earnings per share in periods in which the effect would be anti-dilutive. Three months ended Nine months ended (dollars in thousands, except per share data) 2023 2022 2023 2022 Numerator for earnings per share: Net income available to common stockholders $ 4,005 $ 5,798 $ 12,673 $ 17,268 Denominators for earnings per share: Weighted average shares outstanding 11,228 11,936 11,307 12,076 Average unearned ESOP shares (170) (200) (178) (148) Basic weighted averages shares outstanding 11,058 11,736 11,129 11,928 Dilutive effects of assumed exercises of stock options 119 232 149 274 Dilutive effects of SERP shares 186 150 171 142 Diluted weighted averages shares outstanding 11,363 12,118 11,449 12,344 Basic earnings per share $ 0.36 $ 0.49 $ 1.14 $ 1.45 Diluted earnings per share $ 0.35 $ 0.48 $ 1.11 $ 1.40 Antidilutive shares excluded from computation of average dilutive earnings per share 490 474 490 472

Securities

Securities	9 Months Ended
	Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Securities	Securities The following tables presents the amortized cost, allowance for credit losses, and fair value of securities at the dates indicated: September 30, 2023 (dollars in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Allowance for Credit Losses Fair value # of Securities in unrealized loss position Securities available-for-sale: U.S. asset backed securities $ 11,580 $ 98 $ (202) $ — $ 11,476 9 U.S. government agency MBS 11,744 — (610) — 11,134 13 U.S. government agency CMO 22,226 — (2,854) — 19,372 30 State and municipal securities 40,275 — (6,890) — 33,385 31 U.S. Treasuries 32,982 — (3,453) — 29,529 25 Non-U.S. government agency CMO 11,007 1 (788) — 10,220 13 Corporate bonds 8,200 — (1,098) — 7,102 13 Total securities available-for-sale $ 138,014 $ 99 $ (15,895) $ — $ 122,218 134 Securities held to maturity: State and municipal securities $ 36,232 $ — $ (5,567) $ — $ 30,665 24 Total securities held-to-maturity $ 36,232 $ — $ (5,567) $ — $ 30,665 24 December 31, 2022 (dollars in thousands) Amortized Gross Gross Fair # of Securities Securities available-for-sale: U.S. asset backed securities $ 15,581 $ 14 $ (314) $ 15,281 12 U.S. government agency MBS 12,272 5 (538) 11,739 12 U.S. government agency CMO 25,520 40 (2,242) 23,318 29 State and municipal securities 44,700 — (5,862) 38,838 34 U.S. Treasuries 32,980 — (3,457) 29,523 25 Non-U.S. government agency CMO 9,722 — (633) 9,089 11 Corporate bonds 8,201 — (643) 7,558 12 Total securities available-for-sale $ 148,976 $ 59 $ (13,689) $ 135,346 135 Securities held-to-maturity: State and municipal securities $ 37,479 $ — $ (4,394) $ 33,085 25 Although the Corporation’s investment portfolio overall is in a net unrealized loss position at September 30, 2023, the temporary impairment in the above noted securities is primarily the result of changes in market interest rates subsequent to purchase and it is more likely than not that the Corporation will not be required to sell these securities prior to recovery to satisfy liquidity needs, and therefore, no securities are deemed to be other-than-temporarily impaired. ACL on Securities AFS and HTM We use credit ratings quarterly and the most recent financial information of securities' issuers annually to help evaluate the credit quality of our securities AFS and HTM portfolios on a quarterly basis. The securities portfolio consists primarily of U.S. government treasuries and U.S. government agency asset backed securities which have no probability of default. The remaining portfolio consists of highly rated municipal bonds, non-agency CMO, and corporate bonds that have a low probability of default. For the three and nine months ended September 30, 2023, we had no significant ACL or provision expense and no charge-offs or recoveries on AFS or HTM securities. The following table shows the Corporation’s investment gross unrealized losses and fair value aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at the dates indicated: September 30, 2023 Less than 12 Months 12 Months or more Total (dollars in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Securities available-for-sale: U.S. asset backed securities $ 1,345 $ — $ 6,489 $ (202) $ 7,834 $ (202) U.S. government agency mortgage-backed securities 3,092 (32) 8,042 (578) 11,134 (610) U.S. government agency collateralized mortgage obligations 2,728 (76) 16,644 (2,778) 19,372 (2,854) State and municipal securities — — 33,385 (6,890) 33,385 (6,890) U.S. Treasuries — — 29,529 (3,453) 29,529 (3,453) Non-U.S. government agency collateralized mortgage obligations 3,229 (22) 6,400 (766) 9,629 (788) Corporate bonds 907 (93) 6,195 (1,005) 7,102 (1,098) Total securities available-for-sale $ 11,301 $ (223) $ 106,684 $ (15,672) $ 117,985 $ (15,895) Securities held-to-maturity: State and municipal securities $ 2,966 $ (155) $ 27,245 $ (5,412) $ 30,211 $ (5,567) Total securities held-to-maturity $ 2,966 $ (155) $ 27,245 $ (5,412) $ 30,211 $ (5,567) December 31, 2022 Less than 12 Months 12 Months or more Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Securities available-for-sale: U.S. asset backed securities $ 6,531 $ (80) $ 4,863 $ (234) $ 11,394 $ (314) U.S. government agency MBS 6,022 (230) 4,637 (308) 10,659 (538) U.S. government agency CMO 9,859 (821) 9,549 (1,421) 19,408 (2,242) State and municipal securities 7,487 (726) 31,351 (5,136) 38,838 (5,862) U.S. Treasuries 1,902 (97) 27,622 (3,360) 29,524 (3,457) Non-U.S. government agency CMO 8,423 (464) 666 (169) 9,089 (633) Corporate bonds 5,019 (431) 1,538 (212) 6,557 (643) Total securities available-for-sale $ 45,243 $ (2,849) $ 80,226 $ (10,840) $ 125,469 $ (13,689) Securities held-to-maturity: State and municipal securities $ 10,130 $ (364) $ 22,543 $ (4,030) $ 32,673 $ (4,394) Total securities held-to-maturity $ 10,130 $ (364) $ 22,543 $ (4,030) $ 32,673 $ (4,394) The amortized cost and carrying value of securities are shown below by contractual maturities at the dates indicated. Actual maturities may differ from contractual maturities as issuers may have the right to call or repay obligations with or without call or prepayment penalties. September 30, 2023 December 31, 2022 Available-for-sale Held-to-maturity Available-for-sale Held-to-maturity (dollars in thousands) Amortized cost Fair value Amortized cost Fair value Amortized cost Fair value Amortized cost Fair value Due in one year or less $ — $ — $ — $ — $ — $ — $ — $ — Due after one year through five years 30,793 27,666 4,226 4,147 18,865 17,289 4,275 4,238 Due after five years through ten years 19,161 17,047 2,901 2,326 28,647 25,459 2,998 2,683 Due after ten years 43,083 36,780 29,105 24,192 53,950 48,453 30,206 26,164 Subtotal 93,037 81,493 36,232 30,665 101,462 91,201 37,479 33,085 Mortgage-related securities 44,977 40,725 — — 47,514 44,145 — — Total $ 138,014 $ 122,218 $ 36,232 $ 30,665 $ 148,976 $ 135,346 $ 37,479 $ 33,085 The following table presents the gross loss on sale of investment securities available for sale on the dates indicated: Three months ended Nine months ended (dollars in thousands) 2023 2022 2023 2022 Proceeds from sale of investment securities $ 155 $ — $ 13,514 $ — Gross gain on sale of available for sale investments — — — — Gross loss on sale of available for sale investments 3 — 58 — Pledged Securities As of September 30, 2023 and December 31, 2022, securities having a fair value of $51.8 million and $78.4 million, respectively, were specifically pledged as collateral for public funds, the FRB discount window program, FHLB borrowings and other purposes. The FHLB has a blanket lien on non-pledged, mortgage-related loans and securities as part of the Corporation’s borrowing agreement with the FHLB.

Loans and Other Finance Receiva

Loans and Other Finance Receivables	9 Months Ended
	Sep. 30, 2023
Receivables [Abstract]
Loans and Other Finance Receivables	Loans and Other Finance Receivables The following table presents loans and other finance receivables detailed by category at the dates indicated: (dollars in thousands) September 30, December 31, Real estate loans: Commercial mortgage $ 696,124 $ 565,400 Home equity lines and loans 73,844 59,399 Residential mortgage 256,343 221,837 Construction 276,590 271,955 Total real estate loans 1,302,901 1,118,591 Commercial and industrial 299,861 341,378 Small business loans 141,265 136,155 Consumer 434 488 Leases, net 138,963 138,986 Total loans $ 1,883,424 $ 1,735,598 Balances included in loans, net of fees and costs: Residential mortgage real estate loans accounted under fair value option, at fair value $ 13,231 $ 14,502 Residential mortgage real estate loans accounted under fair value option, at amortized cost 16,508 16,930 Unearned lease income included in leases, net (22,385) (25,715) Unamortized net deferred loan origination costs $ 2,205 $ 8,084 Fair Value Option for Residential Mortgage Real Estate Loans Residential mortgage real estate loans that were originated by the Corporation and intended for sale in the secondary market to permanent investors, but were either repurchased or unsalable due to defect, and that the Corporation has the ability and intent to hold for the foreseeable future or until maturity or payoff are carried at fair value pursuant to the Corporation's election of the fair value option for these loans. The remaining loans, net of fees and costs are stated at their outstanding unpaid principal balances, net of deferred fees or costs, since the original intent for these loans was to hold them until payoff or maturity. Nonaccrual and Past Due Loans The following tables present an aging of the Corporation’s loans at the dates indicated: September 30, 2023 (dollars in thousands) 30-89 days past due 90+ days past due and still accruing Total past due Current Total Accruing Loans and leases Nonaccrual loans and leases Total loans portfolio and leases % Delinquent Commercial mortgage $ 574 $ — $ 574 $ 695,550 $ 696,124 $ — $ 696,124 0.08 % Home equity lines and loans 216 — 216 72,699 72,915 929 73,844 1.55 Residential mortgage (1) 5,525 — 5,525 247,721 253,246 3,097 256,343 3.36 Construction — — — 275,384 275,384 1,206 276,590 0.44 Commercial and industrial — — — 284,286 284,286 15,575 299,861 5.19 Small business loans 1,842 — 1,842 132,186 134,028 7,237 141,265 6.43 Consumer — — — 434 434 — 434 — Leases, net 2,346 — 2,346 135,550 137,896 1,067 138,963 2.46 % Total $ 10,503 $ — $ 10,503 $ 1,843,810 $ 1,854,313 $ 29,111 $ 1,883,424 2.10 % (1) Includes $13,231 of loans at fair value of which $12,108 are current, $376 are 30-89 days past due and $747 are nonaccrual. December 31, 2022 (dollars in thousands) 30-89 days past due 90+ days past due and still accruing Total past due Current Total Accruing Loans and leases Nonaccrual loans and leases Total loans portfolio and leases % Delinquent Commercial mortgage $ — $ — $ — $ 565,260 $ 565,260 $ 140 $ 565,400 0.02 % Home equity lines and loans 146 — 146 58,156 58,302 1,097 59,399 2.09 Residential mortgage (1) 4,262 — 4,262 215,490 219,752 2,085 221,837 2.86 Construction 1,206 — 1,206 270,749 271,955 — 271,955 0.44 Commercial and industrial 101 — 101 328,730 328,831 12,547 341,378 3.70 Small business loans 939 — 939 130,751 131,690 4,465 136,155 3.97 Consumer — — — 488 488 — 488 — Leases, net 1,173 — 1,173 136,911 138,084 902 138,986 1.49 % Total $ 7,827 $ — $ 7,827 $ 1,706,535 $ 1,714,362 $ 21,236 $ 1,735,598 1.67 % (1) Includes $14,502 of loans at fair value of which $13,760 are current, $184 are 30-89 days past due and $558 are nonaccrual. Foreclosed and Repossessed Assets At September 30, 2023, there were 4 consumer mortgage loans secured by residential real estate properties (included in loans, net of fees and costs on the Consolidated Balance Sheets) totaling $937 thousand for which formal foreclosure proceedings were in process. Risks and Uncertainties We have no particular credit concentration. Our commercial loans have been proactively managed in an effort to achieve a balanced portfolio with no unusual exposure to one industry. Additionally, most of our lending activity occurs within our primary market areas which are concentrated in southeastern Pennsylvania, Delaware, and Maryland as well as other contiguous markets and represents a geographic concentration. Additionally, our loan portfolio is concentrated in commercial loans. Commercial loans are generally viewed as having more inherent risk of default than residential real estate loans or other consumer loans. Also, the commercial loan balance per borrower is typically larger than that for residential real estate loans and consumer loans, implying higher potential losses on an individual loan basis. Past Due and Nonaccrual Status The following table presents the amortized costs basis of loans and leases on nonaccrual status and loans 90 days or more past due and still accruing, net of fees and costs as of September 30, 2023. As of this date here were no loans 90 days or more past due and still accruing. September 30, 2023 (dollars in thousands) Nonaccrual Without ACL Nonaccrual With ACL Total Nonaccrual Home equity lines and loans $ 929 $ — $ 929 Residential mortgage 3,097 — 3,097 Construction 1,206 — 1,206 Commercial and industrial 3,346 12,229 15,575 Small business loans 3,457 3,780 7,237 Leases, net 1,067 — 1,067 Total $ 13,102 $ 16,009 $ 29,111 Collateral-dependent Loans The following table presents the amortized cost basis of non-accruing collateral-dependent loans by class or loans as of September 30, 2023 under the current expected credit loss model: September 30, 2023 (dollars in thousands) Real Estate Equipment and Other Total Home equity lines and loans $ 929 $ — $ 929 Residential mortgage 3,097 — 3,097 Construction 1,206 — 1,206 Commercial and industrial 1,893 13,682 15,575 Small business loans 5,347 1,890 7,237 Leases, net — 1,067 1,067 Total $ 12,472 $ 16,639 $ 29,111

Allowance for Credit Losses

Allowance for Credit Losses	9 Months Ended
	Sep. 30, 2023
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]
Allowance for Credit Losses	Allowance for Credit Losses The ACL is maintained at a level considered adequate to provide for estimated expected credit losses within the loan portfolio over the contractual life of an instrument that considers our historical loss experience, current conditions and forecasts of future economic conditions as of the balance sheet date. Management’s periodic evaluation of the adequacy of the ACL is based on known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is subjective as it requires material estimates that may be susceptible to significant revisions as more information becomes available. Roll-Forward of ACL by Portfolio Segment The following tables provide the activity of our allowance for credit losses for the three and nine months ended September 30, 2023 under the CECL model in accordance with ASC 326 (as adopted on January 1, 2023): Three Months Ended September 30, 2023 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provision (recovery of provision) for credit losses Ending balance Commercial mortgage $ 3,249 $ — $ — $ 916 $ 4,165 Home equity lines and loans 790 2 153 945 Residential mortgage 1,047 — — 157 1,204 Construction 1,294 — — (453) 841 Commercial and industrial 2,241 (130) 1 267 2,379 Small business loans 6,868 (272) 1 (511) 6,086 Consumer — (1) 1 — — Leases 4,753 (606) 90 (174) 4,063 Total $ 20,242 $ (1,009) $ 95 $ 355 $ 19,683 Nine Months Ended September 30, 2023 (dollars in thousands) Beginning Balance, prior to adoption of ASU No. 2016-13 for CECL Adjustment to initially apply ASU No. 2016-13 for CECL Charge-offs Recoveries Provision (recovery of provision) for credit losses Ending balance Commercial mortgage $ 4,095 $ (526) $ — $ — $ 596 $ 4,165 Home equity lines and loans 188 439 (87) 5 400 945 Residential mortgage 948 17 — — 239 1,204 Construction 3,075 (1,763) — — (471) 841 Commercial and industrial 4,012 (1,023) (130) 57 (537) 2,379 Small business loans 4,909 1,110 (598) 1 664 6,086 Consumer 3 (3) (1) 3 (2) — Leases 1,598 3,345 (2,845) 242 1,723 4,063 Total $ 18,828 $ 1,596 $ (3,661) $ 308 $ 2,612 $ 19,683 The following tables provide the activity of the allowance for loan and lease losses for the three and nine months ended September 30, 2022 under the incurred loss model: Three Months Ended September 30, 2022 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provision (Reversal) Ending balance Commercial mortgage $ 4,327 $ — $ — $ (238) $ 4,089 Home equity lines and loans 240 (12) 34 (25) 237 Residential mortgage 489 — — 217 706 Construction 2,481 — — 378 2,859 Commercial and industrial 6,287 — 39 (657) 5,669 Small business loans 3,681 — — 319 4,000 Consumer 3 — 1 (1) 3 Leases 1,297 (419) — 533 1,411 Total $ 18,805 $ (431) $ 74 $ 526 $ 18,974 Nine Months Ended September 30, 2022 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provision (Reversal) Ending balance Commercial mortgage $ 4,950 $ — $ — $ (861) $ 4,089 Home equity lines and loans 224 (12) 42 (17) 237 Residential mortgage 283 — 2 421 706 Construction 2,042 — — 817 2,859 Commercial and industrial 6,533 — 58 (922) 5,669 Small business loans 3,737 — — 263 4,000 Consumer 3 — 3 (3) 3 Leases 986 (1,682) 62 2,045 1,411 Total $ 18,758 $ (1,694) $ 167 $ 1,743 $ 18,974 Reconciliation of Provision for Credit Losses The following table provides a reconciliation of the provision for credit losses on the consolidated statements of income between the funded and unfunded components at the dates indicated: Three Months Ended Nine Months Ended (dollars in thousands) 2023 2022 2023 2022 Provision for credit losses - funded $ 355 $ 526 $ 2,612 $ 1,743 Recovery of provision for credit losses - unfunded (273) — (426) — Total provision for credit losses $ 82 $ 526 $ 2,186 $ 1,743 Allowance Allocated by Portfolio Segment The following tables detail the allocation of the ACL and the carrying value for loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases at the dates indicated: September 30, 2023 Allowance for credit losses Carrying value of loans and leases (dollars in thousands) Individually evaluated Collectively evaluated Total Individually evaluated Collectively evaluated Total Commercial mortgage $ — $ 4,165 $ 4,165 $ — $ 696,124 $ 696,124 Home equity lines and loans — 945 945 929 72,915 73,844 Residential mortgage — 1,204 1,204 2,164 240,948 243,112 Construction — 841 841 1,206 275,384 276,590 Commercial and industrial 1,145 1,234 2,379 15,575 284,286 299,861 Small business loans 1,393 4,693 6,086 7,237 134,028 141,265 Consumer — — — — 434 434 Leases, net — 4,063 4,063 1,067 137,896 138,963 Total (1) $ 2,538 $ 17,145 $ 19,683 $ 28,178 $ 1,842,015 $ 1,870,193 ( 1) Excludes deferred fees and loans carried at fair value. The following table details the pre-CECL allocation of the allowance for loan and lease losses and the carrying value for loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment at the dates indicated: December 31, 2022 Allowance on loans and leases Carrying value of loans and leases (dollars in thousands) Individually evaluated Collectively evaluated Total Individually evaluated Collectively evaluated Total Commercial mortgage $ — $ 4,095 $ 4,095 $ 2,445 $ 562,955 $ 565,400 Home equity lines and loans — 188 188 1,097 58,302 59,399 Residential mortgage — 948 948 1,454 205,881 207,335 Construction — 3,075 3,075 1,206 270,749 271,955 Commercial and industrial 776 3,236 4,012 12,547 328,831 341,378 Small business loans 1,449 3,460 4,909 4,527 131,628 136,155 Consumer — 3 3 — 488 488 Leases, net — 1,598 1,598 902 138,084 138,986 Total (1) $ 2,225 $ 16,603 $ 18,828 $ 24,178 $ 1,696,918 $ 1,721,096 ( 1) Excludes deferred fees and loans carried at fair value. Credit Quality Indicators As part of the process of determining the ACL to the different segments of the loan and lease portfolio, Management considers certain credit quality indicators. For the commercial mortgage, construction and commercial and industrial loan segments, periodic reviews of the individual loans are performed by Management. The results of these reviews are reflected in the risk grade assigned to each loan. These internally assigned grades are as follows: • Pass – Loans considered to be satisfactory with no indications of deterioration. • Special mention – Loans classified as special mention have a potential weakness that deserves Management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. • Substandard – Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. • Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loan balances classified as doubtful have been reduced by partial charge-offs and are carried at their net realizable values. The following tables detail the carrying value of loans and leases by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses at the dates indicated: September 30, 2023 Revolving Loans Converted to Term Loans Revolving Loans Total Term Loans 2023 2022 2021 2020 2019 Prior Commercial mortgage Pass/Watch $ 82,314 $ 137,909 $ 161,963 $ 96,103 $ 51,149 $ 136,069 $ 511 $ 426 $ 666,444 Special Mention — 4,625 — — 9,291 10,060 667 — 24,643 Substandard 200 — 574 — 1,648 2,287 — 328 5,037 Total $ 82,514 $ 142,534 $ 162,537 $ 96,103 $ 62,088 $ 148,416 $ 1,178 $ 754 $ 696,124 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction Pass/Watch $ 53,495 $ 101,776 $ 29,115 $ 47,458 $ 4,548 $ 2,120 $ 123 $ 24,083 $ 262,718 Special Mention — — 1,084 — 511 8,934 — 2,137 12,666 Substandard — — — — — 1,206 — — 1,206 Total $ 53,495 $ 101,776 $ 30,199 $ 47,458 $ 5,059 $ 12,260 $ 123 $ 26,220 $ 276,590 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and industrial Pass/Watch $ 18,566 $ 35,631 $ 26,734 $ 8,891 $ 4,579 $ 37,658 $ — $ 126,466 $ 258,525 Special Mention 1,000 4,766 — — — 1,665 — 2,816 10,247 Substandard — — 2,906 — 300 9,730 — 18,153 31,089 Total $ 19,566 $ 40,397 $ 29,640 $ 8,891 $ 4,879 $ 49,053 $ — $ 147,435 $ 299,861 Current period gross charge-offs $ (73) $ (55) $ — $ (2) $ — $ — $ — $ — $ (130) Small business loans Pass/Watch $ 39,356 $ 19,977 $ 39,053 $ 13,148 $ 6,996 $ 1,018 $ — $ 13,102 $ 132,650 Special Mention — — — — — — — 100 100 Substandard — 673 5,038 1,914 890 — — — 8,515 Total $ 39,356 $ 20,650 $ 44,091 $ 15,062 $ 7,886 $ 1,018 $ — $ 13,202 $ 141,265 Current period gross charge-offs $ — $ — $ — $ (411) $ (187) $ — $ — $ — $ (598) Total by risk rating Pass/Watch $ 193,731 $ 295,293 $ 256,865 $ 165,600 $ 67,272 $ 176,865 $ 634 $ 164,077 $ 1,320,337 Special Mention 1,000 9,391 1,084 — 9,802 20,659 667 5,053 47,656 Substandard 200 673 8,518 1,914 2,838 13,223 — 18,481 45,847 Total $ 194,931 $ 305,357 $ 266,467 $ 167,514 $ 79,912 $ 210,747 $ 1,301 $ 187,611 $ 1,413,840 Total current period gross charge-offs $ (73) $ (55) $ — $ (413) $ (187) $ — $ — $ — $ (728) The Corporation had no loans with a risk rating of Doubtful included within recorded investment in loans and leases held for investment at September 30, 2023. In addition to credit quality indicators as shown in the above tables, allowance allocations for residential mortgages, consumer loans and leases are also applied based on their performance status at the dates indicated: September 30, 2023 Revolving Loans Total Term Loans 2023 2022 2021 2020 2019 Prior Home equity lines and loans Performing $ 52 $ 801 $ 318 $ 359 $ 2,289 $ 2,375 $ 66,721 $ 72,915 Nonperforming — — — — — — 929 929 Total $ 52 $ 801 $ 318 $ 359 $ 2,289 $ 2,375 $ 67,650 $ 73,844 Current period gross charge-offs $ — $ — $ — $ (54) $ — $ (33) $ — $ (87) Residential mortgage (1) Performing $ 42,601 $ 157,600 $ 21,967 $ 7,353 $ 461 $ 11,408 $ — $ 241,390 Nonperforming — — — — 1,722 — 1,722 Total $ 42,601 $ 157,600 $ 21,967 $ 7,353 $ 461 $ 13,130 $ — $ 243,112 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer Performing $ 41 $ 35 $ — $ — $ 34 $ 248 $ 76 $ 434 Nonperforming — — — — — — — — Total $ 41 $ 35 $ — $ — $ 34 $ 248 $ 76 $ 434 Current period gross charge-offs $ — $ (1) $ — $ — $ — $ — $ — $ (1) Leases, net Performing $ 25,583 $ 64,581 $ 35,930 $ 11,802 $ — $ — $ — $ 137,896 Nonperforming — 499 385 183 — — — 1,067 Total $ 25,583 $ 65,080 $ 36,315 $ 11,985 $ — $ — $ — $ 138,963 Current period gross charge-offs $ (3) $ (1,438) $ (1,268) $ (136) $ — $ — $ — $ (2,845) Total by Payment Performance Performing $ 68,277 $ 223,017 $ 58,215 $ 19,514 $ 2,784 $ 14,031 $ 66,797 $ 452,635 Nonperforming — 499 385 183 — 1,722 929 3,718 Total $ 68,277 $ 223,516 $ 58,600 $ 19,697 $ 2,784 $ 15,753 $ 67,726 $ 456,353 Total current period gross charge-offs $ (3) $ (1,439) $ (1,268) $ (190) $ — $ (33) $ — $ (2,933) (1) Excludes $14,403 of loans at fair value. Commercial and industrial loans classified as substandard totaled $31.1 million as of September 30, 2023, a decrease of $8.2 million, from $39.3 million as of December 31, 2022. This decrease was the result of the payoff of one credit in the amount of $3 million, combined with the upgrade of several loan relationships that make up the remainder of the decrease. The majority of commercial and industrial substandard loans is comprised of 15 different loan relationships with no specific industry concentration and an $11.0 million commercial loan relationship in the advertising industry that became a non-performing loan relationship late in 2021. December 31, 2022 (dollars in thousands) Pass Special Substandard Doubtful Total Commercial mortgage $ 536,705 $ 25,309 $ 3,386 $ — $ 565,400 Home equity lines and loans 57,822 — 1,577 — 59,399 Construction 260,085 11,870 — — 271,955 Commercial and industrial 295,502 6,587 39,289 — 341,378 Small business loans 131,690 — 4,465 — 136,155 Total $ 1,281,804 $ 43,766 $ 48,717 $ — $ 1,374,287 In addition to credit quality indicators as shown in the above tables, allowance allocations for residential mortgages, consumer loans and leases are also applied based on their performance status at the dates indicated: December 31, 2022 (dollars in thousands) Performing Non- Total Residential mortgage (1) $ 205,881 $ 1,454 $ 207,335 Consumer 488 — 488 Leases, net 138,084 902 138,986 Total $ 344,453 $ 2,356 $ 346,809 (1) There were four nonperforming residential mortgage loans at September 30, 2023 and four nonperforming residential mortgage loans at December 31, 2022 with a combined outstanding principal balance of $550 thousand and $558 thousand, respectively, which were carried at fair value and not included in the table above. Impaired Loans The following table details the recorded investment and principal balance of impaired loans by portfolio segment, their related Allowance and interest income recognized at the dates indicated. December 31, 2022 (dollars in thousands) Recorded investment Principal balance Related allowance Impaired loans with related allowance: Commercial and industrial $ 11,099 $ 12,095 $ 776 Small business loans 3,730 3,730 1,449 Total $ 14,829 $ 15,825 $ 2,225 Impaired loans without related allowance: Commercial mortgage $ 2,445 $ 2,456 $ — Commercial and industrial 1,448 1,494 — Small business loans 797 797 — Home equity lines and loans 1,097 1,097 — Residential mortgage 1,454 1,454 — Construction 1,206 1,206 — Leases 902 902 — Total 9,349 9,406 — Grand Total $ 24,178 $ 25,231 $ 2,225 The following table details the average recorded investment and interest income recognized on individually evaluated loans by portfolio segment. Three Months Ended Nine Months Ended (dollars in thousands) Average recorded investment Interest income recognized Average recorded investment Interest income recognized Individually evaluated loans with related allowance: Commercial and industrial $ 16,195 $ — $ 16,363 $ — Small business loans 666 — 666 — Total $ 16,861 $ — $ 17,029 $ — Individually evaluated loans without related allowance: Commercial mortgage 4,212 29 4,257 77 Commercial and industrial 286 — 293 — Small business loans 819 2 835 7 Home equity lines and loans 878 15 878 39 Residential mortgage 1,468 22 1,478 190 Construction 1,206 20 1,206 51 Leases 500 — 510 — Total $ 9,369 $ 88 $ 9,457 $ 364 Grand Total $ 26,230 $ 88 $ 26,486 $ 364 Troubled Debt Restructuring As result of the adoption of guidance related to CECL effective as of January 1, 2023, the Corporation had no reportable balances related to TDRs as of and for the three and nine months ended September 30, 2023. See Note 1 “Summary of Significant Accounting Policies” for additional information. The following table presents information about TDRs at the dates indicated: (dollars in thousands) December 31, TDRs included in nonperforming loans and leases $ 207 TDRs in compliance with modified terms 3,573 Total TDRs $ 3,780 There was 1 new modification on a commercial mortgage for $684 thousand for the year ended December 31, 2022. Total TDRs declined year-over-year, despite the new modification in 2022, as two TDRs from prior to 2021 totaling $563 thousand paid off in 2022. No modifications granted during the twelve months ended December 31, 2022 subsequently defaulted during the same time period. Modifications to Borrowers Experiencing Financial Difficulty An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the ACL on loans and leases, a change to the allowance for credit losses is generally not recorded upon modification. However, when principal forgiveness is provided, the amortized cost basis of the asset is written off against the ACL on loans and leases. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses. The following presents, by class of loans, information regarding accruing and nonaccrual modified loans to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2023. Three Months Ended September 30, 2023 Number of Loans Amortized Cost Basis % of Total Class of Financing Receivable Related Reserve (dollars in thousands) Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: Small business loans 3 $ 1,517 1.1% $ — Total 3 $ 1,517 $ — Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: Small business loans 2 $ 306 0.2% $ 77 Total 2 $ 306 $ 77 Nine Months Ended September 30, 2023 Number of Loans Amortized Cost Basis % of Total Class of Financing Receivable Related Reserve (dollars in thousands) Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: Small business loans 3 $ 1,517 1.1% $ — Commercial & industrial 1 2,407 0.8% — Total 4 $ 3,924 $ — Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: Small business loans 2 $ 306 0.2% $ 77 Commercial & industrial 1 1,406 0.5% 422 Total 3 $ 1,712 $ 499 The following presents, by class of loans, information regarding accruing and nonaccrual modified loans to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2023. Number of Loans Financial Effect Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: Small business loans 3 Extend maturity date Commercial & industrial 1 Extend maturity date Total 4 Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: Small business loans 2 Extend term and allow additional lender funding Commercial & industrial 1 Extend term and allow additional lender funding Total 3

Short-Term Borrowings and Long

Short-Term Borrowings and Long -Term Debt	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Short-Term Borrowings and Long-Term Debt	Short-Term Borrowings and Long-Term Debt The Corporation’s short-term borrowings generally consist of federal funds purchased and short-term borrowings extended under agreements with the FHLB or other correspondent banks. The Corporation has one unsecured Federal funds borrowing facility with a correspondent bank for up to $15 million. Federal funds purchased generally represent one-day borrowings. The Corporation had $0 in Federal funds purchased at September 30, 2023 and December 31, 2022. The Corporation also has a facility with the Federal Reserve Bank discount window of $7.7 million. This facility is fully secured by investment securities. There were no borrowings under this at September 30, 2023 and December 31, 2022. Additionally, the Corporation has a facility with the Federal Reserve’s BTFP of $33 million. This facility was created by the Federal Reserve in March 2023 and is fully secured by United States Treasury Bonds. There were $33 million in borrowings under this facility at September 30, 2023. The following table presents short-term borrowings at the dates indicated: (dollars in thousands) Maturity Interest September 30, December 31, FHLB Open Repo Plus Weekly 06/10/2024 5.68% $ 117,348 $ 113,147 FRB BTFP Advances 03/29/2024 4.76% 33,000 — Total Short-Term Borrowings $ 150,348 $ 113,147 The following table presents long-term borrowings at the dates indicated: (dollars in thousands) Maturity Interest September 30, December 31, FHLB Mid-term Repo Fixed 12/22/2025 4.23% $ 8,935 $ 8,935 FHLB Mid-term Repo Fixed 9/30/2024 4.60% 3,432 — FHLB Mid-term Repo Fixed 7/14/2026 4.57% 15,244 — Total Long-Term Borrowings $ 27,611 $ 8,935 The FHLB has also issued $112.7 million of letters of credit to the Corporation for the benefit of the Corporation’s public deposit funds and loan customers. These letters of credit expire throughout the remainder of 2023 and through 2024. The Corporation has a maximum borrowing capacity with the FHLB of $637.6 million as of September 30, 2023 and $505.4 million as of December 31, 2022. All advances and letters of credit from the FHLB are secured by a blanket lien on non-pledged, mortgage-related loans and securities as part of the Corporation’s borrowing agreement with the FHLB.

Servicing Assets

Servicing Assets	9 Months Ended
	Sep. 30, 2023
Transfers and Servicing [Abstract]
Servicing Assets	Servicing Assets The Corporation sells certain residential mortgage loans and the guaranteed portion of certain SBA loans to third parties and retains servicing rights and receives servicing fees. All such transfers are accounted for as sales. When the Corporation sells a residential mortgage loan, it does not retain any portion of that loan and its continuing involvement in such transfers is limited to certain servicing responsibilities. While the Corporation may retain a portion of certain sold SBA loans, its continuing involvement in the portion of the loan that was sold is limited to certain servicing responsibilities. When the contractual servicing fees on loans sold with servicing retained are expected to be more than adequate compensation to a servicer for performing the servicing, a capitalized servicing asset is recognized. Residential Mortgage Loans The related MSR asset is amortized over the period of the estimated future net servicing life of the underlying assets. MSRs are evaluated quarterly for impairment based upon the fair value of the rights as compared to their amortized cost. Impairment is recognized on the income statement to the extent the fair value is less than the capitalized amount of the MSR. The Corporation serviced $1.0 billion of residential mortgage loans as of September 30, 2023 and December 31, 2022. During the three and nine months ended September 30, 2023, the Corporation recognized servicing fee income of $612 thousand and $1.9 million, respectively, compared to $643 thousand and $1.9 million, during the three and nine months ended September 30, 2022, respectively. Changes in the MSR balance are summarized as follows: Three months ended Nine months ended (dollars in thousands) 2023 2022 2023 2022 Balance at beginning of the period $ 9,238 $ 10,610 $ 9,942 $ 10,756 Servicing rights capitalized 9 65 9 648 Amortization of servicing rights (319) (356) (1,025) (1,092) Change in valuation allowance — (4) 2 3 Balance at end of the period $ 8,928 $ 10,315 $ 8,928 $ 10,315 Activity in the valuation allowance for MSRs was as follows: Three months ended Nine months ended (dollars in thousands) 2023 2022 2023 2022 Valuation allowance, beginning of period $ — $ (1) $ (2) $ (8) Impairment — (4) — (4) Recovery — — 2 7 Valuation allowance, end of period $ — $ (5) $ — $ (5) The Corporation uses assumptions and estimates in determining the fair value of MSRs. These assumptions include prepayment speeds and discount rates. The assumptions used in the valuation were based on input from buyers, brokers and other qualified personnel, as well as market knowledge. At September 30, 2023, the key assumptions used to determine the fair value of the Corporation’s MSRs included a lifetime constant prepayment rate equal to 8.73% and a discount rate equal to 9.50%. At December 31, 2022, the key assumptions used to determine the fair value of the Corporation’s MSRs included a lifetime constant prepayment rate equal to 8.05% and a discount rate equal to 9.50%. Due in part to market volatility as interest rates increased, the prepayment speed assumption has decreased from December 31, 2022 to September 30, 2023. As interest rates have started to increase and the number of mortgage refinancings have started to decline, model inputs have been adjusted to align the MSRs fair value with market conditions. The sensitivity of the current fair value of the residential mortgage servicing rights to immediate 10% and 20% favorable and unfavorable changes in key economic assumptions are included in the following table. (dollars in thousands) September 30, December 31, Fair value of residential mortgage servicing rights $ 11,977 $ 11,567 Weighted average life (months) 28 22 Prepayment speed 8.73 % 8.05 % Impact on fair value: 10% adverse change $ (512) $ (268) 20% adverse change (986) (525) Discount rate 9.50 % 9.50 % Impact on fair value: 10% adverse change $ (460) $ (404) 20% adverse change (889) (777) The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of an adverse variation in a articular assumption on the fair value of the MSRs is calculated without changing any other assumption; while in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or counteract the effect of the change. SBA Loans SBA loan servicing assets are amortized over the period of the estimated future net servicing life of the underlying assets. SBA loan servicing assets are evaluated quarterly for impairment based upon the fair value of the rights as compared to their amortized cost. Impairment is recognized on the income statement to the extent the fair value is less than the capitalized amount of the SBA loan servicing asset. The Corporation serviced $211.1 million and $166.1 million of SBA loans, as of September 30, 2023 and December 31, 2022, respectively. Changes in the SBA loan servicing asset balance are summarized as follows: Three months ended Nine months ended (dollars in thousands) 2023 2022 2023 2022 Balance at beginning of the period $ 2,955 $ 2,250 $ 2,404 $ 2,009 Servicing rights capitalized 373 306 1,099 1,146 Amortization of servicing rights (243) (173) (690) (523) Change in valuation allowance (178) 109 94 (140) Balance at end of the period $ 2,907 $ 2,492 $ 2,907 $ 2,492 Activity in the valuation allowance for SBA loan servicing assets was as follows: Three months ended Nine months ended (dollars in thousands) 2023 2022 2023 2022 Valuation allowance, beginning of period $ (92) $ (345) $ (364) $ (96) Impairment (178) — (178) (280) Recovery — 109 272 140 Valuation allowance, end of period $ (270) $ (236) $ (270) $ (236) The Corporation uses assumptions and estimates in determining the fair value of SBA loan servicing rights. These assumptions include prepayment speeds, discount rates, and other assumptions. The assumptions used in the valuation were based on input from buyers, brokers and other qualified personnel, as well as market knowledge. At September 30, 2023, the key assumptions used to determine the fair value of the Corporation’s SBA loan servicing rights included a lifetime constant prepayment rate equal to 13.79% and a discount rate equal to 17.06%. At December 31, 2022, the key assumptions used to determine the fair value of the Corporation’s SBA loan servicing rights included a lifetime constant prepayment rate equal to 12.73% and a discount rate equal to 18.96%. The sensitivity of the current fair value of the SBA loan servicing rights to immediate 10% and 20% favorable and unfavorable changes in key economic assumptions are included in the following table. (dollars in thousands) September 30, December 31, Fair value of SBA loan servicing rights $ 3,009 $ 2,422 Weighted average life (years) 3.5 3.8 Prepayment speed 13.79 % 12.73 % Impact on fair value: 10% adverse change $ (102) $ (73) 20% adverse change (196) (141) Discount rate 17.06 % 18.96 % Impact on fair value: 10% adverse change $ (64) $ (53) 20% adverse change (125) (104) The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of an adverse variation in a particular assumption on the fair value of the SBA servicing rights is calculated without changing any other assumption; while in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or counteract the effect of the change.

Fair Value Measurements and Dis

Fair Value Measurements and Disclosures	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements and Disclosures	Fair Value Measurements and Disclosures The Corporation uses fair value measurements to record fair value adjustments to certain assets and liabilities. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Corporation’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation techniques or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. In accordance with this guidance, the Corporation groups its financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 – Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 – Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis. Securities The fair value of securities available-for-sale (carried at fair value) and held to maturity (carried at amortized cost) are determined by matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. Mortgage Loans Held for Sale The fair value of loans held for sale is based on secondary market prices. Mortgage Loans Held for Investment The fair value of mortgage loans held for investment is based on the price secondary markets are currently offering for similar loans using observable market data. Derivative Financial Instruments The fair values of forward commitments and interest rate swaps are based on market pricing and therefore are considered Level 2. Derivatives classified as Level 3 consist of interest rate lock commitments related to mortgage loan commitments. The determination of fair value includes assumptions related to the likelihood that a commitment will ultimately result in a closed loan, which is a significant unobservable assumption. A significant increase or decrease in the external market price would result in a significantly higher or lower fair value measurement. The following table presents the fair value of financial assets measured at fair value on a recurring basis by level within the fair value hierarchy at the dates indicated : September 30, 2023 (dollars in thousands) Total Level 1 Level 2 Level 3 Assets Securities available for sale: U.S. asset backed securities $ 11,476 $ — $ 11,476 $ — U.S. government agency MBS 11,134 — 11,134 — U.S. government agency CMO 19,372 — 19,372 — September 30, 2023 (dollars in thousands) Total Level 1 Level 2 Level 3 State and municipal securities 33,385 — 33,385 — U.S. Treasuries 29,529 29,529 — — Non-U.S. government agency CMO 10,220 — 10,220 Corporate bonds 7,102 — 7,102 — Equity investments 2,019 — 2,019 — Mortgage loans held for sale 23,144 — 23,144 — Mortgage loans held for investment 13,231 — 13,231 — Interest rate lock commitments 229 — — 229 Forward commitments 50 — 50 — Customer derivatives - interest rate swaps 4,387 — 4,387 — Interest rate swaps 1,023 — 1,023 — Total $ 166,303 $ 29,529 $ 136,545 $ 229 Liabilities Interest rate lock commitments $ 83 $ — $ — $ 83 Forward commitments — — — — Customer derivatives - interest rate swaps 4,321 — 4,321 — Risk Participation Agreements 6 — 6 — Total $ 4,410 $ — $ 4,327 $ 83 December 31, 2022 (dollars in thousands) Total Level 1 Level 2 Level 3 Assets Securities available for sale: U.S. asset backed securities $ 15,281 $ — $ 15,281 $ — U.S. government agency MBS 11,739 — 11,739 — U.S. government agency CMO 23,318 — 23,318 — State and municipal securities 38,838 — 38,838 — U.S. Treasuries 29,523 29,523 — — Non-U.S. government agency CMO 9,089 — 9,089 — Corporate bonds 7,558 — 7,558 — Equity investments 2,086 — 2,086 — Mortgage loans held for sale 22,243 — 22,243 — Mortgage loans held for investment 14,502 — 14,502 — Interest rate lock commitments 87 — — 87 Customer derivatives - interest rate swaps 3,846 — 3,846 — Total $ 178,110 $ 29,523 $ 148,500 $ 87 Liabilities Interest rate lock commitments $ 79 $ — $ — $ 79 Customer derivatives - interest rate swaps 3,799 — 3,799 — Risk Participation Agreements 17 — 17 — Total $ 3,895 $ — $ 3,816 $ 79 The following table presents assets measured at fair value on a nonrecurring basis at the dates indicated: (dollars in thousands) September 30, December 31, Mortgage servicing rights $ 8,928 $ 9,942 SBA loan servicing rights 2,907 2,404 Individually evaluated loans (1) Commercial and industrial 12,371 — Small business loans 2,456 2,281 Total $ 26,662 $ 14,627 (1) Individually evaluated loans are those in which the Corporation has measured impairment generally based on the fair value of the loan’s collateral. The increase in individually evaluated commercial and industrial loans noted above was due to reassessing how we evaluate the impairment on a loan relationship to now be based on the fair value of collateral. The following table details the valuation techniques for Level 3 individually evaluated loans. (dollars in thousands) Fair Value Valuation Technique Significant Unobservable Input Range of Inputs September 30, 2023 $ 14,827 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 2%-33% discount December 31, 2022 2,281 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 2%-15% discount Below is management’s estimate of the fair value of all financial instruments, whether carried at cost or fair value on the Corporation’s balance sheet. The following information should not be interpreted as an estimate of the fair value of the entire Corporation since a fair value calculation is only provided for a limited portion of the Corporation’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Corporation’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair value of the Corporation’s financial instruments: Cash and Cash Equivalents The carrying amounts reported in the balance sheet for cash and short-term instruments approximate those assets’ fair values. Loans Receivable The fair value of loans receivable is estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair value below is reflective of an exit price. Servicing Assets The Corporation estimates the fair value of mortgage servicing rights and SBA loan servicing rights using discounted cash flow models that calculate the present value of estimated future net servicing income. The model uses readily available prepayment speed assumptions for the interest rates of the portfolios serviced. These servicing rights are classified within Level 3 in the fair value hierarchy based upon management’s assessment of the inputs. The Corporation reviews the servicing rights portfolios on a quarterly basis for impairment. Individually Evaluated Loans Individually evaluated loans are those in which the Corporation has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third‑party appraisals of the properties, or discounted cash flows based upon the expected proceeds. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Individually evaluated loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the Allowance policy. Accrued Interest Receivable and Payable The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value. Deposit Liabilities The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. Short-Term Borrowings The carrying amounts of short-term borrowings approximate their fair values. Long-Term Debt Fair values of FHLB advances and the acquisition purchase note payable are estimated using discounted cash flow analysis, based on quoted prices for new FHLB advances with similar credit risk characteristics, terms and remaining maturity. These prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party. Subordinated Debt Fair values of junior subordinated debt are estimated using discounted cash flow analysis, based on market rates currently offered on such debt with similar credit risk characteristics, terms and remaining maturity. Off-Balance Sheet Financial Instruments Off-balance sheet instruments are primarily comprised of loan commitments, which are generally priced at market at the time of funding. Fees on commitments to extend credit and stand-by letters of credit are deemed to be immaterial and these instruments are expected to be settled at face value or expire unused. It is impractical to assign any fair value to these instruments and as a result they are not included in the table below. Fair values assigned to the notional value of interest rate lock commitments and forward sale contracts are based on market quotes. Derivative Financial Instruments The fair value of forward commitments and interest rate swaps is based on market pricing and therefore are considered Level 2. Derivatives classified as Level 3 consist of interest rate lock commitments related to mortgage loan commitments. The determination of fair value includes assumptions related to the likelihood that a commitment will ultimately result in a closed loan, which is a significant unobservable assumption. A significant increase or decrease in the external market price would result in a significantly higher or lower fair value measurement. The following table presents the estimated fair values of the Corporation’s financial instruments at the dates indicated: September 30, 2023 December 31, 2022 (dollars in thousands) Fair Value Carrying Fair value Carrying Fair value Financial assets: Cash and cash equivalents Level 1 $ 59,759 $ 59,759 $ 38,391 $ 38,391 Mortgage loans held for sale Level 2 23,144 23,144 22,243 22,243 Loans receivable, net of the allowance for credit losses Level 3 1,872,398 1,827,125 1,729,180 1,679,955 Mortgage loans held for investment Level 2 13,231 13,231 14,502 14,502 Financial liabilities: Deposits Level 2 1,808,645 1,780,200 1,712,479 1,575,600 Borrowings Level 2 177,959 179,000 122,082 122,082 Subordinated debentures Level 2 50,079 50,218 40,346 40,020 The following table includes a rollforward of interest rate lock commitments for which the Corporation utilized Level 3 inputs to determine fair value on a recurring basis for the periods indicated. Three months ended Nine months ended (dollars in thousands) 2023 2022 2023 2022 Balance at beginning of the period $ 261 $ 374 $ 87 $ 1,122 (Decrease) increase in value (32) (237) 142 (985) Balance at end of the period $ 229 $ 137 $ 229 $ 137 The following table details the valuation techniques for Level 3 interest rate lock commitments. (dollars in thousands) Fair Value Valuation Technique Significant Unobservable Input Range of Inputs Weighted Average September 30, 2023 $ 229 Market comparable pricing Pull through 1 - 99% 84.12% December 31, 2022 87 Market comparable pricing Pull through 1 - 99% 84.05

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments Risk Management Objective of Using Derivatives The Corporation is exposed to certain risk arising from both its business operations and economic conditions. The Corporation principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Corporation manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Corporation enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Corporation’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Corporation’s known or expected cash receipts and its known or expected cash payments principally related to the Corporation’s loan portfolio. Interest Rate Swaps The Corporation uses interest rate swap agreements to modify interest rate characteristics from variable to fixed or fixed to variable in order to reduce the impact of interest rate changes on future net interest income. The Corporation’s credit exposure on interest rate swaps includes changes in fair value and any collateral that is held by a third party. In June 2023, the Corporation entered into three interest rate swaps classified as cash flow hedges with notional amounts of $25 million each, to hedge the interest payments received on short term borrowings. Under the terms of the three swap agreements, the Corporation pays average fixed rates of 4.070%, 4.027% and 4.117%, and receives variable rates in return indexed to SOFR. The swaps mature between May, June, and December 2026. The Corporation performed an assessment of the hedge for effectiveness at the inception of the hedge and performs an assessment on a recurring basis and determined that the derivative currently is and is expected to be highly effective in offsetting changes in cash flows of the hedged item. For the three and nine months ended September 30, 2023, approximately $497 thousand and $825 thousand respectively, net of tax, is recorded in total comprehensive income as unrealized gains. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations and the addition of other hedges subsequent to September 30, 2023. At September 30, 2023, the combined notional amount of the interest rate swaps was $75 million and the fair value was an asset of $1.0 million. Mortgage Banking Derivatives In connection with its mortgage banking activities, the Corporation enters into commitments to originate certain fixed rate residential mortgage loans for customers, also referred to as interest rate locks. In addition, the Corporation may enter into forward commitments for the future sales or purchases of mortgage-backed securities to or from third-party counterparties to hedge the effect of changes in interest rates on the values of both the interest rate locks and mortgage loans held for sale. Forward sales commitments may also be in the form of commitments to sell individual mortgage loans or interest rate locks at a fixed price at a future date. The amount necessary to settle each interest rate lock is based on the price that secondary market investors would pay for loans with similar characteristics, including interest rate and term, as of the date fair value is measured. Interest rate lock commitments and forward commitments are recorded within other assets/liabilities on the consolidated balance sheets, with changes in fair values during the period recorded within net change in the fair value of derivative instruments on the consolidated statements of income. Customer Derivatives – Interest Rate Swaps Derivatives not designated as hedges are not speculative and result from a service the Corporation provides to certain customers to swap a fixed rate product for a variable rate product, or vice versa. The Corporation executes interest rate derivatives with commercial banking customers to facilitate their respective risk management strategies. Those interest rate derivatives are simultaneously hedged by offsetting derivatives that the Corporation executes with a third party, such that the Corporation minimizes its net interest rate risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. The following table presents a summary of notional amounts and fair values of derivative financial instruments at the dates indicated: September 30, 2023 December 31, 2022 (dollars in thousands) Balance Sheet Line Item Notional Amount Asset (Liability) Fair Value Notional Amount Asset (Liability) Fair Value Interest Rate Lock Commitments Positive fair values Other assets $ 40,015 $ 229 $ 16,590 $ 87 Negative fair values Other liabilities 21,260 (83) 16,108 (79) Total $ 61,275 $ 146 $ 32,698 $ 8 Forward Commitments Positive fair values Other assets $ 6,750 $ 50 $ — $ — Negative fair values Other liabilities — — — — Total $ 6,750 $ 50 $ — $ — Customer Derivatives - Interest Rate Swaps Positive fair values Other assets $ 46,337 $ 4,387 $ 43,779 $ 3,846 Negative fair values Other liabilities 46,337 (4,321) 43,779 (3,799) Total $ 92,674 $ 66 $ 87,558 $ 47 Risk Participation Agreements Positive fair values Other assets $ — $ — $ — $ — Negative fair values Other liabilities 7,111 (6) 7,200 (17) Total $ 7,111 $ (6) $ 7,200 $ (17) Interest Rate Swaps Positive fair values Other assets $ 75,000 $ 1,023 $ — $ — Negative fair values Other liabilities — — — — Total $ 75,000 $ 1,023 $ — $ — Total derivative financial instruments $ 242,810 $ 1,279 $ 127,456 $ 38 Interest rate lock commitments are considered Level 3 in the fair value hierarchy, while the forward commitments and interest rate swaps are considered Level 2 in the fair value hierarchy. The following table presents a summary of the fair value gains and (losses) on derivative financial instruments: Three months ended Nine months ended (dollars in thousands) 2023 2022 2023 2022 Interest Rate Lock Commitments $ 29 $ (405) $ 138 $ (1,380) Forward Commitments 37 485 50 516 Customer Derivatives - Interest Rate Swaps 33 47 19 151 Risk Participation Agreements 6 — 11 — Interest Rate Swaps 588 — 1,023 — Net fair value gains (losses) on derivative financial instruments $ 693 $ 127 $ 1,241 $ (713) Net realized gains on derivative hedging activities were $82 thousand and $81 thousand for the three and nine months ended September 30, 2023, respectively, and net realized gains on derivative hedging activities were $399 thousand and $4.9 million for the three and nine months ended September 30, 2022, respectively, and are included in non-interest income in the consolidated statements of income.

Segments

Segments	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
Segments	Segments ASC Topic 280 – Segment Reporting identifies operating segments as components of an enterprise which are evaluated regularly by the Corporation’s Chief Operating Decision Maker, our Chief Executive Officer, in deciding how to allocate resources and assess performance. The Corporation has applied the aggregation criterion set forth in this codification to the results of its operations. Our Banking segment (“Bank”) consists of commercial and retail banking. The Banking segment generates interest income from its lending and investing activities and is dependent on the gathering of lower cost deposits from its branch network or borrowed funds from other sources for funding its loans, resulting in the generation of net interest income. The Banking segment also derives revenues from other sources including gains on the sale of available for sale investment securities, service charges on deposit accounts, cash sweep fees, overdraft fees, BOLI income, title insurance fees, and other less significant non-interest income. Meridian Wealth (“Wealth”), a registered investment advisor and wholly-owned subsidiary of the Bank, provides a comprehensive array of wealth management services and products and the trusted guidance to help its clients and our banking customers prepare for the future. The unit generates non-interest income through advisory fees. Meridian’s mortgage banking segment (“Mortgage”) consists of 12 loan production offices throughout suburban Philadelphia and Maryland. The Mortgage segment originates 1 – 4 family residential mortgages and sells nearly all of its production to third party investors. The unit generates net interest income on the loans it originates and holds temporarily, then earns fee income (primarily gain on sales) at the time of the sale. The unit also recognizes income from document preparation fees, changes in portfolio pipeline fair values and net hedging gains (losses), if any. The table below summarizes income and expenses, directly attributable to each business line, which have been included in the statement of operations. Total assets for each segment is also provided. Segment Information Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 (Dollars in thousands) Bank Wealth Mortgage Total Bank Wealth Mortgage Total Net interest income $ 17,205 $ (15) $ 34 $ 17,224 $ 17,664 $ 218 $ 144 $ 18,026 Provision for credit losses 82 — — 82 526 — — 526 Net interest income after provision 17,123 (15) 34 17,142 17,138 218 144 17,500 Non-interest Income Mortgage banking income 80 — 4,739 4,819 72 — 7,257 7,329 Wealth management income — 1,258 — 1,258 — 1,114 — 1,114 SBA loan income 982 — — 982 989 — — 989 Net change in fair values 38 — (394) (356) 47 — (1,043) (996) Net gain on hedging activity — — 82 82 — — 399 399 Other 658 — 643 1,301 622 — 767 1,389 Non-interest income 1,758 1,258 5,070 8,086 1,730 1,114 7,380 10,224 Non-interest expense 12,564 826 6,628 20,018 11,354 780 8,127 20,261 Income (loss) before income taxes $ 6,317 $ 417 $ (1,524) $ 5,210 $ 7,514 $ 552 $ (603) $ 7,463 Total Assets $ 2,177,145 $ 8,833 $ 44,993 $ 2,230,971 $ 1,858,770 $ 7,927 $ 55,227 $ 1,921,924 Segment Information Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 (Dollars in thousands) Bank Wealth Mortgage Total Bank Wealth Mortgage Total Net interest income $ 51,928 $ (12) $ 85 $ 52,001 $ 50,197 $ 628 $ 785 $ 51,610 Provision for credit losses 2,186 — — 2,186 1,743 — — 1,743 Net interest income after provision 49,742 (12) 85 49,815 48,454 628 785 49,867 Non-interest Income Mortgage banking income 221 — 12,922 13,143 394 — 20,973 21,367 Wealth management income — 3,689 — 3,689 — 3,672 — 3,672 SBA loan income 3,463 — — 3,463 3,946 — — 3,946 Net change in fair values 30 — (574) (544) 151 — (4,457) (4,306) Net gain on hedging activity — — 81 81 — — 4,941 4,941 Other 1,982 — 2,034 4,016 1,776 (1) 2,333 4,108 Non-interest income 5,696 3,689 14,463 23,848 6,267 3,671 23,790 33,728 Non-interest expense 35,608 2,704 19,110 57,422 32,186 2,480 26,734 61,400 Income (loss) before income taxes $ 19,830 $ 973 $ (4,562) $ 16,241 $ 22,535 $ 1,819 $ (2,159) $ 22,195 Total Assets $ 2,177,145 $ 8,833 $ 44,993 $ 2,230,971 $ 1,858,770 $ 7,927 $ 55,227 $ 1,921,924

Subordinated Debentures

Subordinated Debentures	9 Months Ended
	Sep. 30, 2023
Subordinated Borrowings [Abstract]
Subordinated Debentures	Subordinated Debentures In September, Meridian Corporation raised $9.7 million in subordinated debt at 8.00% with a term of 10 years, the 2023 Debentures. The issuance of this subordinated debt improved tier 2 capital, as well as tangible book value of the Corporation. The funds will be used for general corporate purposes, including providing capital to the Corporation's bank subsidiary, Meridian Bank, and supporting organic growth. The subordinated debt also helped to improve Meridian Bank's tier 1 capital. The following table presents subordinated debentures at the dates indicated: (dollars in thousands) Maturity Interest September 30, December 31, 2023 Debentures 8/31/2033 8.00% $ 9,740 $ — 2019 Debentures 12/30/2029 5.38% 40,000 40,000 2013 Debentures 12/31/2028 6.50% 596 653 2011 Debentures 12/31/2026 6.00% 463 463 2008 Debentures 12/18/2023 6.00% 56 56 Debt Origination Costs (776) (826) Total Subordinated Debentures $ 50,079 $ 40,346 The Corporation issued the 2023 and 2019 Debentures, while the Bank issued the 2013, 2011 and 2008 Debentures. Upon formation of the bank holding company, the Corporation assumed the 2013, 2011 and 2008 Debentures. Interest is paid semi-annually on the 2023 and 2019 Debentures, and paid quarterly on the 2013, 2011 and 2008 debentures. The 2013, 2011 and 2008 Debentures are includable as Tier 2 capital for determining the Bank’s compliance with regulatory capital requirements. The 2019 and 2023 Debentures are included as Tier 2 capital for the Corporation and as Tier 1 capital for the Bank.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The Corporation’s unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial position and the results of operations for the interim periods presented have been included. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Amounts subject to significant estimates are items such as the allowance for credit losses, lending related commitments and the related unfunded commitment reserve, the fair value of financial instruments, other-than-temporary impairments of investment securities, and the valuations of goodwill, intangible assets, and servicing assets. These unaudited consolidated financial statements should be read in conjunction with the Corporation’s filings with the SEC (including our Annual Report on Form 10-K for the year ended December 31, 2022), subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K that update or provide information in addition to the information included in Form 10-K and Form 10-Q filings, if any. Certain prior period amounts have been reclassified to conform with current period presentation. Reclassifications had no effect on net income or stockholders’ equity. Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results for the year ending December 31, 2023 or for any other period.
Stock Split	Stock Split On February 28, 2023, the Corporation approved and declared a two-for-one stock split in the form of a stock dividend, paid March 20, 2023, to shareholders of record as of March 14, 2023. Under the terms of the stock split, the Corporation’s shareholders received a dividend of one share for every share held on the record date. The dividend was paid in authorized but unissued shares of common stock of the Corporation. The par value of the Corporation's stock was not affected by the split and remained at $1.00 per share. All share and per share amounts reported in the consolidated financial statements have been adjusted to reflect the two-for-one stock split.
Loans	Loans Loans held for investment are recorded at amortized cost, net of ACL. Amortized cost is the amount at which a financial asset is originated or acquired, adjusted for the amortization of premium and discount, net deferred fees or costs, collection of cash, and write-offs. Interest income on loans is recognized using the level yield method. Loan origination fees, commitment fees and direct loan origination costs are deferred and recognized over the life of the related loans using a level yield method over the period to maturity. Allowance for Credit Losses - Loans and Leases On January 1, 2023, the Corporation adopted ASU 2016-13, Financial Instruments-Credit Losses ("Topic 326"), which replaced the incurred loss impairment model with an expected loss methodology that is referred to as the CECL methodology. The Corporation now establishes an ACL in accordance with Topic 326. The ACL includes quantitative and qualitative factors that comprise management's current estimate of expected credit losses, including portfolio mix and segmentation, modeling methodology, historical loss experience, relevant available information from internal and external sources relating to reasonable and supportable forecasts about future economic conditions, prepayment speeds, and qualitative adjustment factors. The Corporation's portfolio segments, established based on similar risk characteristics and loss behaviors, are: • Commercial mortgage, commercial and industrial, construction, SBA loans, and commercial small business leases (commercial loans), and • Residential, equity secured lines and loans, and installment loans (retail loans). Expected credit losses are estimated over the contractual term, adjusted for expected prepayments and recoveries. The contractual term excludes any extensions, renewals and modifications unless the Corporation has reasonable expectations at the reporting date that it will result in a modification, or they are not unconditionally cancellable. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The allowance includes two primary components: (i) an allowance established on loans which share similar risk characteristics collectively evaluated for credit losses (collective basis) and (ii) an allowance established on loans which do not share similar risk characteristics with any loan segment and are individually evaluated for credit losses (individual basis). Loans that share similar risk characteristics are collectively reviewed for credit loss and are evaluated based on historical loss experience, adjusted for current economic conditions and future economic forecasts. Estimated losses are determined differently for commercial and consumer loans, and each portfolio segment is further segmented by internally assessed risk ratings. Management uses a third-party economic forecast to modify the calculated historical loss rates of the portfolio segments. The Corporation's economic forecast extends out 4 quarters (the forecast period) and reverts to the historical loss rates on a straight-line basis over 1 quarter (the reversion period) as we believe this to be reasonable and supportable in the current environment. The economic forecast and reversion periods will be evaluated periodically by management and updated as appropriate. The historical loss rates for commercial loans are estimated by determining the PD and expected LGD. The PD is calculated based on the historical rate of migration to an event of credit loss during the look-back period. The historical loss rates for retail loans is calculated based solely on average net loss rates over the same look-back period. The Corporation's current look-back period is 32 quarters which helps to ensure that historical loss rates are adequately considering losses over a full economic cycle. Loans that do not share similar risk characteristics with any loan segments are evaluated on an individual basis. These loans, which may include borrowers experiencing financial difficulties, are not included in the collective basis evaluation. When it is probable that collection of all principal and interest due according to their contractual terms is not likely, which is assessed based on the credit characteristics of the loan and/or payment status, these loans are individually reviewed and measured for potential credit loss. The amount of the potential credit loss is measured using one of three methods: (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the fair value of collateral, if the loan is collateral dependent; or (iii) the loan’s observable market price. If the measured fair value of the loan is less than the amortized cost basis of the loan, an allowance for credit loss is recorded. For collateral dependent loans, the expected credit losses at the individual asset level is the difference between the collateral's fair value (less cost to sell) and the amortized cost. Qualitative adjustment factors consider various internal and external conditions which are allocated among loan segments and take into consideration: • Current underwriting policies, staff and portfolio concentrations, • Risk rating accuracy, credit and administration, • Internal risk emergence (including internal trends of delinquency, portfolio growth, and collateral value), and • , Competitive environment, as it could impact loan structure and underwriting. These factors are based on their relative standing compared to the period in which historical losses are used in quantitative reserve estimates and current directional trends, and reasonable and supportable forecasts. Qualitative factors in the model can add to or subtract from quantitative reserves. Loan officers and risk managers meet at least quarterly to discuss and review the conditions and risks associated with individual problem loans. In addition, various regulatory agencies periodically review our loan ratings and allowance for credit losses and the Bank’s internal loan review department performs loan reviews. Accrued interest receivable on loans is excluded from the estimate of credit losses and is included in Accrued interest receivable on the Consolidated Balance Sheets. For additional detail regarding the allowance for credit losses and the provision for credit losses, see Note 5. Past Due and Nonaccrual Loans Past due loans and leases are defined as loans contractually past due 30 - 89 days as to principal or interest payments but which remain in accrual status, or loans delinquent 90 days or more but are considered well secured and in the process of collection. Nonaccruing loans and leases are those on which the accrual of interest has ceased. Loans are placed on nonaccrual status immediately if, in the opinion of management, collection is doubtful, or when principal or interest is past due 90 days or more and the loan is not well secured and in the process of collection. Interest accrued but not collected at the date a loan is placed on nonaccrual status is reversed and charged against interest income. In addition, the amortization of net deferred loan fees is suspended when a loan is placed on nonaccrual status. Subsequent cash receipts are applied either to the outstanding principal balance or recorded as interest income, depending on management’s assessment of the ultimate collectability of principal and interest. Loans are returned to accrual status when it is determined that the borrower has the ability to make all principal and interest payments in accordance with the terms of the loan (i.e. a consistent repayment record, generally six consecutive payments, has been demonstrated).
Securities	Securities Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each balance sheet date. Securities classified as available-for-sale are those securities that the Corporation intends to hold for an indefinite period of time but not necessarily to maturity. Securities available-for-sale are carried at fair value. Any decision to sell a security classified as available-for-sale would be based on various factors, including significant movement in interest rates, changes in maturity mix of the Corporation’s assets and liabilities, liquidity needs, regulatory capital considerations and other similar factors. Unrealized gains and losses are reported as increases or decreases in other comprehensive income. Gains or losses on disposition are based on the net proceeds and cost of the securities sold, adjusted for the amortization of premiums and accretion of discounts, using the specific identification method. Securities classified as held to maturity are those debt securities the Corporation has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs or changes in general economic conditions. These securities are carried at cost adjusted for the amortization of premium and accretion of discount, computed on a level yield basis. Investments in equity securities are recorded in accordance with ASC 321-10, Investments - Equity Securities. Equity securities are carried at fair value, with changes in fair value reported in net income. At September 30, 2023 and December 31, 2022, investments in equity securities consisted of an investment in mutual funds with a fair value of $2.0 million, and $2.1 million, respectively. The Corporation’s accounting policy specifies that (a) if the Corporation does not have the intent to sell a debt security prior to recovery and (b) it is more likely than not that it will not have to sell the debt security prior to recovery, the security would not be considered other-than-temporarily impaired, unless there is a credit loss. When the Corporation does not intend to sell the security, and it is more likely than not, the Corporation will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. The Corporation did not recognize any other-than-temporary impairment charges during the three and nine months ended September 30, 2023 and 2022. Allowance for Credit Losses - Held-to-Maturity Debt Securities We follow Accounting Standards Codification (ASC) 326-20, Financial Instruments - Credit Loss - Measured at Amortized Cost, to measure expected credit losses on held-to-maturity debt securities on a collective basis by security investment grade. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Corporation classifies the held-to-maturity debt securities into the following major security types: state and municipal securities. These securities are highly rated with a history of no credit losses, and are assigned ratings based on the most recent data from ratings agencies depending on the availability of data for the security. Credit ratings of held-to-maturity debt securities, which are a significant input in calculating the expected credit loss, are reviewed on a quarterly basis. Accrued interest receivable on held-to-maturity debt securities is excluded from the estimate of credit losses and is included in Accrued interest receivable on the Consolidated Balance Sheets. Allowance for Credit Losses - Available-for-Sale Debt Securities We follow ASC 326-30, Financial Instruments - Cre dit Loss - Available-for-Sale Debt Securities, which provides guidance related to the recognition of and expanded disclosure requirements for expected credit losses on available-for-sale debt securities. For available-for-sale debt securities in an unrealized loss position, the Corporation first evaluates whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either criteria is met, the security's amortized cost basis is reduced to fair value and recognized as a reduction to Noninterest income in the Consolidated Statements of Income. For debt securities available-for-sale which the Corporation does not intend to sell, or it is not likely the security would be required to be sold before recovery, we evaluate whether a decline in fair value has resulted from credit losses or other adverse factors, such as a change in the security's credit rating. In assessing whether a credit loss exists, the Corporation compares the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance is recorded, limited to the fair value of the security. Management performs this analysis on a quarterly basis to review the conditions and risks associated with the individual securities. Credit losses on an impaired security shall continue to be measured using the present value of expected future cash flows. Any impairment not recorded through an allowance for credit loss is included in other comprehensive income (loss), net of the tax effect. We are required to use our judgment in determining impairment in certain circumstances. For additional detail regarding debt securities, see Note 3.
Unfunded Lending Commitments	Unfunded Lending Commitments For unfunded lending commitments, the Corporation estimates expected credit losses over the contractual period in which the Corporation is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Corporation. The estimate includes consideration of the probability of default and utilization rate at default to calculate expected credit losses on commitments expected to be funded over its estimated life of one year, based on historical losses, and qualitative adjustment factors.
Pronouncements Adopted in 2023 and Pronouncements Not Yet Effective	Pronouncements Adopted in 2023 FASB ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments” The Corporation adopted ASU 2016-13, as amended, on January 1, 2023, which replaced the incurred loss methodology with an expected loss methodology that is referred to as the CECL methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loans, net of fees and costs, securities HTM, unfunded lending commitments (including loan commitments on loans held for investment, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842. In addition, ASC 326 made changes to the accounting for securities AFS which now requires credit losses to be presented as an allowance rather than as an other-than-temporary impairment on securities AFS management does not intend to sell or believes that it is more likely than not they will be required to sell. We applied the modified retrospective method for all financial assets measured at amortized cost and securities AFS. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Corporation recorded a one-time decrease to retained earnings of $2.2 million on January 1, 2023 for the cumulative effect of adopting ASC 326, net of tax. The transition adjustment includes $1.2 million and $974 thousand post-tax impacts for loans, net of fees and costs and unfunded loan commitments, respectively, due to higher expected credit losses compared to the incurred loss methodology primarily driven by longer duration commercial and consumer real estate loans. FASB ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” Issued in April 2019, ASU 2019-04 clarifies certain aspects of accounting for credit losses, hedging activities, and financial instruments (addressed by ASUs 2016-13, 2017-12, and 2016-01, respectively). The amendments to estimating expected credit losses (ASU 2016-13), in particular, how a company considers recoveries and extension options when estimating expected credit losses, are the most relevant to the Corporation. The ASU clarifies that (1) the estimate of expected credit losses should include expected recoveries of financial assets, including recoveries of amounts expected to be written off and those previously written off, and (2) that contractual extension or renewal options that are not unconditionally cancellable by the lender are considered when determining the contractual term over which expected credit losses are measured. The Corporation adopted ASU 2019-04 at the same time ASU 2016-13 was adopted. FASB ASU 2022-02, "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." In March 2022, the FASB issued ASU No. 2022-02, "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted CECL and enhance the disclosure requirements for modifications of receivables made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current period gross write-offs by year of origination for financing receivables and net investment in leases in the existing vintage disclosures. The Corporation adopted ASU 2022-02 at the same time ASU 2016-13 was adopted, as of January 1, 2023. The adoption of this ASU resulted in updated disclosures within our financial statements but otherwise did not have a material impact on the Corporation's financial statements. See Note 5. Pronouncements Not Yet Effective as of September 30, 2023: FASB ASU 2020-04 (Topic 848), “Reference Rate Reform (“ASC 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” Issued in March 2020, ASU 2020-04 contains optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The Corporation does not have a significant concentration of loans, derivative contracts, borrowings or other financial instruments with attributes that are either directly or indirectly dependent on LIBOR. The Corporation expects to adopt the LIBOR transition relief allowed under this standard. FASB ASU 2020-06, “Debt With Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” This ASU clarifies the accounting for certain financial instruments with characteristics of liabilities and equity. The amendments in this update reduce the number of accounting models for convertible debt instruments and convertible preferred stock by removing the cash conversion model and the beneficial conversion feature models. For public business entities that meet the definition of an SEC filer (excluding smaller reporting entities), the amendments are effective for fiscal years beginning after Dec. 15, 2021, and interim periods within. For all other entities, the amendments are effective for fiscal years beginning after Dec. 15, 2023, and interim periods within. Early adoption is permitted, but no earlier than for fiscal years beginning after Dec. 15, 2020. The Corporation does not expect this to have a material impact on our consolidated financial statements. FASB ASU 2023-02, "Investments Equity Method and Joint Ventures (Topic 323) Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method" In March 2023, the FASB issued ASU 2023-02, Investments Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method to allow reporting entities to consistently account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits. If certain conditions are met,

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Schedule of basic and diluted earnings per common share	Three months ended Nine months ended (dollars in thousands, except per share data) 2023 2022 2023 2022 Numerator for earnings per share: Net income available to common stockholders $ 4,005 $ 5,798 $ 12,673 $ 17,268 Denominators for earnings per share: Weighted average shares outstanding 11,228 11,936 11,307 12,076 Average unearned ESOP shares (170) (200) (178) (148) Basic weighted averages shares outstanding 11,058 11,736 11,129 11,928 Dilutive effects of assumed exercises of stock options 119 232 149 274 Dilutive effects of SERP shares 186 150 171 142 Diluted weighted averages shares outstanding 11,363 12,118 11,449 12,344 Basic earnings per share $ 0.36 $ 0.49 $ 1.14 $ 1.45 Diluted earnings per share $ 0.35 $ 0.48 $ 1.11 $ 1.40 Antidilutive shares excluded from computation of average dilutive earnings per share 490 474 490 472

Securities (Tables)

Securities (Tables)	9 Months Ended
	Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Schedule of amortized cost and fair value of securities	The following tables presents the amortized cost, allowance for credit losses, and fair value of securities at the dates indicated: September 30, 2023 (dollars in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Allowance for Credit Losses Fair value # of Securities in unrealized loss position Securities available-for-sale: U.S. asset backed securities $ 11,580 $ 98 $ (202) $ — $ 11,476 9 U.S. government agency MBS 11,744 — (610) — 11,134 13 U.S. government agency CMO 22,226 — (2,854) — 19,372 30 State and municipal securities 40,275 — (6,890) — 33,385 31 U.S. Treasuries 32,982 — (3,453) — 29,529 25 Non-U.S. government agency CMO 11,007 1 (788) — 10,220 13 Corporate bonds 8,200 — (1,098) — 7,102 13 Total securities available-for-sale $ 138,014 $ 99 $ (15,895) $ — $ 122,218 134 Securities held to maturity: State and municipal securities $ 36,232 $ — $ (5,567) $ — $ 30,665 24 Total securities held-to-maturity $ 36,232 $ — $ (5,567) $ — $ 30,665 24 December 31, 2022 (dollars in thousands) Amortized Gross Gross Fair # of Securities Securities available-for-sale: U.S. asset backed securities $ 15,581 $ 14 $ (314) $ 15,281 12 U.S. government agency MBS 12,272 5 (538) 11,739 12 U.S. government agency CMO 25,520 40 (2,242) 23,318 29 State and municipal securities 44,700 — (5,862) 38,838 34 U.S. Treasuries 32,980 — (3,457) 29,523 25 Non-U.S. government agency CMO 9,722 — (633) 9,089 11 Corporate bonds 8,201 — (643) 7,558 12 Total securities available-for-sale $ 148,976 $ 59 $ (13,689) $ 135,346 135 Securities held-to-maturity: State and municipal securities $ 37,479 $ — $ (4,394) $ 33,085 25
Schedule of investment gross unrealized loss in continuous unrealized loss position	The following table shows the Corporation’s investment gross unrealized losses and fair value aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at the dates indicated: September 30, 2023 Less than 12 Months 12 Months or more Total (dollars in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Securities available-for-sale: U.S. asset backed securities $ 1,345 $ — $ 6,489 $ (202) $ 7,834 $ (202) U.S. government agency mortgage-backed securities 3,092 (32) 8,042 (578) 11,134 (610) U.S. government agency collateralized mortgage obligations 2,728 (76) 16,644 (2,778) 19,372 (2,854) State and municipal securities — — 33,385 (6,890) 33,385 (6,890) U.S. Treasuries — — 29,529 (3,453) 29,529 (3,453) Non-U.S. government agency collateralized mortgage obligations 3,229 (22) 6,400 (766) 9,629 (788) Corporate bonds 907 (93) 6,195 (1,005) 7,102 (1,098) Total securities available-for-sale $ 11,301 $ (223) $ 106,684 $ (15,672) $ 117,985 $ (15,895) Securities held-to-maturity: State and municipal securities $ 2,966 $ (155) $ 27,245 $ (5,412) $ 30,211 $ (5,567) Total securities held-to-maturity $ 2,966 $ (155) $ 27,245 $ (5,412) $ 30,211 $ (5,567) December 31, 2022 Less than 12 Months 12 Months or more Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Securities available-for-sale: U.S. asset backed securities $ 6,531 $ (80) $ 4,863 $ (234) $ 11,394 $ (314) U.S. government agency MBS 6,022 (230) 4,637 (308) 10,659 (538) U.S. government agency CMO 9,859 (821) 9,549 (1,421) 19,408 (2,242) State and municipal securities 7,487 (726) 31,351 (5,136) 38,838 (5,862) U.S. Treasuries 1,902 (97) 27,622 (3,360) 29,524 (3,457) Non-U.S. government agency CMO 8,423 (464) 666 (169) 9,089 (633) Corporate bonds 5,019 (431) 1,538 (212) 6,557 (643) Total securities available-for-sale $ 45,243 $ (2,849) $ 80,226 $ (10,840) $ 125,469 $ (13,689) Securities held-to-maturity: State and municipal securities $ 10,130 $ (364) $ 22,543 $ (4,030) $ 32,673 $ (4,394) Total securities held-to-maturity $ 10,130 $ (364) $ 22,543 $ (4,030) $ 32,673 $ (4,394)
Schedule of amortized cost and carrying value of held-to-maturity securities and available-for-sale securities by contractual maturity	The amortized cost and carrying value of securities are shown below by contractual maturities at the dates indicated. Actual maturities may differ from contractual maturities as issuers may have the right to call or repay obligations with or without call or prepayment penalties. September 30, 2023 December 31, 2022 Available-for-sale Held-to-maturity Available-for-sale Held-to-maturity (dollars in thousands) Amortized cost Fair value Amortized cost Fair value Amortized cost Fair value Amortized cost Fair value Due in one year or less $ — $ — $ — $ — $ — $ — $ — $ — Due after one year through five years 30,793 27,666 4,226 4,147 18,865 17,289 4,275 4,238 Due after five years through ten years 19,161 17,047 2,901 2,326 28,647 25,459 2,998 2,683 Due after ten years 43,083 36,780 29,105 24,192 53,950 48,453 30,206 26,164 Subtotal 93,037 81,493 36,232 30,665 101,462 91,201 37,479 33,085 Mortgage-related securities 44,977 40,725 — — 47,514 44,145 — — Total $ 138,014 $ 122,218 $ 36,232 $ 30,665 $ 148,976 $ 135,346 $ 37,479 $ 33,085
Gross gain and (loss) on sale of investment securities available for sale	The following table presents the gross loss on sale of investment securities available for sale on the dates indicated: Three months ended Nine months ended (dollars in thousands) 2023 2022 2023 2022 Proceeds from sale of investment securities $ 155 $ — $ 13,514 $ — Gross gain on sale of available for sale investments — — — — Gross loss on sale of available for sale investments 3 — 58 —

Loans and Other Finance Recei_2

Loans and Other Finance Receivables (Tables)	9 Months Ended
	Sep. 30, 2023
Receivables [Abstract]
Summary of loans and leases outstanding	The following table presents loans and other finance receivables detailed by category at the dates indicated: (dollars in thousands) September 30, December 31, Real estate loans: Commercial mortgage $ 696,124 $ 565,400 Home equity lines and loans 73,844 59,399 Residential mortgage 256,343 221,837 Construction 276,590 271,955 Total real estate loans 1,302,901 1,118,591 Commercial and industrial 299,861 341,378 Small business loans 141,265 136,155 Consumer 434 488 Leases, net 138,963 138,986 Total loans $ 1,883,424 $ 1,735,598 Balances included in loans, net of fees and costs: Residential mortgage real estate loans accounted under fair value option, at fair value $ 13,231 $ 14,502 Residential mortgage real estate loans accounted under fair value option, at amortized cost 16,508 16,930 Unearned lease income included in leases, net (22,385) (25,715) Unamortized net deferred loan origination costs $ 2,205 $ 8,084
Schedule of age analysis of past due loans and leases	The following tables present an aging of the Corporation’s loans at the dates indicated: September 30, 2023 (dollars in thousands) 30-89 days past due 90+ days past due and still accruing Total past due Current Total Accruing Loans and leases Nonaccrual loans and leases Total loans portfolio and leases % Delinquent Commercial mortgage $ 574 $ — $ 574 $ 695,550 $ 696,124 $ — $ 696,124 0.08 % Home equity lines and loans 216 — 216 72,699 72,915 929 73,844 1.55 Residential mortgage (1) 5,525 — 5,525 247,721 253,246 3,097 256,343 3.36 Construction — — — 275,384 275,384 1,206 276,590 0.44 Commercial and industrial — — — 284,286 284,286 15,575 299,861 5.19 Small business loans 1,842 — 1,842 132,186 134,028 7,237 141,265 6.43 Consumer — — — 434 434 — 434 — Leases, net 2,346 — 2,346 135,550 137,896 1,067 138,963 2.46 % Total $ 10,503 $ — $ 10,503 $ 1,843,810 $ 1,854,313 $ 29,111 $ 1,883,424 2.10 % (1) Includes $13,231 of loans at fair value of which $12,108 are current, $376 are 30-89 days past due and $747 are nonaccrual. December 31, 2022 (dollars in thousands) 30-89 days past due 90+ days past due and still accruing Total past due Current Total Accruing Loans and leases Nonaccrual loans and leases Total loans portfolio and leases % Delinquent Commercial mortgage $ — $ — $ — $ 565,260 $ 565,260 $ 140 $ 565,400 0.02 % Home equity lines and loans 146 — 146 58,156 58,302 1,097 59,399 2.09 Residential mortgage (1) 4,262 — 4,262 215,490 219,752 2,085 221,837 2.86 Construction 1,206 — 1,206 270,749 271,955 — 271,955 0.44 Commercial and industrial 101 — 101 328,730 328,831 12,547 341,378 3.70 Small business loans 939 — 939 130,751 131,690 4,465 136,155 3.97 Consumer — — — 488 488 — 488 — Leases, net 1,173 — 1,173 136,911 138,084 902 138,986 1.49 % Total $ 7,827 $ — $ 7,827 $ 1,706,535 $ 1,714,362 $ 21,236 $ 1,735,598 1.67 % (1) Includes $14,502 of loans at fair value of which $13,760 are current, $184 are 30-89 days past due and $558 are nonaccrual.
Schedule of financing receivables, nonaccrual	The following table presents the amortized costs basis of loans and leases on nonaccrual status and loans 90 days or more past due and still accruing, net of fees and costs as of September 30, 2023. As of this date here were no loans 90 days or more past due and still accruing. September 30, 2023 (dollars in thousands) Nonaccrual Without ACL Nonaccrual With ACL Total Nonaccrual Home equity lines and loans $ 929 $ — $ 929 Residential mortgage 3,097 — 3,097 Construction 1,206 — 1,206 Commercial and industrial 3,346 12,229 15,575 Small business loans 3,457 3,780 7,237 Leases, net 1,067 — 1,067 Total $ 13,102 $ 16,009 $ 29,111
Schedule of non-accruing collateral dependent loans by class or loans	The following table presents the amortized cost basis of non-accruing collateral-dependent loans by class or loans as of September 30, 2023 under the current expected credit loss model: September 30, 2023 (dollars in thousands) Real Estate Equipment and Other Total Home equity lines and loans $ 929 $ — $ 929 Residential mortgage 3,097 — 3,097 Construction 1,206 — 1,206 Commercial and industrial 1,893 13,682 15,575 Small business loans 5,347 1,890 7,237 Leases, net — 1,067 1,067 Total $ 12,472 $ 16,639 $ 29,111

Allowance for Credit Losses (Ta

Allowance for Credit Losses (Tables)	9 Months Ended
	Sep. 30, 2023
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]
Schedule of allocation of the allowance for loan and lease losses	The following tables provide the activity of our allowance for credit losses for the three and nine months ended September 30, 2023 under the CECL model in accordance with ASC 326 (as adopted on January 1, 2023): Three Months Ended September 30, 2023 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provision (recovery of provision) for credit losses Ending balance Commercial mortgage $ 3,249 $ — $ — $ 916 $ 4,165 Home equity lines and loans 790 2 153 945 Residential mortgage 1,047 — — 157 1,204 Construction 1,294 — — (453) 841 Commercial and industrial 2,241 (130) 1 267 2,379 Small business loans 6,868 (272) 1 (511) 6,086 Consumer — (1) 1 — — Leases 4,753 (606) 90 (174) 4,063 Total $ 20,242 $ (1,009) $ 95 $ 355 $ 19,683 Nine Months Ended September 30, 2023 (dollars in thousands) Beginning Balance, prior to adoption of ASU No. 2016-13 for CECL Adjustment to initially apply ASU No. 2016-13 for CECL Charge-offs Recoveries Provision (recovery of provision) for credit losses Ending balance Commercial mortgage $ 4,095 $ (526) $ — $ — $ 596 $ 4,165 Home equity lines and loans 188 439 (87) 5 400 945 Residential mortgage 948 17 — — 239 1,204 Construction 3,075 (1,763) — — (471) 841 Commercial and industrial 4,012 (1,023) (130) 57 (537) 2,379 Small business loans 4,909 1,110 (598) 1 664 6,086 Consumer 3 (3) (1) 3 (2) — Leases 1,598 3,345 (2,845) 242 1,723 4,063 Total $ 18,828 $ 1,596 $ (3,661) $ 308 $ 2,612 $ 19,683 The following tables provide the activity of the allowance for loan and lease losses for the three and nine months ended September 30, 2022 under the incurred loss model: Three Months Ended September 30, 2022 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provision (Reversal) Ending balance Commercial mortgage $ 4,327 $ — $ — $ (238) $ 4,089 Home equity lines and loans 240 (12) 34 (25) 237 Residential mortgage 489 — — 217 706 Construction 2,481 — — 378 2,859 Commercial and industrial 6,287 — 39 (657) 5,669 Small business loans 3,681 — — 319 4,000 Consumer 3 — 1 (1) 3 Leases 1,297 (419) — 533 1,411 Total $ 18,805 $ (431) $ 74 $ 526 $ 18,974 Nine Months Ended September 30, 2022 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provision (Reversal) Ending balance Commercial mortgage $ 4,950 $ — $ — $ (861) $ 4,089 Home equity lines and loans 224 (12) 42 (17) 237 Residential mortgage 283 — 2 421 706 Construction 2,042 — — 817 2,859 Commercial and industrial 6,533 — 58 (922) 5,669 Small business loans 3,737 — — 263 4,000 Consumer 3 — 3 (3) 3 Leases 986 (1,682) 62 2,045 1,411 Total $ 18,758 $ (1,694) $ 167 $ 1,743 $ 18,974
Reconciliation of provision for credit losses	The following table provides a reconciliation of the provision for credit losses on the consolidated statements of income between the funded and unfunded components at the dates indicated: Three Months Ended Nine Months Ended (dollars in thousands) 2023 2022 2023 2022 Provision for credit losses - funded $ 355 $ 526 $ 2,612 $ 1,743 Recovery of provision for credit losses - unfunded (273) — (426) — Total provision for credit losses $ 82 $ 526 $ 2,186 $ 1,743
Allowance allocated by portfolio segment	The following tables detail the allocation of the ACL and the carrying value for loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases at the dates indicated: September 30, 2023 Allowance for credit losses Carrying value of loans and leases (dollars in thousands) Individually evaluated Collectively evaluated Total Individually evaluated Collectively evaluated Total Commercial mortgage $ — $ 4,165 $ 4,165 $ — $ 696,124 $ 696,124 Home equity lines and loans — 945 945 929 72,915 73,844 Residential mortgage — 1,204 1,204 2,164 240,948 243,112 Construction — 841 841 1,206 275,384 276,590 Commercial and industrial 1,145 1,234 2,379 15,575 284,286 299,861 Small business loans 1,393 4,693 6,086 7,237 134,028 141,265 Consumer — — — — 434 434 Leases, net — 4,063 4,063 1,067 137,896 138,963 Total (1) $ 2,538 $ 17,145 $ 19,683 $ 28,178 $ 1,842,015 $ 1,870,193 ( 1) Excludes deferred fees and loans carried at fair value. The following table details the pre-CECL allocation of the allowance for loan and lease losses and the carrying value for loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment at the dates indicated: December 31, 2022 Allowance on loans and leases Carrying value of loans and leases (dollars in thousands) Individually evaluated Collectively evaluated Total Individually evaluated Collectively evaluated Total Commercial mortgage $ — $ 4,095 $ 4,095 $ 2,445 $ 562,955 $ 565,400 Home equity lines and loans — 188 188 1,097 58,302 59,399 Residential mortgage — 948 948 1,454 205,881 207,335 Construction — 3,075 3,075 1,206 270,749 271,955 Commercial and industrial 776 3,236 4,012 12,547 328,831 341,378 Small business loans 1,449 3,460 4,909 4,527 131,628 136,155 Consumer — 3 3 — 488 488 Leases, net — 1,598 1,598 902 138,084 138,986 Total (1) $ 2,225 $ 16,603 $ 18,828 $ 24,178 $ 1,696,918 $ 1,721,096 ( 1) Excludes deferred fees and loans carried at fair value.
Schedule of carrying value of loans and leases by portfolio segment based on the credit quality indicators	he following tables detail the carrying value of loans and leases by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses at the dates indicated: September 30, 2023 Revolving Loans Converted to Term Loans Revolving Loans Total Term Loans 2023 2022 2021 2020 2019 Prior Commercial mortgage Pass/Watch $ 82,314 $ 137,909 $ 161,963 $ 96,103 $ 51,149 $ 136,069 $ 511 $ 426 $ 666,444 Special Mention — 4,625 — — 9,291 10,060 667 — 24,643 Substandard 200 — 574 — 1,648 2,287 — 328 5,037 Total $ 82,514 $ 142,534 $ 162,537 $ 96,103 $ 62,088 $ 148,416 $ 1,178 $ 754 $ 696,124 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction Pass/Watch $ 53,495 $ 101,776 $ 29,115 $ 47,458 $ 4,548 $ 2,120 $ 123 $ 24,083 $ 262,718 Special Mention — — 1,084 — 511 8,934 — 2,137 12,666 Substandard — — — — — 1,206 — — 1,206 Total $ 53,495 $ 101,776 $ 30,199 $ 47,458 $ 5,059 $ 12,260 $ 123 $ 26,220 $ 276,590 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and industrial Pass/Watch $ 18,566 $ 35,631 $ 26,734 $ 8,891 $ 4,579 $ 37,658 $ — $ 126,466 $ 258,525 Special Mention 1,000 4,766 — — — 1,665 — 2,816 10,247 Substandard — — 2,906 — 300 9,730 — 18,153 31,089 Total $ 19,566 $ 40,397 $ 29,640 $ 8,891 $ 4,879 $ 49,053 $ — $ 147,435 $ 299,861 Current period gross charge-offs $ (73) $ (55) $ — $ (2) $ — $ — $ — $ — $ (130) Small business loans Pass/Watch $ 39,356 $ 19,977 $ 39,053 $ 13,148 $ 6,996 $ 1,018 $ — $ 13,102 $ 132,650 Special Mention — — — — — — — 100 100 Substandard — 673 5,038 1,914 890 — — — 8,515 Total $ 39,356 $ 20,650 $ 44,091 $ 15,062 $ 7,886 $ 1,018 $ — $ 13,202 $ 141,265 Current period gross charge-offs $ — $ — $ — $ (411) $ (187) $ — $ — $ — $ (598) Total by risk rating Pass/Watch $ 193,731 $ 295,293 $ 256,865 $ 165,600 $ 67,272 $ 176,865 $ 634 $ 164,077 $ 1,320,337 Special Mention 1,000 9,391 1,084 — 9,802 20,659 667 5,053 47,656 Substandard 200 673 8,518 1,914 2,838 13,223 — 18,481 45,847 Total $ 194,931 $ 305,357 $ 266,467 $ 167,514 $ 79,912 $ 210,747 $ 1,301 $ 187,611 $ 1,413,840 Total current period gross charge-offs $ (73) $ (55) $ — $ (413) $ (187) $ — $ — $ — $ (728) The Corporation had no loans with a risk rating of Doubtful included within recorded investment in loans and leases held for investment at September 30, 2023. In addition to credit quality indicators as shown in the above tables, allowance allocations for residential mortgages, consumer loans and leases are also applied based on their performance status at the dates indicated: September 30, 2023 Revolving Loans Total Term Loans 2023 2022 2021 2020 2019 Prior Home equity lines and loans Performing $ 52 $ 801 $ 318 $ 359 $ 2,289 $ 2,375 $ 66,721 $ 72,915 Nonperforming — — — — — — 929 929 Total $ 52 $ 801 $ 318 $ 359 $ 2,289 $ 2,375 $ 67,650 $ 73,844 Current period gross charge-offs $ — $ — $ — $ (54) $ — $ (33) $ — $ (87) Residential mortgage (1) Performing $ 42,601 $ 157,600 $ 21,967 $ 7,353 $ 461 $ 11,408 $ — $ 241,390 Nonperforming — — — — 1,722 — 1,722 Total $ 42,601 $ 157,600 $ 21,967 $ 7,353 $ 461 $ 13,130 $ — $ 243,112 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer Performing $ 41 $ 35 $ — $ — $ 34 $ 248 $ 76 $ 434 Nonperforming — — — — — — — — Total $ 41 $ 35 $ — $ — $ 34 $ 248 $ 76 $ 434 Current period gross charge-offs $ — $ (1) $ — $ — $ — $ — $ — $ (1) Leases, net Performing $ 25,583 $ 64,581 $ 35,930 $ 11,802 $ — $ — $ — $ 137,896 Nonperforming — 499 385 183 — — — 1,067 Total $ 25,583 $ 65,080 $ 36,315 $ 11,985 $ — $ — $ — $ 138,963 Current period gross charge-offs $ (3) $ (1,438) $ (1,268) $ (136) $ — $ — $ — $ (2,845) Total by Payment Performance Performing $ 68,277 $ 223,017 $ 58,215 $ 19,514 $ 2,784 $ 14,031 $ 66,797 $ 452,635 Nonperforming — 499 385 183 — 1,722 929 3,718 Total $ 68,277 $ 223,516 $ 58,600 $ 19,697 $ 2,784 $ 15,753 $ 67,726 $ 456,353 Total current period gross charge-offs $ (3) $ (1,439) $ (1,268) $ (190) $ — $ (33) $ — $ (2,933) (1) Excludes $14,403 of loans at fair value. December 31, 2022 (dollars in thousands) Pass Special Substandard Doubtful Total Commercial mortgage $ 536,705 $ 25,309 $ 3,386 $ — $ 565,400 Home equity lines and loans 57,822 — 1,577 — 59,399 Construction 260,085 11,870 — — 271,955 Commercial and industrial 295,502 6,587 39,289 — 341,378 Small business loans 131,690 — 4,465 — 136,155 Total $ 1,281,804 $ 43,766 $ 48,717 $ — $ 1,374,287
Schedule of allocations based on the credit quality indicators	In addition to credit quality indicators as shown in the above tables, allowance allocations for residential mortgages, consumer loans and leases are also applied based on their performance status at the dates indicated: December 31, 2022 (dollars in thousands) Performing Non- Total Residential mortgage (1) $ 205,881 $ 1,454 $ 207,335 Consumer 488 — 488 Leases, net 138,084 902 138,986 Total $ 344,453 $ 2,356 $ 346,809
Schedule of recorded investment and principal balance of impaired loans	The following table details the recorded investment and principal balance of impaired loans by portfolio segment, their related Allowance and interest income recognized at the dates indicated. December 31, 2022 (dollars in thousands) Recorded investment Principal balance Related allowance Impaired loans with related allowance: Commercial and industrial $ 11,099 $ 12,095 $ 776 Small business loans 3,730 3,730 1,449 Total $ 14,829 $ 15,825 $ 2,225 Impaired loans without related allowance: Commercial mortgage $ 2,445 $ 2,456 $ — Commercial and industrial 1,448 1,494 — Small business loans 797 797 — Home equity lines and loans 1,097 1,097 — Residential mortgage 1,454 1,454 — Construction 1,206 1,206 — Leases 902 902 — Total 9,349 9,406 — Grand Total $ 24,178 $ 25,231 $ 2,225
Schedule of average recorded investment on impaired loans	The following table details the average recorded investment and interest income recognized on individually evaluated loans by portfolio segment. Three Months Ended Nine Months Ended (dollars in thousands) Average recorded investment Interest income recognized Average recorded investment Interest income recognized Individually evaluated loans with related allowance: Commercial and industrial $ 16,195 $ — $ 16,363 $ — Small business loans 666 — 666 — Total $ 16,861 $ — $ 17,029 $ — Individually evaluated loans without related allowance: Commercial mortgage 4,212 29 4,257 77 Commercial and industrial 286 — 293 — Small business loans 819 2 835 7 Home equity lines and loans 878 15 878 39 Residential mortgage 1,468 22 1,478 190 Construction 1,206 20 1,206 51 Leases 500 — 510 — Total $ 9,369 $ 88 $ 9,457 $ 364 Grand Total $ 26,230 $ 88 $ 26,486 $ 364
Financing receivable, modified	The following table presents information about TDRs at the dates indicated: (dollars in thousands) December 31, TDRs included in nonperforming loans and leases $ 207 TDRs in compliance with modified terms 3,573 Total TDRs $ 3,780 The following presents, by class of loans, information regarding accruing and nonaccrual modified loans to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2023. Three Months Ended September 30, 2023 Number of Loans Amortized Cost Basis % of Total Class of Financing Receivable Related Reserve (dollars in thousands) Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: Small business loans 3 $ 1,517 1.1% $ — Total 3 $ 1,517 $ — Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: Small business loans 2 $ 306 0.2% $ 77 Total 2 $ 306 $ 77 Nine Months Ended September 30, 2023 Number of Loans Amortized Cost Basis % of Total Class of Financing Receivable Related Reserve (dollars in thousands) Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: Small business loans 3 $ 1,517 1.1% $ — Commercial & industrial 1 2,407 0.8% — Total 4 $ 3,924 $ — Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: Small business loans 2 $ 306 0.2% $ 77 Commercial & industrial 1 1,406 0.5% 422 Total 3 $ 1,712 $ 499 The following presents, by class of loans, information regarding accruing and nonaccrual modified loans to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2023. Number of Loans Financial Effect Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: Small business loans 3 Extend maturity date Commercial & industrial 1 Extend maturity date Total 4 Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: Small business loans 2 Extend term and allow additional lender funding Commercial & industrial 1 Extend term and allow additional lender funding Total 3

Short-Term Borrowings and Long-

Short-Term Borrowings and Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Schedule of short term borrowings	The following table presents short-term borrowings at the dates indicated: (dollars in thousands) Maturity Interest September 30, December 31, FHLB Open Repo Plus Weekly 06/10/2024 5.68% $ 117,348 $ 113,147 FRB BTFP Advances 03/29/2024 4.76% 33,000 — Total Short-Term Borrowings $ 150,348 $ 113,147
Schedule of long term debt	The following table presents long-term borrowings at the dates indicated: (dollars in thousands) Maturity Interest September 30, December 31, FHLB Mid-term Repo Fixed 12/22/2025 4.23% $ 8,935 $ 8,935 FHLB Mid-term Repo Fixed 9/30/2024 4.60% 3,432 — FHLB Mid-term Repo Fixed 7/14/2026 4.57% 15,244 — Total Long-Term Borrowings $ 27,611 $ 8,935

Servicing Assets (Tables)

Servicing Assets (Tables)	9 Months Ended
	Sep. 30, 2023
Mortgage Servicing Rights
Servicing Assets at Fair Value [Line Items]
Schedule of servicing assets	Changes in the MSR balance are summarized as follows: Three months ended Nine months ended (dollars in thousands) 2023 2022 2023 2022 Balance at beginning of the period $ 9,238 $ 10,610 $ 9,942 $ 10,756 Servicing rights capitalized 9 65 9 648 Amortization of servicing rights (319) (356) (1,025) (1,092) Change in valuation allowance — (4) 2 3 Balance at end of the period $ 8,928 $ 10,315 $ 8,928 $ 10,315
Schedule of valuation allowance for servicing assets	Activity in the valuation allowance for MSRs was as follows: Three months ended Nine months ended (dollars in thousands) 2023 2022 2023 2022 Valuation allowance, beginning of period $ — $ (1) $ (2) $ (8) Impairment — (4) — (4) Recovery — — 2 7 Valuation allowance, end of period $ — $ (5) $ — $ (5)
Schedule of sensitivity of fair value of servicing assets	The sensitivity of the current fair value of the residential mortgage servicing rights to immediate 10% and 20% favorable and unfavorable changes in key economic assumptions are included in the following table. (dollars in thousands) September 30, December 31, Fair value of residential mortgage servicing rights $ 11,977 $ 11,567 Weighted average life (months) 28 22 Prepayment speed 8.73 % 8.05 % Impact on fair value: 10% adverse change $ (512) $ (268) 20% adverse change (986) (525) Discount rate 9.50 % 9.50 % Impact on fair value: 10% adverse change $ (460) $ (404) 20% adverse change (889) (777)
SBA Loan Servicing Rights
Servicing Assets at Fair Value [Line Items]
Schedule of servicing assets	Changes in the SBA loan servicing asset balance are summarized as follows: Three months ended Nine months ended (dollars in thousands) 2023 2022 2023 2022 Balance at beginning of the period $ 2,955 $ 2,250 $ 2,404 $ 2,009 Servicing rights capitalized 373 306 1,099 1,146 Amortization of servicing rights (243) (173) (690) (523) Change in valuation allowance (178) 109 94 (140) Balance at end of the period $ 2,907 $ 2,492 $ 2,907 $ 2,492
Schedule of valuation allowance for servicing assets	Activity in the valuation allowance for SBA loan servicing assets was as follows: Three months ended Nine months ended (dollars in thousands) 2023 2022 2023 2022 Valuation allowance, beginning of period $ (92) $ (345) $ (364) $ (96) Impairment (178) — (178) (280) Recovery — 109 272 140 Valuation allowance, end of period $ (270) $ (236) $ (270) $ (236)
Schedule of sensitivity of fair value of servicing assets	The sensitivity of the current fair value of the SBA loan servicing rights to immediate 10% and 20% favorable and unfavorable changes in key economic assumptions are included in the following table. (dollars in thousands) September 30, December 31, Fair value of SBA loan servicing rights $ 3,009 $ 2,422 Weighted average life (years) 3.5 3.8 Prepayment speed 13.79 % 12.73 % Impact on fair value: 10% adverse change $ (102) $ (73) 20% adverse change (196) (141) Discount rate 17.06 % 18.96 % Impact on fair value: 10% adverse change $ (64) $ (53) 20% adverse change (125) (104)

Fair Value Measurements and D_2

Fair Value Measurements and Disclosures (Tables)	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Schedule of financial assets measured at fair value on a recurring basis	The following table presents the fair value of financial assets measured at fair value on a recurring basis by level within the fair value hierarchy at the dates indicated : September 30, 2023 (dollars in thousands) Total Level 1 Level 2 Level 3 Assets Securities available for sale: U.S. asset backed securities $ 11,476 $ — $ 11,476 $ — U.S. government agency MBS 11,134 — 11,134 — U.S. government agency CMO 19,372 — 19,372 — September 30, 2023 (dollars in thousands) Total Level 1 Level 2 Level 3 State and municipal securities 33,385 — 33,385 — U.S. Treasuries 29,529 29,529 — — Non-U.S. government agency CMO 10,220 — 10,220 Corporate bonds 7,102 — 7,102 — Equity investments 2,019 — 2,019 — Mortgage loans held for sale 23,144 — 23,144 — Mortgage loans held for investment 13,231 — 13,231 — Interest rate lock commitments 229 — — 229 Forward commitments 50 — 50 — Customer derivatives - interest rate swaps 4,387 — 4,387 — Interest rate swaps 1,023 — 1,023 — Total $ 166,303 $ 29,529 $ 136,545 $ 229 Liabilities Interest rate lock commitments $ 83 $ — $ — $ 83 Forward commitments — — — — Customer derivatives - interest rate swaps 4,321 — 4,321 — Risk Participation Agreements 6 — 6 — Total $ 4,410 $ — $ 4,327 $ 83 December 31, 2022 (dollars in thousands) Total Level 1 Level 2 Level 3 Assets Securities available for sale: U.S. asset backed securities $ 15,281 $ — $ 15,281 $ — U.S. government agency MBS 11,739 — 11,739 — U.S. government agency CMO 23,318 — 23,318 — State and municipal securities 38,838 — 38,838 — U.S. Treasuries 29,523 29,523 — — Non-U.S. government agency CMO 9,089 — 9,089 — Corporate bonds 7,558 — 7,558 — Equity investments 2,086 — 2,086 — Mortgage loans held for sale 22,243 — 22,243 — Mortgage loans held for investment 14,502 — 14,502 — Interest rate lock commitments 87 — — 87 Customer derivatives - interest rate swaps 3,846 — 3,846 — Total $ 178,110 $ 29,523 $ 148,500 $ 87 Liabilities Interest rate lock commitments $ 79 $ — $ — $ 79 Customer derivatives - interest rate swaps 3,799 — 3,799 — Risk Participation Agreements 17 — 17 — Total $ 3,895 $ — $ 3,816 $ 79
Schedule of financial assets measured at fair value on non-recurring basis	The following table presents assets measured at fair value on a nonrecurring basis at the dates indicated: (dollars in thousands) September 30, December 31, Mortgage servicing rights $ 8,928 $ 9,942 SBA loan servicing rights 2,907 2,404 Individually evaluated loans (1) Commercial and industrial 12,371 — Small business loans 2,456 2,281 Total $ 26,662 $ 14,627
Schedule of measurement inputs	The following table details the valuation techniques for Level 3 individually evaluated loans. (dollars in thousands) Fair Value Valuation Technique Significant Unobservable Input Range of Inputs September 30, 2023 $ 14,827 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 2%-33% discount December 31, 2022 2,281 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 2%-15% discount The following table details the valuation techniques for Level 3 interest rate lock commitments. (dollars in thousands) Fair Value Valuation Technique Significant Unobservable Input Range of Inputs Weighted Average September 30, 2023 $ 229 Market comparable pricing Pull through 1 - 99% 84.12% December 31, 2022 87 Market comparable pricing Pull through 1 - 99% 84.05
Schedule of estimated fair values of financial instruments	The following table presents the estimated fair values of the Corporation’s financial instruments at the dates indicated: September 30, 2023 December 31, 2022 (dollars in thousands) Fair Value Carrying Fair value Carrying Fair value Financial assets: Cash and cash equivalents Level 1 $ 59,759 $ 59,759 $ 38,391 $ 38,391 Mortgage loans held for sale Level 2 23,144 23,144 22,243 22,243 Loans receivable, net of the allowance for credit losses Level 3 1,872,398 1,827,125 1,729,180 1,679,955 Mortgage loans held for investment Level 2 13,231 13,231 14,502 14,502 Financial liabilities: Deposits Level 2 1,808,645 1,780,200 1,712,479 1,575,600 Borrowings Level 2 177,959 179,000 122,082 122,082 Subordinated debentures Level 2 50,079 50,218 40,346 40,020
Schedule of level 3 inputs reconciliation	The following table includes a rollforward of interest rate lock commitments for which the Corporation utilized Level 3 inputs to determine fair value on a recurring basis for the periods indicated. Three months ended Nine months ended (dollars in thousands) 2023 2022 2023 2022 Balance at beginning of the period $ 261 $ 374 $ 87 $ 1,122 (Decrease) increase in value (32) (237) 142 (985) Balance at end of the period $ 229 $ 137 $ 229 $ 137

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Summary of the notional amounts and fair values of derivative financial instruments	The following table presents a summary of notional amounts and fair values of derivative financial instruments at the dates indicated: September 30, 2023 December 31, 2022 (dollars in thousands) Balance Sheet Line Item Notional Amount Asset (Liability) Fair Value Notional Amount Asset (Liability) Fair Value Interest Rate Lock Commitments Positive fair values Other assets $ 40,015 $ 229 $ 16,590 $ 87 Negative fair values Other liabilities 21,260 (83) 16,108 (79) Total $ 61,275 $ 146 $ 32,698 $ 8 Forward Commitments Positive fair values Other assets $ 6,750 $ 50 $ — $ — Negative fair values Other liabilities — — — — Total $ 6,750 $ 50 $ — $ — Customer Derivatives - Interest Rate Swaps Positive fair values Other assets $ 46,337 $ 4,387 $ 43,779 $ 3,846 Negative fair values Other liabilities 46,337 (4,321) 43,779 (3,799) Total $ 92,674 $ 66 $ 87,558 $ 47 Risk Participation Agreements Positive fair values Other assets $ — $ — $ — $ — Negative fair values Other liabilities 7,111 (6) 7,200 (17) Total $ 7,111 $ (6) $ 7,200 $ (17) Interest Rate Swaps Positive fair values Other assets $ 75,000 $ 1,023 $ — $ — Negative fair values Other liabilities — — — — Total $ 75,000 $ 1,023 $ — $ — Total derivative financial instruments $ 242,810 $ 1,279 $ 127,456 $ 38
Summary of the fair value gains and losses on derivative financial instruments	The following table presents a summary of the fair value gains and (losses) on derivative financial instruments: Three months ended Nine months ended (dollars in thousands) 2023 2022 2023 2022 Interest Rate Lock Commitments $ 29 $ (405) $ 138 $ (1,380) Forward Commitments 37 485 50 516 Customer Derivatives - Interest Rate Swaps 33 47 19 151 Risk Participation Agreements 6 — 11 — Interest Rate Swaps 588 — 1,023 — Net fair value gains (losses) on derivative financial instruments $ 693 $ 127 $ 1,241 $ (713)

Segments (Tables)

Segments (Tables)	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
Schedule of business segment financial information	The table below summarizes income and expenses, directly attributable to each business line, which have been included in the statement of operations. Total assets for each segment is also provided. Segment Information Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 (Dollars in thousands) Bank Wealth Mortgage Total Bank Wealth Mortgage Total Net interest income $ 17,205 $ (15) $ 34 $ 17,224 $ 17,664 $ 218 $ 144 $ 18,026 Provision for credit losses 82 — — 82 526 — — 526 Net interest income after provision 17,123 (15) 34 17,142 17,138 218 144 17,500 Non-interest Income Mortgage banking income 80 — 4,739 4,819 72 — 7,257 7,329 Wealth management income — 1,258 — 1,258 — 1,114 — 1,114 SBA loan income 982 — — 982 989 — — 989 Net change in fair values 38 — (394) (356) 47 — (1,043) (996) Net gain on hedging activity — — 82 82 — — 399 399 Other 658 — 643 1,301 622 — 767 1,389 Non-interest income 1,758 1,258 5,070 8,086 1,730 1,114 7,380 10,224 Non-interest expense 12,564 826 6,628 20,018 11,354 780 8,127 20,261 Income (loss) before income taxes $ 6,317 $ 417 $ (1,524) $ 5,210 $ 7,514 $ 552 $ (603) $ 7,463 Total Assets $ 2,177,145 $ 8,833 $ 44,993 $ 2,230,971 $ 1,858,770 $ 7,927 $ 55,227 $ 1,921,924 Segment Information Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 (Dollars in thousands) Bank Wealth Mortgage Total Bank Wealth Mortgage Total Net interest income $ 51,928 $ (12) $ 85 $ 52,001 $ 50,197 $ 628 $ 785 $ 51,610 Provision for credit losses 2,186 — — 2,186 1,743 — — 1,743 Net interest income after provision 49,742 (12) 85 49,815 48,454 628 785 49,867 Non-interest Income Mortgage banking income 221 — 12,922 13,143 394 — 20,973 21,367 Wealth management income — 3,689 — 3,689 — 3,672 — 3,672 SBA loan income 3,463 — — 3,463 3,946 — — 3,946 Net change in fair values 30 — (574) (544) 151 — (4,457) (4,306) Net gain on hedging activity — — 81 81 — — 4,941 4,941 Other 1,982 — 2,034 4,016 1,776 (1) 2,333 4,108 Non-interest income 5,696 3,689 14,463 23,848 6,267 3,671 23,790 33,728 Non-interest expense 35,608 2,704 19,110 57,422 32,186 2,480 26,734 61,400 Income (loss) before income taxes $ 19,830 $ 973 $ (4,562) $ 16,241 $ 22,535 $ 1,819 $ (2,159) $ 22,195 Total Assets $ 2,177,145 $ 8,833 $ 44,993 $ 2,230,971 $ 1,858,770 $ 7,927 $ 55,227 $ 1,921,924

Subordinated Debentures (Tables

Subordinated Debentures (Tables)	9 Months Ended
	Sep. 30, 2023
Subordinated Borrowings [Abstract]
Schedule of Subordinated Borrowing	The following table presents subordinated debentures at the dates indicated: (dollars in thousands) Maturity Interest September 30, December 31, 2023 Debentures 8/31/2033 8.00% $ 9,740 $ — 2019 Debentures 12/30/2029 5.38% 40,000 40,000 2013 Debentures 12/31/2028 6.50% 596 653 2011 Debentures 12/31/2026 6.00% 463 463 2008 Debentures 12/18/2023 6.00% 56 56 Debt Origination Costs (776) (826) Total Subordinated Debentures $ 50,079 $ 40,346

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Narrative (Details) $ / shares in Units, $ in Thousands		Feb. 28, 2023 $ / shares	Sep. 30, 2023 USD ($) $ / shares	Jun. 30, 2023 USD ($)	Jan. 01, 2023 USD ($)	Dec. 31, 2022 USD ($) $ / shares		Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stock split, conversion ratio		2
Common stock, par value (in dollars per share) | $ / shares		$ 1	$ 1			$ 1
Investment in equity securities			$ 2,019			$ 2,086
Off balance sheet, credit losses			1,000			173
Equity, decrease to retained earnings			155,114	$ 153,962		153,280		$ 151,161	$ 156,087	$ 165,360
Post-tax impacts for loans, net of fees and costs			1,865,946			1,724,854
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity, decrease to retained earnings			$ 102,043	$ 99,434		95,815		$ 92,405	$ 87,815	$ 84,916
Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity, decrease to retained earnings	[1]					(2,228)
Post-tax impacts for loans, net of fees and costs					$ (1,200)
Unfunded loan commitments					(974)
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity, decrease to retained earnings					$ (2,200)	$ (2,228)	[1]
[1]See Note 1, "Summary of Significant Accounting Policies - Pronouncements Adopted in 2023" for additional information.

Earnings per Common Share (Deta

Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator for earnings per share:
Net income available to common stockholders	$ 4,005	$ 5,798	$ 12,673	$ 17,268
Denominators for earnings per share:
Weighted average shares outstanding (in shares)	11,228	11,936	11,307	12,076
Average unearned ESOP shares (in shares)	(170)	(200)	(178)	(148)
Basic weighted averages shares outstanding (in shares)	11,058	11,736	11,129	11,928
Dilutive effects of assumed exercises of stock options (in shares)	119	232	149	274
Dilutive effects of SERP shares (in shares)	186	150	171	142
Diluted weighted averages shares outstanding (in shares)	11,363	12,118	11,449	12,344
Basic earnings per share (in USD per share)	$ 0.36	$ 0.49	$ 1.14	$ 1.45
Diluted earnings per share (in USD per share)	$ 0.35	$ 0.48	$ 1.11	$ 1.40
Antidilutive shares excluded from computation of average dilutive earnings per share (in shares)	490	474	490	472

Securities - Amortized cost and

Securities - Amortized cost and fair value (Details) $ in Thousands	Sep. 30, 2023 USD ($) security	Dec. 31, 2022 USD ($) security
Securities available-for-sale:
Securities available-for-sale, amortized cost	$ 138,014	$ 148,976
Gross unrealized gains	99	59
Gross unrealized losses	(15,895)	(13,689)
Allowance for Credit Losses	0
Debt securities, fair value	$ 122,218	$ 135,346
# of Securities in unrealized loss position | security	134	135
Securities held to maturity:
Amortized cost	$ 36,232	$ 37,479
Gross unrealized gains	0
Gross unrealized losses	(5,567)	(4,394)
Allowance for Credit Losses	0
Fair value	$ 30,665	33,085
# of Securities in unrealized loss position | security	24
U.S. asset backed securities
Securities available-for-sale:
Securities available-for-sale, amortized cost	$ 11,580	15,581
Gross unrealized gains	98	14
Gross unrealized losses	(202)	(314)
Allowance for Credit Losses	0
Debt securities, fair value	$ 11,476	$ 15,281
# of Securities in unrealized loss position | security	9	12
U.S. government agency MBS
Securities available-for-sale:
Securities available-for-sale, amortized cost	$ 11,744	$ 12,272
Gross unrealized gains	0	5
Gross unrealized losses	(610)	(538)
Allowance for Credit Losses	0
Debt securities, fair value	$ 11,134	$ 11,739
# of Securities in unrealized loss position | security	13	12
U.S. government agency CMO
Securities available-for-sale:
Securities available-for-sale, amortized cost	$ 22,226	$ 25,520
Gross unrealized gains	0	40
Gross unrealized losses	(2,854)	(2,242)
Allowance for Credit Losses	0
Debt securities, fair value	$ 19,372	$ 23,318
# of Securities in unrealized loss position | security	30	29
State and municipal securities
Securities available-for-sale:
Securities available-for-sale, amortized cost	$ 40,275	$ 44,700
Gross unrealized gains	0	0
Gross unrealized losses	(6,890)	(5,862)
Allowance for Credit Losses	0
Debt securities, fair value	$ 33,385	$ 38,838
# of Securities in unrealized loss position | security	31	34
Securities held to maturity:
Amortized cost	$ 36,232	$ 37,479
Gross unrealized gains	0	0
Gross unrealized losses	(5,567)	(4,394)
Allowance for Credit Losses	0
Fair value	$ 30,665	$ 33,085
# of Securities in unrealized loss position | security	24	25
U.S. Treasuries
Securities available-for-sale:
Securities available-for-sale, amortized cost	$ 32,982	$ 32,980
Gross unrealized gains	0	0
Gross unrealized losses	(3,453)	(3,457)
Allowance for Credit Losses	0
Debt securities, fair value	$ 29,529	$ 29,523
# of Securities in unrealized loss position | security	25	25
Non-U.S. government agency CMO
Securities available-for-sale:
Securities available-for-sale, amortized cost	$ 11,007	$ 9,722
Gross unrealized gains	1	0
Gross unrealized losses	(788)	(633)
Allowance for Credit Losses	0
Debt securities, fair value	$ 10,220	$ 9,089
# of Securities in unrealized loss position | security	13	11
Corporate bonds
Securities available-for-sale:
Securities available-for-sale, amortized cost	$ 8,200	$ 8,201
Gross unrealized gains	0	0
Gross unrealized losses	(1,098)	(643)
Allowance for Credit Losses	0
Debt securities, fair value	$ 7,102	$ 7,558
# of Securities in unrealized loss position | security	13	12

Securities - Additional Informa

Securities - Additional Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($) security	Dec. 31, 2022 USD ($)
Securities
Number of securities deemed other-than-temporarily impaired | security	0
Debt securities, fair value	$ 122,218	$ 135,346
Asset Pledged as Collateral
Securities
Debt securities, fair value	$ 51,800	$ 78,400

Securities - Continuous Unreali

Securities - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Activity in available-for-sale securities:
Less than 12 Months, Fair Value	$ 11,301	$ 45,243
12 Months or More, Fair Value	106,684	80,226
Total Fair Value	117,985	125,469
Less than 12 Months, Unrealized Losses	(223)	(2,849)
12 Months or More, Unrealized Losses	(15,672)	(10,840)
Total Unrealized Losses	(15,895)	(13,689)
Debt Securities, Held-to-Maturity, Maturity [Abstract]
Less than 12 Months, Fair Value	2,966	10,130
12 Months or More, Fair Value	27,245	22,543
Total Fair Value	30,211	32,673
Less than 12 Months, Unrecognized Loss	(155)	(364)
12 Months or More, Unrecognized Loss	(5,412)	(4,030)
Total securities held-to-maturity	(5,567)	(4,394)
U.S. asset backed securities
Activity in available-for-sale securities:
Less than 12 Months, Fair Value	1,345	6,531
12 Months or More, Fair Value	6,489	4,863
Total Fair Value	7,834	11,394
Less than 12 Months, Unrealized Losses	0	(80)
12 Months or More, Unrealized Losses	(202)	(234)
Total Unrealized Losses	(202)	(314)
U.S. government agency MBS
Activity in available-for-sale securities:
Less than 12 Months, Fair Value	3,092	6,022
12 Months or More, Fair Value	8,042	4,637
Total Fair Value	11,134	10,659
Less than 12 Months, Unrealized Losses	(32)	(230)
12 Months or More, Unrealized Losses	(578)	(308)
Total Unrealized Losses	(610)	(538)
U.S. government agency CMO
Activity in available-for-sale securities:
Less than 12 Months, Fair Value	2,728	9,859
12 Months or More, Fair Value	16,644	9,549
Total Fair Value	19,372	19,408
Less than 12 Months, Unrealized Losses	(76)	(821)
12 Months or More, Unrealized Losses	(2,778)	(1,421)
Total Unrealized Losses	(2,854)	(2,242)
State and municipal securities
Activity in available-for-sale securities:
Less than 12 Months, Fair Value	0	7,487
12 Months or More, Fair Value	33,385	31,351
Total Fair Value	33,385	38,838
Less than 12 Months, Unrealized Losses	0	(726)
12 Months or More, Unrealized Losses	(6,890)	(5,136)
Total Unrealized Losses	(6,890)	(5,862)
Debt Securities, Held-to-Maturity, Maturity [Abstract]
Less than 12 Months, Fair Value	2,966	10,130
12 Months or More, Fair Value	27,245	22,543
Total Fair Value	30,211	32,673
Less than 12 Months, Unrecognized Loss	(155)	(364)
12 Months or More, Unrecognized Loss	(5,412)	(4,030)
Total securities held-to-maturity	(5,567)	(4,394)
U.S. Treasuries
Activity in available-for-sale securities:
Less than 12 Months, Fair Value	0	1,902
12 Months or More, Fair Value	29,529	27,622
Total Fair Value	29,529	29,524
Less than 12 Months, Unrealized Losses	0	(97)
12 Months or More, Unrealized Losses	(3,453)	(3,360)
Total Unrealized Losses	(3,453)	(3,457)
Non-U.S. government agency CMO
Activity in available-for-sale securities:
Less than 12 Months, Fair Value	3,229	8,423
12 Months or More, Fair Value	6,400	666
Total Fair Value	9,629	9,089
Less than 12 Months, Unrealized Losses	(22)	(464)
12 Months or More, Unrealized Losses	(766)	(169)
Total Unrealized Losses	(788)	(633)
Corporate bonds
Activity in available-for-sale securities:
Less than 12 Months, Fair Value	907	5,019
12 Months or More, Fair Value	6,195	1,538
Total Fair Value	7,102	6,557
Less than 12 Months, Unrealized Losses	(93)	(431)
12 Months or More, Unrealized Losses	(1,005)	(212)
Total Unrealized Losses	$ (1,098)	$ (643)

Securities - Contractual Maturi

Securities - Contractual Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Contractual Maturities, Available-for-sale, Amortized Cost
Due in one year or less	$ 0	$ 0
Due after one year through five years	30,793	18,865
Due after five years through ten years	19,161	28,647
Due after ten years	43,083	53,950
Subtotal	93,037	101,462
Mortgage-related securities	44,977	47,514
Securities available-for-sale, amortized cost	138,014	148,976
Contractual Maturities, Available-for-sale, Fair Value
Due in one year or less	0	0
Due after one year through five years	27,666	17,289
Due after five years through ten years	17,047	25,459
Due after ten years	36,780	48,453
Subtotal	81,493	91,201
Mortgage-related securities	40,725	44,145
Fair value	122,218	135,346
Contractual Maturities, Held-to-maturity, Amortized Cost
Due in one year or less	0	0
Due after one year through five years	4,226	4,275
Due after five years through ten years	2,901	2,998
Due after ten years	29,105	30,206
Subtotal	36,232	37,479
Mortgage-related securities	0	0
Amortized cost	36,232	37,479
Contractual Maturities, Held-to-maturity, Fair Value
Due in one year or less	0	0
Due after one year through five years	4,147	4,238
Due after five years through ten years	2,326	2,683
Due after ten years	24,192	26,164
Subtotal	30,665	33,085
Mortgage-related securities	0	0
Total	$ 30,665	$ 33,085

Securities - Sale of Investment

Securities - Sale of Investment Securities, Available for Sale (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Proceeds from sale of investment securities	$ 155	$ 0	$ 13,514	$ 0
Gross gain on sale of available for sale investments	0	0	0	0
Gross loss on sale of available for sale investments	$ 3	$ 0	$ 58	$ 0

Loans and Other Finance Recei_3

Loans and Other Finance Receivables - Loans outstanding by category (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Loans Receivable
Total loans	$ 1,883,424	$ 1,735,598
Residential mortgage real estate loans accounted under fair value option, at fair value	13,231	14,502
Residential mortgage real estate loans accounted under fair value option, at amortized cost	16,508	16,930
Unearned lease income included in leases, net	(22,385)	(25,715)
Unamortized net deferred loan origination costs	2,205	8,084
Real estate loans:
Loans Receivable
Total loans	1,302,901	1,118,591
Real estate loans: | Commercial mortgage
Loans Receivable
Total loans	696,124	565,400
Real estate loans: | Home equity lines and loans
Loans Receivable
Total loans	73,844	59,399
Real estate loans: | Residential mortgage
Loans Receivable
Total loans	256,343	221,837
Real estate loans: | Construction
Loans Receivable
Total loans	276,590	271,955
Commercial and industrial
Loans Receivable
Total loans	299,861	341,378
Small business loans
Loans Receivable
Total loans	141,265	136,155
Consumer
Loans Receivable
Total loans	434	488
Leases, net
Loans Receivable
Total loans	$ 138,963	$ 138,986

Loans and Other Finance Recei_4

Loans and Other Finance Receivables - Age analysis of past due loans and leases (Details) $ in Thousands	Sep. 30, 2023 USD ($) loan	Dec. 31, 2022 USD ($)
Age Analysis of Past Due Loans and Leases
Total loans	$ 1,883,424	$ 1,735,598
Total Accruing Loans and leases	1,854,313	1,714,362
Nonaccrual loans and leases	$ 29,111	$ 21,236
% Delinquent	2.10%	1.67%
Residential mortgage real estate loans accounted under fair value option, at fair value	$ 13,231	$ 14,502
Home equity lines and loans
Age Analysis of Past Due Loans and Leases
Nonaccrual loans and leases	929
Residential mortgage
Age Analysis of Past Due Loans and Leases
Nonaccrual loans and leases	3,097
Construction
Age Analysis of Past Due Loans and Leases
Nonaccrual loans and leases	1,206
Commercial and industrial
Age Analysis of Past Due Loans and Leases
Total loans	299,861	341,378
Total Accruing Loans and leases	284,286	328,831
Nonaccrual loans and leases	$ 15,575	$ 12,547
% Delinquent	5.19%	3.70%
Small business loans
Age Analysis of Past Due Loans and Leases
Total loans	$ 141,265	$ 136,155
Total Accruing Loans and leases	134,028	131,690
Nonaccrual loans and leases	$ 7,237	$ 4,465
% Delinquent	6.43%	3.97%
Leases, net
Age Analysis of Past Due Loans and Leases
Total loans	$ 138,963	$ 138,986
Total Accruing Loans and leases	137,896	138,084
Nonaccrual loans and leases	$ 1,067	$ 902
% Delinquent	2.46%	1.49%
Real estate loans:
Age Analysis of Past Due Loans and Leases
Total loans	$ 1,302,901	$ 1,118,591
Real estate loans: | Commercial mortgage
Age Analysis of Past Due Loans and Leases
Total loans	696,124	565,400
Total Accruing Loans and leases	696,124	565,260
Nonaccrual loans and leases	$ 0	$ 140
% Delinquent	0.08%	0.02%
Real estate loans: | Home equity lines and loans
Age Analysis of Past Due Loans and Leases
Total loans	$ 73,844	$ 59,399
Total Accruing Loans and leases	72,915	58,302
Nonaccrual loans and leases	$ 929	$ 1,097
% Delinquent	1.55%	2.09%
Real estate loans: | Residential mortgage
Age Analysis of Past Due Loans and Leases
Total loans	$ 256,343	$ 221,837
Total Accruing Loans and leases	253,246	219,752
Nonaccrual loans and leases	$ 3,097	$ 2,085
% Delinquent	3.36%	2.86%
Real estate loans: | Construction
Age Analysis of Past Due Loans and Leases
Total loans	$ 276,590	$ 271,955
Total Accruing Loans and leases	275,384	271,955
Nonaccrual loans and leases	$ 1,206	$ 0
% Delinquent	0.44%	0.44%
Consumer
Age Analysis of Past Due Loans and Leases
Total loans	$ 434	$ 488
Total Accruing Loans and leases	434	488
Nonaccrual loans and leases	$ 0	$ 0
% Delinquent	0%	0%
Residential mortgage | Residential mortgage
Age Analysis of Past Due Loans and Leases
Residential mortgage real estate loans accounted under fair value option, at fair value	$ 14,403
Number of loans in process of foreclosure | loan	4
Value of loans in process of foreclosure	$ 937
30-89 days past due
Age Analysis of Past Due Loans and Leases
Total loans	10,503	$ 7,827
30-89 days past due | Commercial and industrial
Age Analysis of Past Due Loans and Leases
Total loans	0	101
30-89 days past due | Small business loans
Age Analysis of Past Due Loans and Leases
Total loans	1,842	939
30-89 days past due | Leases, net
Age Analysis of Past Due Loans and Leases
Total loans	2,346	1,173
30-89 days past due | Real estate loans: | Commercial mortgage
Age Analysis of Past Due Loans and Leases
Total loans	574	0
30-89 days past due | Real estate loans: | Home equity lines and loans
Age Analysis of Past Due Loans and Leases
Total loans	216	146
30-89 days past due | Real estate loans: | Residential mortgage
Age Analysis of Past Due Loans and Leases
Total loans	5,525	4,262
30-89 days past due | Real estate loans: | Construction
Age Analysis of Past Due Loans and Leases
Total loans	0	1,206
30-89 days past due | Consumer
Age Analysis of Past Due Loans and Leases
Total loans	0	0
30-89 days past due | Residential mortgage | Residential mortgage
Age Analysis of Past Due Loans and Leases
Residential mortgage real estate loans accounted under fair value option, at fair value	376	184
Financial Asset, Equal to or Greater than 90 Days Past Due
Age Analysis of Past Due Loans and Leases
Total loans	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due | Commercial and industrial
Age Analysis of Past Due Loans and Leases
Total loans	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due | Small business loans
Age Analysis of Past Due Loans and Leases
Total loans	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due | Leases, net
Age Analysis of Past Due Loans and Leases
Total loans	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due | Real estate loans: | Commercial mortgage
Age Analysis of Past Due Loans and Leases
Total loans	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due | Real estate loans: | Home equity lines and loans
Age Analysis of Past Due Loans and Leases
Total loans	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due | Real estate loans: | Residential mortgage
Age Analysis of Past Due Loans and Leases
Total loans	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due | Real estate loans: | Construction
Age Analysis of Past Due Loans and Leases
Total loans	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due | Consumer
Age Analysis of Past Due Loans and Leases
Total loans	0	0
Financial Asset, Past Due
Age Analysis of Past Due Loans and Leases
Total loans	10,503	7,827
Financial Asset, Past Due | Commercial and industrial
Age Analysis of Past Due Loans and Leases
Total loans	0	101
Financial Asset, Past Due | Small business loans
Age Analysis of Past Due Loans and Leases
Total loans	1,842	939
Financial Asset, Past Due | Leases, net
Age Analysis of Past Due Loans and Leases
Total loans	2,346	1,173
Financial Asset, Past Due | Real estate loans: | Commercial mortgage
Age Analysis of Past Due Loans and Leases
Total loans	574	0
Financial Asset, Past Due | Real estate loans: | Home equity lines and loans
Age Analysis of Past Due Loans and Leases
Total loans	216	146
Financial Asset, Past Due | Real estate loans: | Residential mortgage
Age Analysis of Past Due Loans and Leases
Total loans	5,525	4,262
Financial Asset, Past Due | Real estate loans: | Construction
Age Analysis of Past Due Loans and Leases
Total loans	0	1,206
Financial Asset, Past Due | Consumer
Age Analysis of Past Due Loans and Leases
Total loans	0	0
Current
Age Analysis of Past Due Loans and Leases
Total loans	1,843,810	1,706,535
Current | Commercial and industrial
Age Analysis of Past Due Loans and Leases
Total loans	284,286	328,730
Current | Small business loans
Age Analysis of Past Due Loans and Leases
Total loans	132,186	130,751
Current | Leases, net
Age Analysis of Past Due Loans and Leases
Total loans	135,550	136,911
Current | Real estate loans: | Commercial mortgage
Age Analysis of Past Due Loans and Leases
Total loans	695,550	565,260
Current | Real estate loans: | Home equity lines and loans
Age Analysis of Past Due Loans and Leases
Total loans	72,699	58,156
Current | Real estate loans: | Residential mortgage
Age Analysis of Past Due Loans and Leases
Total loans	247,721	215,490
Current | Real estate loans: | Construction
Age Analysis of Past Due Loans and Leases
Total loans	275,384	270,749
Current | Consumer
Age Analysis of Past Due Loans and Leases
Total loans	434	488
Current | Residential mortgage | Residential mortgage
Age Analysis of Past Due Loans and Leases
Residential mortgage real estate loans accounted under fair value option, at fair value	12,108	13,760
Nonaccrual | Residential mortgage | Residential mortgage
Age Analysis of Past Due Loans and Leases
Residential mortgage real estate loans accounted under fair value option, at fair value	$ 747	$ 558

Loans and Other Finance Recei_5

Loans and Other Finance Receivables - Schedule of Financing Receivables, Nonaccrual (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Without ACL	$ 13,102
Nonaccrual With ACL	16,009
Nonaccrual loans and leases	29,111	$ 21,236
Home equity lines and loans
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	929
Residential mortgage
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	3,097
Construction
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	1,206
Real estate loans: | Home equity lines and loans
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Without ACL	929
Nonaccrual With ACL	0
Nonaccrual loans and leases	929	1,097
Real estate loans: | Residential mortgage
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Without ACL	3,097
Nonaccrual With ACL	0
Nonaccrual loans and leases	3,097	2,085
Real estate loans: | Construction
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Without ACL	1,206
Nonaccrual With ACL	0
Nonaccrual loans and leases	1,206	0
Commercial and industrial
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Without ACL	3,346
Nonaccrual With ACL	12,229
Nonaccrual loans and leases	15,575	12,547
Small business loans
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Without ACL	3,457
Nonaccrual With ACL	3,780
Nonaccrual loans and leases	7,237	4,465
Leases, net
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Without ACL	1,067
Nonaccrual With ACL	0
Nonaccrual loans and leases	$ 1,067	$ 902

Loans and Other Finance Recei_6

Loans and Other Finance Receivables - Schedule of Non-Accruing Collateral-Dependent Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	$ 29,111	$ 21,236
Home equity lines and loans
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	929
Residential mortgage
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	3,097
Construction
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	1,206
Commercial and industrial
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	15,575
Small business loans
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	7,237
Leases, net
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	1,067
Real Estate
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	12,472
Real Estate | Home equity lines and loans
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	929
Real Estate | Residential mortgage
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	3,097
Real Estate | Construction
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	1,206
Real Estate | Commercial and industrial
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	1,893
Real Estate | Small business loans
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	5,347
Real Estate | Leases, net
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	0
Equipment and Other
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	16,639
Equipment and Other | Home equity lines and loans
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	0
Equipment and Other | Residential mortgage
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	0
Equipment and Other | Construction
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	0
Equipment and Other | Commercial and industrial
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	13,682
Equipment and Other | Small business loans
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	1,890
Equipment and Other | Leases, net
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans and leases	$ 1,067

Allowance for Credit Losses - R

Allowance for Credit Losses - Roll-forward of allowance by portfolio segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 20,242	$ 18,805	$ 18,828	$ 18,758
Charge-offs	(1,009)	(431)	(3,661)	(1,694)
Recoveries	95	74	308	167
Provision (recovery of provision) for credit losses	355	526	2,612	1,743
Balance at end of period	19,683	18,974	19,683	18,974
Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period			1,596
Commercial mortgage
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	3,249	4,327	4,095	4,950
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (recovery of provision) for credit losses	916	(238)	596	(861)
Balance at end of period	4,165	4,089	4,165	4,089
Commercial mortgage | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period			(526)
Home equity lines and loans
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	790	240	188	224
Charge-offs		(12)	(87)	(12)
Recoveries	2	34	5	42
Provision (recovery of provision) for credit losses	153	(25)	400	(17)
Balance at end of period	945	237	945	237
Home equity lines and loans | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period			439
Residential mortgage
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	1,047	489	948	283
Charge-offs	0	0	0	0
Recoveries	0	0	0	2
Provision (recovery of provision) for credit losses	157	217	239	421
Balance at end of period	1,204	706	1,204	706
Residential mortgage | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period			17
Construction
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	1,294	2,481	3,075	2,042
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (recovery of provision) for credit losses	(453)	378	(471)	817
Balance at end of period	841	2,859	841	2,859
Construction | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period			(1,763)
Commercial and industrial
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	2,241	6,287	4,012	6,533
Charge-offs	(130)	0	(130)	0
Recoveries	1	39	57	58
Provision (recovery of provision) for credit losses	267	(657)	(537)	(922)
Balance at end of period	2,379	5,669	2,379	5,669
Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period			(1,023)
Small business loans
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	6,868	3,681	4,909	3,737
Charge-offs	(272)	0	(598)	0
Recoveries	1	0	1	0
Provision (recovery of provision) for credit losses	(511)	319	664	263
Balance at end of period	6,086	4,000	6,086	4,000
Small business loans | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period			1,110
Consumer
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	0	3	3	3
Charge-offs	(1)	0	(1)	0
Recoveries	1	1	3	3
Provision (recovery of provision) for credit losses	0	(1)	(2)	(3)
Balance at end of period	0	3	0	3
Consumer | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period			(3)
Leases, net
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	4,753	1,297	1,598	986
Charge-offs	(606)	(419)	(2,845)	(1,682)
Recoveries	90	0	242	62
Provision (recovery of provision) for credit losses	(174)	533	1,723	2,045
Balance at end of period	$ 4,063	$ 1,411	4,063	$ 1,411
Leases, net | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period			$ 3,345

Allowance for Credit Losses - P

Allowance for Credit Losses - Provision for credit losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Text Block [Abstract]
Provision (recovery of provision) for credit losses	$ 355	$ 526	$ 2,612	$ 1,743
Recovery of provision for credit losses - unfunded	(273)	0	(426)	0
Provision (recovery of provision) for credit losses	$ 82	$ 526	$ 2,186	$ 1,743

Allowance for Credit Losses - A

Allowance for Credit Losses - Allowance allocated by portfolio segment (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Impaired Loans
Allowance on loans and leases individually evaluated for impairment	$ 2,538		$ 2,225
Allowance on loans and leases collectively evaluated for impairment	17,145		16,603
Total allowance on loans and leases	19,683	$ 20,242	18,828	$ 18,974	$ 18,805	$ 18,758
Carrying value of loans and leases individually evaluated for impairment	28,178		24,178
Carrying value of loans and leases collectively evaluated for impairment	1,842,015		1,696,918
Total on carrying value of loans and leases	1,870,193		1,721,096
Commercial mortgage
Impaired Loans
Allowance on loans and leases individually evaluated for impairment	0		0
Allowance on loans and leases collectively evaluated for impairment	4,165		4,095
Total allowance on loans and leases	4,165	3,249	4,095	4,089	4,327	4,950
Carrying value of loans and leases individually evaluated for impairment	0		2,445
Carrying value of loans and leases collectively evaluated for impairment	696,124		562,955
Total on carrying value of loans and leases	696,124		565,400
Home equity lines and loans
Impaired Loans
Allowance on loans and leases individually evaluated for impairment	0		0
Allowance on loans and leases collectively evaluated for impairment	945		188
Total allowance on loans and leases	945	790	188	237	240	224
Carrying value of loans and leases individually evaluated for impairment	929		1,097
Carrying value of loans and leases collectively evaluated for impairment	72,915		58,302
Total on carrying value of loans and leases	73,844		59,399
Residential mortgage
Impaired Loans
Allowance on loans and leases individually evaluated for impairment	0		0
Allowance on loans and leases collectively evaluated for impairment	1,204		948
Total allowance on loans and leases	1,204	1,047	948	706	489	283
Carrying value of loans and leases individually evaluated for impairment	2,164		1,454
Carrying value of loans and leases collectively evaluated for impairment	240,948		205,881
Total on carrying value of loans and leases	243,112		207,335
Construction
Impaired Loans
Allowance on loans and leases individually evaluated for impairment	0		0
Allowance on loans and leases collectively evaluated for impairment	841		3,075
Total allowance on loans and leases	841	1,294	3,075	2,859	2,481	2,042
Carrying value of loans and leases individually evaluated for impairment	1,206		1,206
Carrying value of loans and leases collectively evaluated for impairment	275,384		270,749
Total on carrying value of loans and leases	276,590		271,955
Commercial and industrial
Impaired Loans
Allowance on loans and leases individually evaluated for impairment	1,145		776
Allowance on loans and leases collectively evaluated for impairment	1,234		3,236
Total allowance on loans and leases	2,379	2,241	4,012	5,669	6,287	6,533
Carrying value of loans and leases individually evaluated for impairment	15,575		12,547
Carrying value of loans and leases collectively evaluated for impairment	284,286		328,831
Total on carrying value of loans and leases	299,861		341,378
Small business loans
Impaired Loans
Allowance on loans and leases individually evaluated for impairment	1,393		1,449
Allowance on loans and leases collectively evaluated for impairment	4,693		3,460
Total allowance on loans and leases	6,086	6,868	4,909	4,000	3,681	3,737
Carrying value of loans and leases individually evaluated for impairment	7,237		4,527
Carrying value of loans and leases collectively evaluated for impairment	134,028		131,628
Total on carrying value of loans and leases	141,265		136,155
Consumer
Impaired Loans
Allowance on loans and leases individually evaluated for impairment	0		0
Allowance on loans and leases collectively evaluated for impairment	0		3
Total allowance on loans and leases	0	0	3	3	3	3
Carrying value of loans and leases individually evaluated for impairment	0		0
Carrying value of loans and leases collectively evaluated for impairment	434		488
Total on carrying value of loans and leases	434		488
Leases, net
Impaired Loans
Allowance on loans and leases individually evaluated for impairment	0		0
Allowance on loans and leases collectively evaluated for impairment	4,063		1,598
Total allowance on loans and leases	4,063	$ 4,753	1,598	$ 1,411	$ 1,297	$ 986
Carrying value of loans and leases individually evaluated for impairment	1,067		902
Carrying value of loans and leases collectively evaluated for impairment	137,896		138,084
Total on carrying value of loans and leases	$ 138,963		$ 138,986

Allowance for Credit Losses - C

Allowance for Credit Losses - Carrying value based on credit quality indicators (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($) loan	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) loan	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Loans and Leases by Credit Ratings
Loans, net of fees and costs	$ 1,885,629		$ 1,885,629		$ 1,743,682
Current period gross charge-offs	(1,009)	$ (431)	(3,661)	$ (1,694)
Residential mortgage real estate loans accounted under fair value option, at fair value	13,231		13,231		14,502
Total loans	1,883,424		1,883,424		1,735,598
Evaluated by performance status
Loans and Leases by Credit Ratings
2023	68,277		68,277
2023, Writeoff			(3)
2022	223,516		223,516
2022, Writeoff			(1,439)
2021	58,600		58,600
2021, Writeoff			(1,268)
2020	19,697		19,697
2020, Writeoff			(190)
2019	2,784		2,784
2019, Writeoff			0
Prior	15,753		15,753
Prior, Writeoff			(33)
Revolving Loans	67,726		67,726
Revolving Loans, Writeoff			0
Loans, net of fees and costs	456,353		456,353
Current period gross charge-offs			(2,933)
Total loans					346,809
Performing
Loans and Leases by Credit Ratings
2023	68,277		68,277
2022	223,017		223,017
2021	58,215		58,215
2020	19,514		19,514
2019	2,784		2,784
Prior	14,031		14,031
Revolving Loans	66,797		66,797
Loans, net of fees and costs	452,635		452,635
Total loans					344,453
Nonperforming
Loans and Leases by Credit Ratings
2023	0		0
2022	499		499
2021	385		385
2020	183		183
2019	0		0
Prior	1,722		1,722
Revolving Loans	929		929
Loans, net of fees and costs	3,718		3,718
Total loans					2,356
Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
2023	194,931		194,931
2023, Writeoff			(73)
2022	305,357		305,357
2022, Writeoff			(55)
2021	266,467		266,467
2021, Writeoff			0
2020	167,514		167,514
2020, Writeoff			(413)
2019	79,912		79,912
2019, Writeoff			(187)
Prior	210,747		210,747
Prior, Writeoff			0
Revolving Loans Converted to Term Loans	1,301		1,301
Revolving Loans Converted to Term Loans, Writeoff			0
Revolving Loans	187,611		187,611
Revolving Loans, Writeoff			0
Loans, net of fees and costs	1,413,840		1,413,840
Current period gross charge-offs			(728)
Total loans					1,374,287
Pass/Watch
Loans and Leases by Credit Ratings
2023	193,731		193,731
2022	295,293		295,293
2021	256,865		256,865
2020	165,600		165,600
2019	67,272		67,272
Prior	176,865		176,865
Revolving Loans Converted to Term Loans	634		634
Revolving Loans	164,077		164,077
Loans, net of fees and costs	1,320,337		1,320,337
Total loans					1,281,804
Special Mention
Loans and Leases by Credit Ratings
2023	1,000		1,000
2022	9,391		9,391
2021	1,084		1,084
2020	0		0
2019	9,802		9,802
Prior	20,659		20,659
Revolving Loans Converted to Term Loans	667		667
Revolving Loans	5,053		5,053
Loans, net of fees and costs	47,656		47,656
Total loans					43,766
Substandard
Loans and Leases by Credit Ratings
2023	200		200
2022	673		673
2021	8,518		8,518
2020	1,914		1,914
2019	2,838		2,838
Prior	13,223		13,223
Revolving Loans Converted to Term Loans	0		0
Revolving Loans	18,481		18,481
Loans, net of fees and costs	45,847		45,847
Total loans					48,717
Doubtful
Loans and Leases by Credit Ratings
Total loans					0
Commercial mortgage
Loans and Leases by Credit Ratings
2023	82,514		82,514
2023, Writeoff			0
2022	142,534		142,534
2022, Writeoff			0
2021	162,537		162,537
2021, Writeoff			0
2020	96,103		96,103
2020, Writeoff			0
2019	62,088		62,088
2019, Writeoff			0
Prior	148,416		148,416
Prior, Writeoff			0
Revolving Loans Converted to Term Loans	1,178		1,178
Revolving Loans Converted to Term Loans, Writeoff			0
Revolving Loans	754		754
Revolving Loans, Writeoff			0
Loans, net of fees and costs	696,124		696,124
Current period gross charge-offs	0	0	0	0
Commercial mortgage | Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
Total loans					565,400
Commercial mortgage | Pass/Watch
Loans and Leases by Credit Ratings
2023	82,314		82,314
2022	137,909		137,909
2021	161,963		161,963
2020	96,103		96,103
2019	51,149		51,149
Prior	136,069		136,069
Revolving Loans Converted to Term Loans	511		511
Revolving Loans	426		426
Loans, net of fees and costs	666,444		666,444
Total loans					536,705
Commercial mortgage | Special Mention
Loans and Leases by Credit Ratings
2023	0		0
2022	4,625		4,625
2021	0		0
2020	0		0
2019	9,291		9,291
Prior	10,060		10,060
Revolving Loans Converted to Term Loans	667		667
Revolving Loans	0		0
Loans, net of fees and costs	24,643		24,643
Total loans					25,309
Commercial mortgage | Substandard
Loans and Leases by Credit Ratings
2023	200		200
2022	0		0
2021	574		574
2020	0		0
2019	1,648		1,648
Prior	2,287		2,287
Revolving Loans Converted to Term Loans	0		0
Revolving Loans	328		328
Loans, net of fees and costs	5,037		5,037
Total loans					3,386
Commercial mortgage | Doubtful
Loans and Leases by Credit Ratings
Total loans					0
Construction
Loans and Leases by Credit Ratings
2023	53,495		53,495
2023, Writeoff			0
2022	101,776		101,776
2022, Writeoff			0
2021	30,199		30,199
2021, Writeoff			0
2020	47,458		47,458
2020, Writeoff			0
2019	5,059		5,059
2019, Writeoff			0
Prior	12,260		12,260
Prior, Writeoff			0
Revolving Loans Converted to Term Loans	123		123
Revolving Loans Converted to Term Loans, Writeoff			0
Revolving Loans	26,220		26,220
Revolving Loans, Writeoff			0
Loans, net of fees and costs	276,590		276,590
Current period gross charge-offs	0	0	0	0
Construction | Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
Total loans					271,955
Construction | Pass/Watch
Loans and Leases by Credit Ratings
2023	53,495		53,495
2022	101,776		101,776
2021	29,115		29,115
2020	47,458		47,458
2019	4,548		4,548
Prior	2,120		2,120
Revolving Loans Converted to Term Loans	123		123
Revolving Loans	24,083		24,083
Loans, net of fees and costs	262,718		262,718
Total loans					260,085
Construction | Special Mention
Loans and Leases by Credit Ratings
2023	0		0
2022	0		0
2021	1,084		1,084
2020	0		0
2019	511		511
Prior	8,934		8,934
Revolving Loans Converted to Term Loans	0		0
Revolving Loans	2,137		2,137
Loans, net of fees and costs	12,666		12,666
Total loans					11,870
Construction | Substandard
Loans and Leases by Credit Ratings
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	1,206		1,206
Revolving Loans Converted to Term Loans	0		0
Revolving Loans	0		0
Loans, net of fees and costs	1,206		1,206
Total loans					0
Construction | Doubtful
Loans and Leases by Credit Ratings
Total loans					0
Commercial and industrial
Loans and Leases by Credit Ratings
2023	19,566		19,566
2023, Writeoff			(73)
2022	40,397		40,397
2022, Writeoff			(55)
2021	29,640		29,640
2021, Writeoff			0
2020	8,891		8,891
2020, Writeoff			(2)
2019	4,879		4,879
2019, Writeoff			0
Prior	49,053		49,053
Prior, Writeoff			0
Revolving Loans Converted to Term Loans	0		0
Revolving Loans Converted to Term Loans, Writeoff			0
Revolving Loans	147,435		147,435
Revolving Loans, Writeoff			0
Loans, net of fees and costs	299,861		299,861
Current period gross charge-offs	(130)	0	(130)	0
Total loans	299,861		299,861		341,378
Commercial and industrial | Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
Total loans					341,378
Commercial and industrial | Pass/Watch
Loans and Leases by Credit Ratings
2023	18,566		18,566
2022	35,631		35,631
2021	26,734		26,734
2020	8,891		8,891
2019	4,579		4,579
Prior	37,658		37,658
Revolving Loans Converted to Term Loans	0		0
Revolving Loans	126,466		126,466
Loans, net of fees and costs	258,525		258,525
Total loans					295,502
Commercial and industrial | Special Mention
Loans and Leases by Credit Ratings
2023	1,000		1,000
2022	4,766		4,766
2021	0		0
2020	0		0
2019	0		0
Prior	1,665		1,665
Revolving Loans Converted to Term Loans	0		0
Revolving Loans	2,816		2,816
Loans, net of fees and costs	10,247		10,247
Total loans					6,587
Commercial and industrial | Substandard
Loans and Leases by Credit Ratings
2023	0		0
2022	0		0
2021	2,906		2,906
2020	0		0
2019	300		300
Prior	9,730		9,730
Revolving Loans Converted to Term Loans	0		0
Revolving Loans	18,153		18,153
Loans, net of fees and costs	31,089		31,089
Total loans	$ 31,100		31,100		39,289
Decrease in financing receivable			8,200
Decrease in finance receivable, credit payoff			$ 3,000
Number of loan relationships with no specific industry concentration | loan	15		15
Deferrals that became non performing loans	$ 11,000		$ 11,000
Commercial and industrial | Doubtful
Loans and Leases by Credit Ratings
Total loans					0
Small business loans
Loans and Leases by Credit Ratings
2023	39,356		39,356
2023, Writeoff			0
2022	20,650		20,650
2022, Writeoff			0
2021	44,091		44,091
2021, Writeoff			0
2020	15,062		15,062
2020, Writeoff			(411)
2019	7,886		7,886
2019, Writeoff			(187)
Prior	1,018		1,018
Prior, Writeoff			0
Revolving Loans Converted to Term Loans	0		0
Revolving Loans Converted to Term Loans, Writeoff			0
Revolving Loans	13,202		13,202
Revolving Loans, Writeoff			0
Loans, net of fees and costs	141,265		141,265
Current period gross charge-offs	(272)	0	(598)	0
Total loans	141,265		141,265		136,155
Small business loans | Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
Total loans					136,155
Small business loans | Pass/Watch
Loans and Leases by Credit Ratings
2023	39,356		39,356
2022	19,977		19,977
2021	39,053		39,053
2020	13,148		13,148
2019	6,996		6,996
Prior	1,018		1,018
Revolving Loans Converted to Term Loans	0		0
Revolving Loans	13,102		13,102
Loans, net of fees and costs	132,650		132,650
Total loans					131,690
Small business loans | Special Mention
Loans and Leases by Credit Ratings
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Converted to Term Loans	0		0
Revolving Loans	100		100
Loans, net of fees and costs	100		100
Total loans					0
Small business loans | Substandard
Loans and Leases by Credit Ratings
2023	0		0
2022	673		673
2021	5,038		5,038
2020	1,914		1,914
2019	890		890
Prior	0		0
Revolving Loans Converted to Term Loans	0		0
Revolving Loans	0		0
Loans, net of fees and costs	8,515		8,515
Total loans					4,465
Small business loans | Doubtful
Loans and Leases by Credit Ratings
Total loans					0
Leases, net
Loans and Leases by Credit Ratings
2023	25,583		25,583
2023, Writeoff			(3)
2022	65,080		65,080
2022, Writeoff			(1,438)
2021	36,315		36,315
2021, Writeoff			(1,268)
2020	11,985		11,985
2020, Writeoff			(136)
2019	0		0
2019, Writeoff			0
Prior	0		0
Prior, Writeoff			0
Revolving Loans	0		0
Revolving Loans, Writeoff			0
Loans, net of fees and costs	138,963		138,963
Current period gross charge-offs	(606)	(419)	(2,845)	(1,682)
Total loans	138,963		138,963		138,986
Leases, net | Evaluated by performance status
Loans and Leases by Credit Ratings
Total loans					138,986
Leases, net | Performing
Loans and Leases by Credit Ratings
2023	25,583		25,583
2022	64,581		64,581
2021	35,930		35,930
2020	11,802		11,802
2019	0		0
Prior	0		0
Revolving Loans	0		0
Loans, net of fees and costs	137,896		137,896
Total loans					138,084
Leases, net | Nonperforming
Loans and Leases by Credit Ratings
2023	0		0
2022	499		499
2021	385		385
2020	183		183
2019	0		0
Prior	0		0
Revolving Loans	0		0
Loans, net of fees and costs	1,067		1,067
Total loans					902
Home equity lines and loans
Loans and Leases by Credit Ratings
2023	52		52
2023, Writeoff			0
2022	801		801
2022, Writeoff			0
2021	318		318
2021, Writeoff			0
2020	359		359
2020, Writeoff			(54)
2019	2,289		2,289
2019, Writeoff			0
Prior	2,375		2,375
Prior, Writeoff			(33)
Revolving Loans	67,650		67,650
Revolving Loans, Writeoff			0
Loans, net of fees and costs	73,844		73,844
Current period gross charge-offs		(12)	(87)	(12)
Home equity lines and loans | Performing
Loans and Leases by Credit Ratings
2023	52		52
2022	801		801
2021	318		318
2020	359		359
2019	2,289		2,289
Prior	2,375		2,375
Revolving Loans	66,721		66,721
Loans, net of fees and costs	72,915		72,915
Home equity lines and loans | Nonperforming
Loans and Leases by Credit Ratings
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans	929		929
Loans, net of fees and costs	929		929
Home equity lines and loans | Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
Total loans					59,399
Home equity lines and loans | Pass/Watch
Loans and Leases by Credit Ratings
Total loans					57,822
Home equity lines and loans | Special Mention
Loans and Leases by Credit Ratings
Total loans					0
Home equity lines and loans | Substandard
Loans and Leases by Credit Ratings
Total loans					1,577
Home equity lines and loans | Doubtful
Loans and Leases by Credit Ratings
Total loans					0
Residential mortgage
Loans and Leases by Credit Ratings
2023	42,601		42,601
2023, Writeoff			0
2022	157,600		157,600
2022, Writeoff			0
2021	21,967		21,967
2021, Writeoff			0
2020	7,353		7,353
2020, Writeoff			0
2019	461		461
2019, Writeoff			0
Prior	13,130		13,130
Prior, Writeoff			0
Revolving Loans	0		0
Revolving Loans, Writeoff			0
Loans, net of fees and costs	243,112		243,112
Current period gross charge-offs	0	0	0	0
Residential mortgage | Residential mortgage
Loans and Leases by Credit Ratings
Residential mortgage real estate loans accounted under fair value option, at fair value	14,403		14,403
Residential mortgage | Evaluated by performance status
Loans and Leases by Credit Ratings
Total loans					207,335
Residential mortgage | Performing
Loans and Leases by Credit Ratings
2023	42,601		42,601
2022	157,600		157,600
2021	21,967		21,967
2020	7,353		7,353
2019	461		461
Prior	11,408		11,408
Revolving Loans	0		0
Loans, net of fees and costs	241,390		241,390
Total loans					205,881
Residential mortgage | Nonperforming
Loans and Leases by Credit Ratings
2023	0		0
2022	0		0
2021	0		0
2020
2019	0		0
Prior	1,722		1,722
Revolving Loans	0		0
Loans, net of fees and costs	1,722		1,722
Residential mortgage real estate loans accounted under fair value option, at fair value	550		550		558
Total loans					1,454
Consumer
Loans and Leases by Credit Ratings
2023	41		41
2023, Writeoff			0
2022	35		35
2022, Writeoff			(1)
2021	0		0
2021, Writeoff			0
2020	0		0
2020, Writeoff			0
2019	34		34
2019, Writeoff			0
Prior	248		248
Prior, Writeoff			0
Revolving Loans	76		76
Revolving Loans, Writeoff			0
Loans, net of fees and costs	434		434
Current period gross charge-offs	(1)	$ 0	(1)	$ 0
Total loans	434		434		488
Consumer | Evaluated by performance status
Loans and Leases by Credit Ratings
Total loans					488
Consumer | Performing
Loans and Leases by Credit Ratings
2023	41		41
2022	35		35
2021	0		0
2020	0		0
2019	34		34
Prior	248		248
Revolving Loans	76		76
Loans, net of fees and costs	434		434
Total loans					488
Consumer | Nonperforming
Loans and Leases by Credit Ratings
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans	0		0
Loans, net of fees and costs	$ 0		$ 0
Total loans					$ 0

Allowance for Credit Losses -_2

Allowance for Credit Losses - Carrying value based on performance status (Details) $ in Thousands	Sep. 30, 2023 USD ($) loan	Dec. 31, 2022 USD ($) loan
Loans and Leases by Credit Ratings
Total loans	$ 1,883,424	$ 1,735,598
Loans at fair value	13,231	14,502
Evaluated by performance status
Loans and Leases by Credit Ratings
Total loans		346,809
Performing
Loans and Leases by Credit Ratings
Total loans		344,453
Nonperforming
Loans and Leases by Credit Ratings
Total loans		2,356
Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
Total loans		1,374,287
Pass/Watch
Loans and Leases by Credit Ratings
Total loans		1,281,804
Special Mention
Loans and Leases by Credit Ratings
Total loans		43,766
Substandard
Loans and Leases by Credit Ratings
Total loans		48,717
Doubtful
Loans and Leases by Credit Ratings
Total loans		0
Commercial mortgage | Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
Total loans		565,400
Commercial mortgage | Pass/Watch
Loans and Leases by Credit Ratings
Total loans		536,705
Commercial mortgage | Special Mention
Loans and Leases by Credit Ratings
Total loans		25,309
Commercial mortgage | Substandard
Loans and Leases by Credit Ratings
Total loans		3,386
Commercial mortgage | Doubtful
Loans and Leases by Credit Ratings
Total loans		0
Home equity lines and loans | Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
Total loans		59,399
Home equity lines and loans | Pass/Watch
Loans and Leases by Credit Ratings
Total loans		57,822
Home equity lines and loans | Special Mention
Loans and Leases by Credit Ratings
Total loans		0
Home equity lines and loans | Substandard
Loans and Leases by Credit Ratings
Total loans		1,577
Home equity lines and loans | Doubtful
Loans and Leases by Credit Ratings
Total loans		0
Construction | Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
Total loans		271,955
Construction | Pass/Watch
Loans and Leases by Credit Ratings
Total loans		260,085
Construction | Special Mention
Loans and Leases by Credit Ratings
Total loans		11,870
Construction | Substandard
Loans and Leases by Credit Ratings
Total loans		0
Construction | Doubtful
Loans and Leases by Credit Ratings
Total loans		0
Commercial and industrial
Loans and Leases by Credit Ratings
Total loans	299,861	341,378
Commercial and industrial | Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
Total loans		341,378
Commercial and industrial | Pass/Watch
Loans and Leases by Credit Ratings
Total loans		295,502
Commercial and industrial | Special Mention
Loans and Leases by Credit Ratings
Total loans		6,587
Commercial and industrial | Substandard
Loans and Leases by Credit Ratings
Total loans	31,100	39,289
Commercial and industrial | Doubtful
Loans and Leases by Credit Ratings
Total loans		0
Small business loans
Loans and Leases by Credit Ratings
Total loans	141,265	136,155
Small business loans | Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
Total loans		136,155
Small business loans | Pass/Watch
Loans and Leases by Credit Ratings
Total loans		131,690
Small business loans | Special Mention
Loans and Leases by Credit Ratings
Total loans		0
Small business loans | Substandard
Loans and Leases by Credit Ratings
Total loans		4,465
Small business loans | Doubtful
Loans and Leases by Credit Ratings
Total loans		0
Residential mortgage | Residential mortgage
Loans and Leases by Credit Ratings
Loans at fair value	$ 14,403
Residential mortgage | Evaluated by performance status
Loans and Leases by Credit Ratings
Total loans		207,335
Residential mortgage | Performing
Loans and Leases by Credit Ratings
Total loans		205,881
Residential mortgage | Nonperforming
Loans and Leases by Credit Ratings
Total loans		$ 1,454
Number of loans | loan	4	4
Loans at fair value	$ 550	$ 558
Consumer
Loans and Leases by Credit Ratings
Total loans	434	488
Consumer | Evaluated by performance status
Loans and Leases by Credit Ratings
Total loans		488
Consumer | Performing
Loans and Leases by Credit Ratings
Total loans		488
Consumer | Nonperforming
Loans and Leases by Credit Ratings
Total loans		0
Leases, net
Loans and Leases by Credit Ratings
Total loans	$ 138,963	138,986
Leases, net | Evaluated by performance status
Loans and Leases by Credit Ratings
Total loans		138,986
Leases, net | Performing
Loans and Leases by Credit Ratings
Total loans		138,084
Leases, net | Nonperforming
Loans and Leases by Credit Ratings
Total loans		$ 902

Allowance for Credit Losses - I

Allowance for Credit Losses - Impaired loans (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Dec. 31, 2022
Impaired loans with related allowance:
Impaired financing receivable, with related allowance, recorded investment			$ 14,829
Impaired financing receivable, with related allowance, unpaid principal balance			15,825
Impaired Financing Receivable, Related Allowance			2,225
Impaired loans without related allowance:
Impaired financing receivable, with no related allowance, recorded investment			9,349
Impaired financing receivable, with no related allowance, unpaid principal balance			9,406
Grand Total
Impaired Financing Receivable, Recorded Investment			24,178
Impaired Financing Receivable, Unpaid Principal Balance			25,231
Impaired Financing Receivable, Related Allowance			2,225
Impaired financing receivable, individuals evaluated loans with related allowance, average recorded investment	$ 16,861	$ 17,029
Impaired financing receivable, individuals evaluated loans with related allowance, interest income recognized	0	0
Impaired financing received, individually evaluated loans without related allowance, average recorded investment	9,369	9,457
Impaired financing received, individually evaluated loans without related allowance, interest income recognized	88	364
Impaired financing receivable, average recorded investment	26,230	26,486
Impaired financing receivable, interest income recognized	88	364
Commercial and industrial
Impaired loans with related allowance:
Impaired financing receivable, with related allowance, recorded investment			11,099
Impaired financing receivable, with related allowance, unpaid principal balance			12,095
Impaired Financing Receivable, Related Allowance			776
Impaired loans without related allowance:
Impaired financing receivable, with no related allowance, recorded investment			1,448
Impaired financing receivable, with no related allowance, unpaid principal balance			1,494
Grand Total
Impaired Financing Receivable, Related Allowance			776
Impaired financing receivable, individuals evaluated loans with related allowance, average recorded investment	16,195	16,363
Impaired financing receivable, individuals evaluated loans with related allowance, interest income recognized	0	0
Impaired financing received, individually evaluated loans without related allowance, average recorded investment	286	293
Impaired financing received, individually evaluated loans without related allowance, interest income recognized	0	0
Commercial mortgage
Impaired loans without related allowance:
Impaired financing receivable, with no related allowance, recorded investment			2,445
Impaired financing receivable, with no related allowance, unpaid principal balance			2,456
Grand Total
Impaired financing received, individually evaluated loans without related allowance, average recorded investment	4,212	4,257
Impaired financing received, individually evaluated loans without related allowance, interest income recognized	29	77
Small business loans
Impaired loans with related allowance:
Impaired financing receivable, with related allowance, recorded investment			3,730
Impaired financing receivable, with related allowance, unpaid principal balance			3,730
Impaired Financing Receivable, Related Allowance			1,449
Impaired loans without related allowance:
Impaired financing receivable, with no related allowance, recorded investment			797
Impaired financing receivable, with no related allowance, unpaid principal balance			797
Grand Total
Impaired Financing Receivable, Related Allowance			1,449
Impaired financing receivable, individuals evaluated loans with related allowance, average recorded investment	666	666
Impaired financing receivable, individuals evaluated loans with related allowance, interest income recognized	0	0
Impaired financing received, individually evaluated loans without related allowance, average recorded investment	819	835
Impaired financing received, individually evaluated loans without related allowance, interest income recognized	2	7
Home equity lines and loans
Impaired loans without related allowance:
Impaired financing receivable, with no related allowance, recorded investment			1,097
Impaired financing receivable, with no related allowance, unpaid principal balance			1,097
Grand Total
Impaired financing received, individually evaluated loans without related allowance, average recorded investment	878	878
Impaired financing received, individually evaluated loans without related allowance, interest income recognized	15	39
Residential mortgage
Impaired loans without related allowance:
Impaired financing receivable, with no related allowance, recorded investment			1,454
Impaired financing receivable, with no related allowance, unpaid principal balance			1,454
Grand Total
Impaired financing received, individually evaluated loans without related allowance, average recorded investment	1,468	1,478
Impaired financing received, individually evaluated loans without related allowance, interest income recognized	22	190
Construction
Impaired loans without related allowance:
Impaired financing receivable, with no related allowance, recorded investment			1,206
Impaired financing receivable, with no related allowance, unpaid principal balance			1,206
Grand Total
Impaired financing received, individually evaluated loans without related allowance, average recorded investment	1,206	1,206
Impaired financing received, individually evaluated loans without related allowance, interest income recognized	20	51
Leases, net
Impaired loans without related allowance:
Impaired financing receivable, with no related allowance, recorded investment			902
Impaired financing receivable, with no related allowance, unpaid principal balance			$ 902
Grand Total
Impaired financing received, individually evaluated loans without related allowance, average recorded investment	500	510
Impaired financing received, individually evaluated loans without related allowance, interest income recognized	$ 0	$ 0

Allowance for Credit Losses - T

Allowance for Credit Losses - Troubled debt restructuring (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]
TDRs included in nonperforming loans and leases	$ 207
TDRs in compliance with modified terms	3,573
Total TDRs	$ 3,780

Allowance for Credit Losses - L

Allowance for Credit Losses - Loan modifications granted categorized as TDRs (Details) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2023 loan	Sep. 30, 2023 loan	Dec. 31, 2022 USD ($) loan loans
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]
Number of loan modifications | loan	3	4	1
New loan modifications			$ 684
Number of loans paid off | loans			2
Loan modifications, paid off			$ 563

Allowance for Credit Losses - M

Allowance for Credit Losses - Modifications to debtors experiencing financial difficulty (Details) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2023 USD ($) loan	Sep. 30, 2023 USD ($) loan	Dec. 31, 2022 loan
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty:
Number of loan modifications | loan	3	4	1
Amortized Cost Basis | $	$ 1,517	$ 3,924
Related Reserve | $	$ 0	$ 0
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty:
Number of Loans | loan	2	3
Amortized Cost Basis | $	$ 306	$ 1,712
Related Reserve | $	$ 77	$ 499
Extend maturity date
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty:
Number of loan modifications | loan	4	4
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty:
Number of Loans | loan	3	3
Commercial and industrial
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty:
Number of loan modifications | loan		1
Amortized Cost Basis | $		$ 2,407
Percentage of Total Class of Financing Receivable (as a percent)		0.80%
Related Reserve | $		$ 0
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty:
Number of Loans | loan		1
Amortized Cost Basis | $		$ 1,406
Percentage of Total Class of Financing Receivable (as a percent)		0.005
Related Reserve | $		$ 422
Commercial and industrial | Extend maturity date
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty:
Number of loan modifications | loan	1	1
Commercial and industrial | Extend term and allow additional lender funding
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty:
Number of Loans | loan	1	1
Small business loans
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty:
Number of loan modifications | loan	3	3
Amortized Cost Basis | $	$ 1,517	$ 1,517
Percentage of Total Class of Financing Receivable (as a percent)	1.10%	1.10%
Related Reserve | $	$ 0	$ 0
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty:
Number of Loans | loan	2	2
Amortized Cost Basis | $	$ 306	$ 306
Percentage of Total Class of Financing Receivable (as a percent)	0.002	0.002
Related Reserve | $	$ 77	$ 77
Small business loans | Extend maturity date
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty:
Number of loan modifications | loan	3	3
Small business loans | Extend term and allow additional lender funding
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty:
Number of Loans | loan	2	2

Short-Term Borrowings and Lon_2

Short-Term Borrowings and Long-Term Debt - Additional Information (Details)	9 Months Ended
	Sep. 30, 2023 USD ($) facility	Dec. 31, 2022 USD ($)
Short-Term Borrowings
Borrowings	$ 150,348,000	$ 113,147,000
Letters of credit
Short-Term Borrowings
Maximum borrowing capacity	637,600,000	505,400,000
Proceeds from long term debt	$ 112,700,000
Federal funds purchased
Short-Term Borrowings
Number of borrowing facilities | facility	1
Maximum borrowing capacity	$ 0	0
Federal funds purchased, facility two
Short-Term Borrowings
Maximum borrowing capacity	15,000,000
Federal Reserve discount window
Short-Term Borrowings
Maximum borrowing capacity	7,700,000
Borrowings	0	0
BTFP Advances
Short-Term Borrowings
Maximum borrowing capacity	33,000,000
Borrowings	$ 33,000,000	$ 0

Short-Term Borrowings and Lon_3

Short-Term Borrowings and Long-Term Debt - Short-term borrowings (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Short-Term Borrowings
Short term borrowings	$ 150,348	$ 113,147
Open Repo Plus Weekly 0.33 Percent Maturing On 6/10/2024
Short-Term Borrowings
Interest rate	5.68%
Short term borrowings	$ 117,348	113,147
BTFP Advances
Short-Term Borrowings
Interest rate	4.76%
Short term borrowings	$ 33,000	$ 0

Short-Term Borrowings and Lon_4

Short-Term Borrowings and Long-Term Debt - Long-term debt (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Mid-term Repo Fixed
Long Term Debt
Long-term debt	$ 27,611	$ 8,935
Mid-term Repo Fixed Maturing On 12/22/2025
Long Term Debt
Long term debt, interest rate	4.23%
Long-term debt	$ 8,935	8,935
Mid-term Repo Fixed Maturing On 09/30/2024
Long Term Debt
Long term debt, interest rate	4.60%
Long-term debt	$ 3,432	0
Mid Term Repo Fixed Maturing On 7/14/2023
Long Term Debt
Long term debt, interest rate	4.57%
Long-term debt	$ 15,244	$ 0

Servicing Assets - Residential

Servicing Assets - Residential Mortgage Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Balance at beginning of the period			$ 12,346
Balance at end of the period	$ 11,835		11,835
Mortgage Servicing Rights
Servicing Assets at Fair Value [Line Items]
Loans serviced	1,000,000		1,000,000		$ 1,000,000
Servicing fee income	612	$ 643	1,900	$ 1,900
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Balance at beginning of the period	9,238	10,610	9,942	10,756
Servicing rights capitalized	9	65	9	648
Amortization of servicing rights	(319)	(356)	(1,025)	(1,092)
Change in valuation allowance	0	(4)	2	3
Balance at end of the period	8,928	10,315	8,928	10,315
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward]
Valuation allowance, beginning of period	0	(1)	(2)	(8)
Impairment	0	(4)	0	(4)
Recovery	0	0	2	7
Valuation allowance, end of the period	0	(5)	0	(5)
SBA Loan Servicing Rights
Servicing Assets at Fair Value [Line Items]
Loans serviced	211,100		211,100		$ 166,100
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Balance at beginning of the period	2,955	2,250	2,404	2,009
Servicing rights capitalized	373	306	1,099	1,146
Amortization of servicing rights	(243)	(173)	(690)	(523)
Change in valuation allowance	(178)	109	94	(140)
Balance at end of the period	2,907	2,492	2,907	2,492
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward]
Valuation allowance, beginning of period	(92)	(345)	(364)	(96)
Impairment	(178)	0	(178)	(280)
Recovery	0	109	272	140
Valuation allowance, end of the period	$ (270)	$ (236)	$ (270)	$ (236)

Servicing Assets - MSR Sensitiv

Servicing Assets - MSR Sensitivity Analysis (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Mortgage Servicing Rights
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair value of residential mortgage servicing rights	$ 11,977	$ 11,567
Weighted average life (months)	28 months	22 months
Prepayment speed	8.73%	8.05%
Impact on fair value of a 10% adverse change in prepayment speed	$ (512)	$ (268)
Impact on fair value of a 20% adverse change in prepayment speed	$ (986)	$ (525)
Discount rate	9.50%	9.50%
Impact on fair value of a 10% adverse change in the discount rate	$ (460)	$ (404)
Impact on fair value of a 20% adverse change in the discount rate	(889)	(777)
SBA Loan Servicing Rights
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair value of residential mortgage servicing rights	$ 3,009	$ 2,422
Weighted average life (months)	3 years 6 months	3 years 9 months 18 days
Prepayment speed	13.79%	12.73%
Impact on fair value of a 10% adverse change in prepayment speed	$ (102)	$ (73)
Impact on fair value of a 20% adverse change in prepayment speed	$ (196)	$ (141)
Discount rate	17.06%	18.96%
Impact on fair value of a 10% adverse change in the discount rate	$ (64)	$ (53)
Impact on fair value of a 20% adverse change in the discount rate	$ (125)	$ (104)

Servicing Assets - SBA Loans (D

Servicing Assets - SBA Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Balance at beginning of the period			$ 12,346
Balance at end of the period	$ 11,835		11,835
SBA Loan Servicing Rights
Servicing Assets at Fair Value [Line Items]
Loans serviced	211,100		211,100		$ 166,100
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Balance at beginning of the period	2,955	$ 2,250	2,404	$ 2,009
Servicing rights capitalized	373	306	1,099	1,146
Amortization of servicing rights	(243)	(173)	(690)	(523)
Change in valuation allowance	(178)	109	94	(140)
Balance at end of the period	2,907	2,492	2,907	2,492
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward]
Valuation allowance, beginning of period	(92)	(345)	(364)	(96)
Impairment	(178)	0	(178)	(280)
Recovery	0	109	272	140
Valuation allowance, end of the period	$ (270)	$ (236)	$ (270)	$ (236)

Servicing Assets - SBA Sensitiv

Servicing Assets - SBA Sensitivity Analysis (Details) - SBA Loan Servicing Rights - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair value of SBA loan servicing rights	$ 3,009	$ 2,422
Weighted average life (months)	3 years 6 months	3 years 9 months 18 days
Prepayment speed	13.79%	12.73%
Impact on fair value of a 10% adverse change in prepayment speed	$ (102)	$ (73)
Impact on fair value of a 20% adverse change in prepayment speed	$ (196)	$ (141)
Discount rate	17.06%	18.96%
Impact on fair value of a 10% adverse change in the discount rate	$ (64)	$ (53)
Impact on fair value of a 20% adverse change in the discount rate	$ (125)	$ (104)

Fair Value Measurements and D_3

Fair Value Measurements and Disclosures - Financial assets measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Assets
Debt securities, fair value	$ 122,218	$ 135,346
Equity investments	2,019	2,086
U.S. asset backed securities
Assets
Debt securities, fair value	11,476	15,281
U.S. government agency MBS
Assets
Debt securities, fair value	11,134	11,739
U.S. government agency CMO
Assets
Debt securities, fair value	19,372	23,318
State and municipal securities
Assets
Debt securities, fair value	33,385	38,838
Non-U.S. government agency CMO
Assets
Debt securities, fair value	10,220	9,089
Corporate bonds
Assets
Debt securities, fair value	7,102	7,558
Recurring
Assets
Equity investments	2,019	2,086
Mortgage loans held for sale	23,144	22,243
Mortgage loans held for investment	13,231	14,502
Total	166,303	178,110
Liabilities
Total	4,410	3,895
Recurring | U.S. asset backed securities
Assets
Debt securities, fair value	11,476	15,281
Recurring | U.S. government agency MBS
Assets
Debt securities, fair value	11,134	11,739
Recurring | U.S. government agency CMO
Assets
Debt securities, fair value	19,372	23,318
Recurring | State and municipal securities
Assets
Debt securities, fair value	33,385	38,838
Recurring | U.S. Treasuries
Assets
Debt securities, fair value	29,529	29,523
Recurring | Non-U.S. government agency CMO
Assets
Debt securities, fair value	10,220	9,089
Recurring | Corporate bonds
Assets
Debt securities, fair value	7,102	7,558
Recurring | Interest Rate Lock Commitments
Assets
Derivative assets, Fair value	229	87
Liabilities
Derivative Liability	83	79
Recurring | Forward Commitments
Assets
Derivative assets, Fair value	50
Liabilities
Derivative Liability	0
Recurring | Customer derivatives - interest rate swaps
Assets
Derivative assets, Fair value	4,387	3,846
Liabilities
Derivative Liability	4,321	3,799
Recurring | Interest rate swaps
Assets
Derivative assets, Fair value	1,023
Recurring | Risk Participation Agreements
Liabilities
Derivative Liability	6	17
Recurring | Level 1
Assets
Equity investments	0	0
Mortgage loans held for sale	0	0
Mortgage loans held for investment	0	0
Total	29,529	29,523
Liabilities
Total	0	0
Recurring | Level 1 | U.S. asset backed securities
Assets
Debt securities, fair value	0	0
Recurring | Level 1 | U.S. government agency MBS
Assets
Debt securities, fair value	0	0
Recurring | Level 1 | U.S. government agency CMO
Assets
Debt securities, fair value	0	0
Recurring | Level 1 | State and municipal securities
Assets
Debt securities, fair value	0	0
Recurring | Level 1 | U.S. Treasuries
Assets
Debt securities, fair value	29,529	29,523
Recurring | Level 1 | Non-U.S. government agency CMO
Assets
Debt securities, fair value	0	0
Recurring | Level 1 | Corporate bonds
Assets
Debt securities, fair value	0	0
Recurring | Level 1 | Interest Rate Lock Commitments
Assets
Derivative assets, Fair value	0	0
Liabilities
Derivative Liability	0	0
Recurring | Level 1 | Forward Commitments
Assets
Derivative assets, Fair value	0
Liabilities
Derivative Liability	0
Recurring | Level 1 | Customer derivatives - interest rate swaps
Assets
Derivative assets, Fair value	0	0
Liabilities
Derivative Liability	0	0
Recurring | Level 1 | Interest rate swaps
Assets
Derivative assets, Fair value	0
Recurring | Level 1 | Risk Participation Agreements
Liabilities
Derivative Liability	0	0
Recurring | Level 2
Assets
Equity investments	2,019	2,086
Mortgage loans held for sale	23,144	22,243
Mortgage loans held for investment	13,231	14,502
Total	136,545	148,500
Liabilities
Total	4,327	3,816
Recurring | Level 2 | U.S. asset backed securities
Assets
Debt securities, fair value	11,476	15,281
Recurring | Level 2 | U.S. government agency MBS
Assets
Debt securities, fair value	11,134	11,739
Recurring | Level 2 | U.S. government agency CMO
Assets
Debt securities, fair value	19,372	23,318
Recurring | Level 2 | State and municipal securities
Assets
Debt securities, fair value	33,385	38,838
Recurring | Level 2 | U.S. Treasuries
Assets
Debt securities, fair value	0	0
Recurring | Level 2 | Non-U.S. government agency CMO
Assets
Debt securities, fair value	10,220	9,089
Recurring | Level 2 | Corporate bonds
Assets
Debt securities, fair value	7,102	7,558
Recurring | Level 2 | Interest Rate Lock Commitments
Assets
Derivative assets, Fair value	0	0
Liabilities
Derivative Liability	0	0
Recurring | Level 2 | Forward Commitments
Assets
Derivative assets, Fair value	50
Liabilities
Derivative Liability	0
Recurring | Level 2 | Customer derivatives - interest rate swaps
Assets
Derivative assets, Fair value	4,387	3,846
Liabilities
Derivative Liability	4,321	3,799
Recurring | Level 2 | Interest rate swaps
Assets
Derivative assets, Fair value	1,023
Recurring | Level 2 | Risk Participation Agreements
Liabilities
Derivative Liability	6	17
Recurring | Level 3
Assets
Equity investments	0	0
Mortgage loans held for sale	0	0
Mortgage loans held for investment	0	0
Total	229	87
Liabilities
Total	83	79
Recurring | Level 3 | U.S. asset backed securities
Assets
Debt securities, fair value	0	0
Recurring | Level 3 | U.S. government agency MBS
Assets
Debt securities, fair value	0	0
Recurring | Level 3 | U.S. government agency CMO
Assets
Debt securities, fair value	0	0
Recurring | Level 3 | State and municipal securities
Assets
Debt securities, fair value	0	0
Recurring | Level 3 | U.S. Treasuries
Assets
Debt securities, fair value	0	0
Recurring | Level 3 | Non-U.S. government agency CMO
Assets
Debt securities, fair value		0
Recurring | Level 3 | Corporate bonds
Assets
Debt securities, fair value	0	0
Recurring | Level 3 | Interest Rate Lock Commitments
Assets
Derivative assets, Fair value	229	87
Liabilities
Derivative Liability	83	79
Recurring | Level 3 | Forward Commitments
Assets
Derivative assets, Fair value	0
Liabilities
Derivative Liability	0
Recurring | Level 3 | Customer derivatives - interest rate swaps
Assets
Derivative assets, Fair value	0	0
Liabilities
Derivative Liability	0	0
Recurring | Level 3 | Interest rate swaps
Assets
Derivative assets, Fair value	0
Recurring | Level 3 | Risk Participation Agreements
Liabilities
Derivative Liability	$ 0	$ 0

Fair Value Measurements and D_4

Fair Value Measurements and Disclosures - Financial assets measured at fair value on non-recurring basis (Details) - Nonrecurring - Level 3 - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Financial assets measured at fair value on a nonrecurring basis
Mortgage servicing rights	$ 8,928	$ 9,942
SBA loan servicing rights	2,907	2,404
Total	26,662	14,627
Commercial and industrial
Financial assets measured at fair value on a nonrecurring basis
Impaired loans	12,371	0
Small business loans
Financial assets measured at fair value on a nonrecurring basis
Impaired loans	$ 2,456	$ 2,281

Fair Value Measurements and D_5

Fair Value Measurements and Disclosures - Level 3 valuation (Details) - Level 3 - Valuation, Income Approach - Measurement Input, Appraised Value $ in Thousands	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	$ 14,827	$ 2,281
Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input (as a percent)	0.02	0.02
Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input (as a percent)	0.33	0.15

Fair Value Measurements and D_6

Fair Value Measurements and Disclosures - Estimated fair values of financial instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Financial assets:
Loans at fair value	$ 13,231	$ 14,502
Level 1 | Carrying amount
Financial assets:
Cash and cash equivalents	59,759	38,391
Level 1 | Fair value
Financial assets:
Cash and cash equivalents	59,759	38,391
Level 2 | Carrying amount
Financial assets:
Mortgage loans held for sale	23,144	22,243
Mortgage loans held for investment	13,231	14,502
Financial liabilities:
Deposits	1,808,645	1,712,479
Borrowings	177,959	122,082
Subordinated debentures	50,079	40,346
Level 2 | Fair value
Financial assets:
Mortgage loans held for sale	23,144	22,243
Mortgage loans held for investment	13,231	14,502
Financial liabilities:
Deposits	1,780,200	1,575,600
Borrowings	179,000	122,082
Subordinated debentures	50,218	40,020
Level 3 | Carrying amount
Financial assets:
Loans at fair value	1,872,398	1,729,180
Level 3 | Fair value
Financial assets:
Loans at fair value	$ 1,827,125	$ 1,679,955

Fair Value Measurements and D_7

Fair Value Measurements and Disclosures - Fair value on a recurring basis (Details) - Interest Rate Lock Commitments - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at beginning of the period	$ 261	$ 374	$ 87	$ 1,122
(Decrease) increase in value	(32)	(237)	142	(985)
Balance at end of the period	$ 229	$ 137	$ 229	$ 137

Fair Value Measurements and D_8

Fair Value Measurements and Disclosures - Valuation techniques for level 3 interest rate lock (Details) - Interest Rate Lock Commitments - Level 3 - Valuation Technique, Consensus Pricing Model $ in Thousands	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset	$ 229	$ 87
Valuation technique extensible list	Valuation Technique, Consensus Pricing Model	Valuation Technique, Consensus Pricing Model
Measurement input extensible list	Loan Origination Success Rate [Member]	Loan Origination Success Rate [Member]
Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input (as a percent)	0.01	0.01
Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input (as a percent)	0.99	0.99
Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input (as a percent)	0.8412	0.8405

Derivative Financial Instrume_3

Derivative Financial Instruments - Notional amounts and fair values of derivative financial instruments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023	Dec. 31, 2022
Derivative Financial Instruments
Notional amount	$ 242,810		$ 242,810			$ 127,456
Net change in unrealized gains (losses) on interest rate swaps used in cash flow hedges, net of tax effect of $(140), $0, $(233), and $0, respectively	497	$ 0	825	$ 0
Assets (liabilities) fair value	1,279		1,279			38
Interest Rate Swap, One
Derivative Financial Instruments
Notional amount					$ 25,000
Fixed interest rate (as a percent)					4.07%
Interest Rate Swap, Two
Derivative Financial Instruments
Notional amount					$ 25,000
Fixed interest rate (as a percent)					4.027%
Interest Rate Swap, Three
Derivative Financial Instruments
Notional amount					$ 25,000
Fixed interest rate (as a percent)					4.117%
Interest Rate Lock Commitments
Derivative Financial Instruments
Notional amount	61,275		61,275			32,698
Assets (liabilities) fair value	146		146			8
Interest Rate Lock Commitments | Other assets
Derivative Financial Instruments
Notional amount	40,015		40,015			16,590
Assets (liabilities) fair value	229		229			87
Interest Rate Lock Commitments | Other liabilities
Derivative Financial Instruments
Notional amount	21,260		21,260			16,108
Assets (liabilities) fair value	(83)		(83)			(79)
Forward Commitments
Derivative Financial Instruments
Notional amount	6,750		6,750			0
Assets (liabilities) fair value	50		50			0
Forward Commitments | Other assets
Derivative Financial Instruments
Notional amount	6,750		6,750			0
Assets (liabilities) fair value	50		50			0
Forward Commitments | Other liabilities
Derivative Financial Instruments
Notional amount	0		0			0
Assets (liabilities) fair value	0		0			0
Customer derivatives - interest rate swaps
Derivative Financial Instruments
Notional amount	92,674		92,674			87,558
Assets (liabilities) fair value	66		66			47
Customer derivatives - interest rate swaps | Other assets
Derivative Financial Instruments
Notional amount	46,337		46,337			43,779
Assets (liabilities) fair value	4,387		4,387			3,846
Customer derivatives - interest rate swaps | Other liabilities
Derivative Financial Instruments
Notional amount	46,337		46,337			43,779
Assets (liabilities) fair value	(4,321)		(4,321)			(3,799)
Risk Participation Agreements
Derivative Financial Instruments
Notional amount	7,111		7,111			7,200
Assets (liabilities) fair value	(6)		(6)			(17)
Risk Participation Agreements | Other assets
Derivative Financial Instruments
Notional amount	0		0			0
Assets (liabilities) fair value	0		0			0
Risk Participation Agreements | Other liabilities
Derivative Financial Instruments
Notional amount	7,111		7,111			7,200
Assets (liabilities) fair value	(6)		(6)			(17)
Interest rate swaps
Derivative Financial Instruments
Notional amount	75,000		75,000			0
Assets (liabilities) fair value	1,023		1,023			0
Interest rate swaps | Other assets
Derivative Financial Instruments
Notional amount	75,000		75,000			0
Assets (liabilities) fair value	1,023		1,023			0
Interest rate swaps | Other liabilities
Derivative Financial Instruments
Notional amount	0		0			0
Assets (liabilities) fair value	$ 0		$ 0			$ 0

Derivative Financial Instrume_4

Derivative Financial Instruments - Fair value gains and losses on derivative financial instruments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Summary of the fair value gains and losses on derivative financial instruments
Net fair value (losses) gains on derivative financial instruments	$ 693	$ 127	$ 1,241	$ (713)
Realized gain (losses) on derivatives	82	399	81	4,941
Interest Rate Lock Commitments
Summary of the fair value gains and losses on derivative financial instruments
Net fair value (losses) gains on derivative financial instruments	29	(405)	138	(1,380)
Forward Commitments
Summary of the fair value gains and losses on derivative financial instruments
Net fair value (losses) gains on derivative financial instruments	37	485	50	516
Customer derivatives - interest rate swaps
Summary of the fair value gains and losses on derivative financial instruments
Net fair value (losses) gains on derivative financial instruments	33	47	19	151
Risk Participation Agreements
Summary of the fair value gains and losses on derivative financial instruments
Net fair value (losses) gains on derivative financial instruments	6	0	11	0
Interest rate swaps
Summary of the fair value gains and losses on derivative financial instruments
Net fair value (losses) gains on derivative financial instruments	$ 588	$ 0	$ 1,023	$ 0

Segments - Narrative (Details)

Segments - Narrative (Details)	9 Months Ended
	Sep. 30, 2023 loan
Mortgage
Segments
Number of loan production offices	12

Segments - Business segment (De

Segments - Business segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Net-interest Income:
Net interest income	$ 17,224	$ 18,026	$ 52,001	$ 51,610
Provision (recovery of provision) for credit losses	82	526	2,186	1,743
Net interest income after provision for credit losses	17,142	17,500	49,815	49,867
Non-interest Income
Mortgage banking income	4,819	7,329	13,143	21,367
Revenue from contract with customer	1,258	1,114	3,689	3,672
SBA loan income	982	989	3,463	3,946
Net change in fair values	(356)	(996)	(544)	(4,306)
Net gain on hedging activity	82	399	81	4,941
Other	1,301	1,389	4,016	4,108
Total non-interest income	8,086	10,224	23,848	33,728
Total non-interest expense	20,018	20,261	57,422	61,400
Income (loss) before income taxes	5,210	7,463	16,241	22,195
Total Assets	2,230,971	1,921,924	2,230,971	1,921,924	$ 2,062,228
Bank
Net-interest Income:
Net interest income	17,205	17,664	51,928	50,197
Provision (recovery of provision) for credit losses	82	526	2,186	1,743
Net interest income after provision for credit losses	17,123	17,138	49,742	48,454
Non-interest Income
Mortgage banking income	80	72	221	394
Revenue from contract with customer	0	0	0	0
SBA loan income	982	989	3,463	3,946
Net change in fair values	38	47	30	151
Net gain on hedging activity	0	0	0	0
Other	658	622	1,982	1,776
Total non-interest income	1,758	1,730	5,696	6,267
Total non-interest expense	12,564	11,354	35,608	32,186
Income (loss) before income taxes	6,317	7,514	19,830	22,535
Total Assets	2,177,145	1,858,770	2,177,145	1,858,770
Wealth
Net-interest Income:
Net interest income	(15)	218	(12)	628
Provision (recovery of provision) for credit losses	0	0	0	0
Net interest income after provision for credit losses	(15)	218	(12)	628
Non-interest Income
Mortgage banking income	0	0	0	0
Revenue from contract with customer	1,258	1,114	3,689	3,672
SBA loan income	0	0	0	0
Net change in fair values	0	0	0	0
Net gain on hedging activity	0	0	0	0
Other	0	0	0	(1)
Total non-interest income	1,258	1,114	3,689	3,671
Total non-interest expense	826	780	2,704	2,480
Income (loss) before income taxes	417	552	973	1,819
Total Assets	8,833	7,927	8,833	7,927
Mortgage
Net-interest Income:
Net interest income	34	144	85	785
Provision (recovery of provision) for credit losses	0	0	0	0
Net interest income after provision for credit losses	34	144	85	785
Non-interest Income
Mortgage banking income	4,739	7,257	12,922	20,973
Revenue from contract with customer	0	0	0	0
SBA loan income	0	0	0	0
Net change in fair values	(394)	(1,043)	(574)	(4,457)
Net gain on hedging activity	82	399	81	4,941
Other	643	767	2,034	2,333
Total non-interest income	5,070	7,380	14,463	23,790
Total non-interest expense	6,628	8,127	19,110	26,734
Income (loss) before income taxes	(1,524)	(603)	(4,562)	(2,159)
Total Assets	$ 44,993	$ 55,227	$ 44,993	$ 55,227

Subordinated Debentures (Detail

Subordinated Debentures (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Dec. 31, 2022
Subordinated Debt
Subordinated Borrowing [Line Items]
Debt Origination Costs	$ (776)	$ (776)	$ (826)
Long-term debt	$ 50,079	$ 50,079	40,346
2023 Debentures
Subordinated Borrowing [Line Items]
Interest rate (as a percent)	8%	8%
2023 Debentures | Subordinated Debt
Subordinated Borrowing [Line Items]
Subordinated debentures	$ 9,740	$ 9,740	0
2019 Debentures
Subordinated Borrowing [Line Items]
Interest rate (as a percent)		5.38%
2019 Debentures | Subordinated Debt
Subordinated Borrowing [Line Items]
Subordinated debentures	40,000	$ 40,000	40,000
2013 Debentures
Subordinated Borrowing [Line Items]
Interest rate (as a percent)		6.50%
2013 Debentures | Subordinated Debt
Subordinated Borrowing [Line Items]
Subordinated debentures	596	$ 596	653
2011 Debentures
Subordinated Borrowing [Line Items]
Interest rate (as a percent)		6%
2011 Debentures | Subordinated Debt
Subordinated Borrowing [Line Items]
Subordinated debentures	463	$ 463	463
2008 Debentures
Subordinated Borrowing [Line Items]
Interest rate (as a percent)		6%
2008 Debentures | Subordinated Debt
Subordinated Borrowing [Line Items]
Subordinated debentures	$ 56	$ 56	$ 56
Subordinated borrowing, term (in years)	10 years