Orange County Bancorp (OBT) 10-Q11 Aug 232023 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2023	Aug. 07, 2023
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-40711
Entity Registrant Name	Orange County Bancorp, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-1135778
Entity Address, Address Line One	212 Dolson Avenue
Entity Address, City or Town	Middletown
Entity Address State Or Province	NY
Entity Address, Postal Zip Code	10940
City Area Code	845
Local Phone Number	341-5000
Title of 12(b) Security	Common Stock, par value $0.50 per share
Trading Symbol	OBT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,645,304
Entity Central Index Key	0001754226
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
ASSETS
Cash and due from banks	$ 178,619	$ 86,081
Investment securities - available-for-sale (amortized cost $578,530, net of allowance for credit losses of $0 at June 30, 2023 and $609,954, net of allowance for credit losses of $0 at December 31, 2022)	503,243	533,461
Restricted investment in bank stocks	11,494	9,562
Loans	1,713,113	1,569,430
Allowance for credit losses	(24,848)	(21,832)
Loans, net	1,688,265	1,547,598
Premises and equipment, net	16,360	14,739
Accrued interest receivable	5,808	6,320
Bank owned life insurance	40,945	40,463
Goodwill	5,359	5,359
Intangible assets	1,249	1,392
Other assets	42,567	42,359
TOTAL ASSETS	2,493,909	2,287,334
Deposits:
Noninterest bearing	715,630	723,228
Interest bearing	1,422,608	1,251,159
Total deposits	2,138,238	1,974,387
FHLB advances, short term	156,500	131,500
FHLB advances, long term	10,000
Subordinated notes, net of issuance costs	19,484	19,447
Accrued expenses and other liabilities	21,516	23,862
TOTAL LIABILITIES	2,345,738	2,149,196
STOCKHOLDERS' EQUITY
Common stock, $0.50 par value; 15,000,000 shares authorized; 5,683,304 issued; 5,645,304 and 5,642,621 outstanding, at June 30, 2023 and December 31, 2022, respectively	2,842	2,842
Surplus	120,272	120,107
Retained Earnings	92,795	84,635
Accumulated other comprehensive income (loss), net of taxes	(66,459)	(68,196)
Treasury stock, at cost; 38,000 and 40,683 shares at June 30, 2023 and December 31, 2022, respectively	(1,279)	(1,250)
TOTAL STOCKHOLDERS' EQUITY	148,171	138,138
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 2,493,909	$ 2,287,334

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
Available-for-sale amortized cost	$ 578,530	$ 609,954
Available-for-sale allowance for credit losses	$ 0	$ 0
Common stock, Par value (in dollars per share)	$ 0.50	$ 0.50
Common stock, Authorized (in shares)	15,000,000	15,000,000
Common stock, Issued (in shares)	5,683,304	5,683,304
Common stock, Outstanding (in shares)	5,645,304	5,642,621
Treasury stock (in shares)	38,000	40,683

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
INTEREST INCOME
Interest and fees on loans	$ 23,879	$ 15,200	$ 45,716	$ 30,206
Interest on investment securities:
Taxable	3,348	2,249	6,420	3,887
Tax exempt	560	553	1,157	1,034
Interest on Federal funds sold and other	1,953	482	2,811	627
TOTAL INTEREST INCOME	29,740	18,484	56,104	35,754
INTEREST EXPENSE
Savings and NOW accounts	3,145	651	5,575	1,221
Time deposits	1,479	51	1,939	139
FHLB advances	2,283		4,388
Note payable		42		84
Subordinated notes	231	231	461	462
TOTAL INTEREST EXPENSE	7,138	975	12,363	1,906
NET INTEREST INCOME	22,602	17,509	43,741	33,848
Provision for credit losses- investments			5,000
Provision for credit losses	214	5,510	1,569	6,433
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	22,388	11,999	37,172	27,415
NONINTEREST INCOME
Service charges on deposit accounts	205	161	378	329
Trust income	1,265	1,223	2,441	2,393
Investment advisory income	1,289	1,099	2,486	2,300
Investment securities gains, net			107
Earnings on bank owned life insurance	244	236	482	469
Other	283	258	562	491
TOTAL NONINTEREST INCOME	3,286	2,977	6,456	5,982
NONINTEREST EXPENSE
Salaries	6,217	5,499	12,471	10,768
Employee benefits	1,740	1,374	3,607	2,775
Occupancy expense	1,180	1,105	2,434	2,328
Professional fees	1,666	1,240	2,713	2,119
Directors' fees and expenses	157	160	387	505
Computer software expense	1,258	1,238	2,481	2,353
FDIC assessment	230	313	560	622
Advertising expenses	434	564	710	755
Advisor expenses related to trust income	30	20	59	158
Telephone expenses	182	138	350	313
Intangible amortization	71	71	143	143
Other	1,282	744	2,560	1,448
TOTAL NONINTEREST EXPENSE	14,447	12,466	28,475	24,287
Income before income taxes	11,227	2,510	15,153	9,110
Provision for income taxes	2,141	400	2,837	1,670
NET INCOME	$ 9,086	$ 2,110	$ 12,316	$ 7,440
Basic earnings per share (in dollars per share)	$ 1.61	$ 0.38	$ 2.19	$ 1.32
Diluted earnings per share (in dollars per share)	$ 1.61	$ 0.38	$ 2.19	$ 1.32
Weighted average shares outstanding, Basic (in shares)	5,629,030	5,618,296	5,627,354	5,618,232
Weighted average shares outstanding, Diluted (in shares)	5,629,030	5,618,296	5,627,354	5,618,232

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
Net Income	$ 9,086	$ 2,110	$ 12,316	$ 7,440
Unrealized gains/(losses) on securities:
Unrealized holding gains/(losses) arising during the period	(10,984)	(25,460)	(3,794)	(54,060)
Credit loss expense			5,000
Reclassification adjustment for (gains) included in net income			(107)
Tax effect	(2,307)	(5,346)	146	(11,352)
Net of tax	(8,677)	(20,114)	953	(42,708)
Defined benefit pension plans:
Net gain/(loss) arising during the period	500	240	1,000	480
Reclassification adjustment for amortization of prior service cost and net gains included in net periodic pension cost		(7)		(14)
Tax effect	105	49	210	98
Net of tax	395	198	790	396
Deferred compensation liability:
Unrealized loss	(4)	(4)	(8)	(7)
Tax effect	(1)	(1)	(2)	(1)
Net of tax	(3)	(3)	(6)	(6)
Total other comprehensive loss	(8,285)	(19,919)	1,737	(42,318)
Total comprehensive income/(loss)	$ 801	$ (17,809)	$ 14,053	$ (34,878)

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance [Member]	Common Stock	Surplus Cumulative Effect, Period of Adoption, Adjusted Balance [Member]	Surplus	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment [Member]	Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance [Member]	Retained Earnings	Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period of Adoption, Adjusted Balance [Member]	Accumulated Other Comprehensive Income (Loss)	Treasury Stock Cumulative Effect, Period of Adoption, Adjusted Balance [Member]	Treasury Stock	Cumulative Effect, Period of Adoption, Adjustment [Member]	Cumulative Effect, Period of Adoption, Adjusted Balance [Member]	Total
Beginning balance at Dec. 31, 2021		$ 2,842		$ 119,825			$ 64,941		$ (3,443)		$ (1,329)			$ 182,836
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income							7,440							7,440
Other comprehensive income (loss), net of taxes									(42,318)					(42,318)
Cash dividends declared							(2,250)							(2,250)
Treasury stock purchased											(189)			(189)
Restricted stock expense				100										100
Stock-based compensation				21							83			104
Ending balance at Jun. 30, 2022		2,842		119,946			70,131		(45,761)		(1,435)			145,723
Beginning balance at Mar. 31, 2022		2,842		119,900			69,146		(25,842)		(1,497)			164,549
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income							2,110							2,110
Other comprehensive income (loss), net of taxes									(19,919)					(19,919)
Cash dividends declared							(1,125)							(1,125)
Restricted stock expense				33										33
Stock-based compensation				13							62			75
Ending balance at Jun. 30, 2022		2,842		119,946			70,131		(45,761)		(1,435)			145,723
Beginning balance at Dec. 31, 2022	$ 2,842	2,842	$ 120,107	120,107	$ (1,561)	$ 83,074	84,635	$ (68,196)	(68,196)	$ (1,250)	(1,250)	$ (1,561)	$ 136,577	138,138
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income							12,316							12,316
Other comprehensive income (loss), net of taxes									1,737					1,737
Cash dividends declared							(2,595)							(2,595)
Treasury stock purchased											(297)			(297)
Restricted stock expense				36										36
Stock-based compensation				129							268			397
Ending balance at Jun. 30, 2023		2,842		120,272			92,795		(66,459)		(1,279)			148,171
Beginning balance at Mar. 31, 2023		2,842		120,268			85,007		(58,174)		(1,363)			148,580
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income							9,086							9,086
Other comprehensive income (loss), net of taxes									(8,285)					(8,285)
Cash dividends declared							(1,298)							(1,298)
Treasury stock purchased											(4)			(4)
Restricted stock expense				8										8
Stock-based compensation				(4)							88			84
Ending balance at Jun. 30, 2023		$ 2,842		$ 120,272			$ 92,795		$ (66,459)		$ (1,279)			$ 148,171

CONDENSED CONSOLIDATED STATEM_6

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Cash dividends declared per share	$ 0.23	$ 0.20	$ 0.46	$ 0.40
Treasury stock purchased (in shares)	118		5,803	4,617
Stock-based compensation (in shares)	2,633	2,060	8,486	2,760

CONDENSED CONSOLIDATED STATEM_7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities
Net income	$ 12,316	$ 7,440
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	6,569	6,433
Depreciation	884	738
Accretion on loans	(1,409)	(1,998)
Amortization of intangibles	143	143
Amortization of subordinated notes issuance costs	36	37
Investment securities (gains) losses	(107)
Restricted stock expense	36	100
Stock-based compensation	397	104
Net amortization of investment premiums	630	898
Earnings on bank owned life insurance	(482)	(469)
Net change in:
Accrued interest receivable	512	(304)
Other assets	434	(115)
Other liabilities	(2,352)	(2,529)
Net cash from operating activities	17,607	10,478
Cash flows from investing activities
Purchases of investment securities available-for-sale	(3,806)	(189,934)
Proceeds from sales of investment securities available-for-sale	7,296
Proceeds from paydowns of investment securities available-for-sale	22,492	33,622
Proceeds from maturities and calls of investment securities available-for-sale	3,254	4,490
Purchase of restricted investment in bank stocks	(30,978)	(870)
Proceeds from redemptions of restricted investment in bank stocks	29,046	24
Net increase in loans	(145,827)	(178,753)
Purchase of premises and equipment	(2,940)	(416)
Disposal of premises and equipment	435
Net cash used by investing activities	(121,028)	(331,837)
Cash flows from financing activities
Net increase in deposits	163,851	289,064
Net change in FHLB advances, short term	25,000
Proceeds from FHLB advances, long term	10,000
Cash dividends paid	(2,595)	(2,250)
Purchases of treasury stock	(297)	(189)
Net cash from financing activities	195,959	286,625
Net change in cash and cash equivalents	92,538	(34,734)
Beginning cash and cash equivalents	86,081	306,179
Ending cash and cash equivalents	178,619	271,445
Supplemental cash flow information:
Interest paid	12,041	1,909
Income taxes paid	3,702	$ 4,056
Supplemental noncash disclosures:
Lease liabilities arising from obtaining right-of-use assets	$ 858

Nature of Operations and Summar

Nature of Operations and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
Nature of Operations and Summary of Significant Accounting Policies
Nature of Operations and Summary of Significant Accounting Policies	Note 1 — Nature of Operations and Summary of Significant Accounting Policies Nature of Operations and Principles of Consolidation: The Company provides commercial and consumer banking services to individuals, small businesses and local municipal governments as well as trust and investment services through the Bank and HVIA. The Company is headquartered in Middletown, New York, with eight locations in Orange County, New York, seven in Westchester County, New York, two in Rockland County, New York, and one in Bronx County, New York. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are commercial real estate, commercial and residential mortgage loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. There are no significant concentrations of loans to any one industry or customer. However, the customers’ ability to repay their loans is dependent on the real estate and general economic conditions in the areas in which they operate. Assets held by the Company in an agency or fiduciary capacity for its customers are excluded from the consolidated financial statements since they do not constitute assets of the Company. Assets held by the Company in an agency or fiduciary capacity for its customers amounted to $1.4 billion and $1.3 billion at June 30, 2023 and December 31, 2022, respectively. Certain information and footnote disclosures normally included in the audited consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2022 for Orange County Bancorp, Inc. contained in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 24, 2023. In the opinion of the management of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting solely of normal and recurring accruals) necessary to present fairly the financial position as of June 30, 2023, the results of operations, comprehensive income/(loss), changes in stockholders’ equity for the three and six months ended June 30, 2023 and 2022 and cash flow statements for the six months ended June 30, 2023 and 2022. The results of operations for any interim period are not necessarily indicative of the results that may be expected for the full year or for any future period. Certain reclassifications have been made to the financial statements to conform with prior period presentations. Use of Estimates: Recent Accounting Pronouncements The Company adopted ASU 2016-13 on January 1, 2023 for all financial assets measured at amortized cost and off-balance sheet credit exposures using the modified retrospective method. Results for the three and six months ended June 30, 2023 are presented under Accounting Standards Codification 326, Financial Instruments – Credit Losses, while prior period amounts continue to be reported with previously applicable GAAP and have not been restated. Effective January 1, 2023, the Company recorded a $1.9 million increase in allowance for credit losses on loans that is referred to as the current expected credit loss (“CECL”) methodology (previously allowance for loan losses), an adjustment of $1.4 million recording reserves related to loans, and a $520 thousand increase related to allowance for off balance sheet credit exposures included in other liabilities section of the consolidated statements of financial condition, which resulted in a total cumulative effect adjustment of $1.6 million, net of tax, and a decrease to retained earnings, a component of the stockholders’ equity. Further information regarding the impact of CECL can be found in Note 3 – Loans and Allowance for Credit Losses. The Company adopted ASU 2022-02, Financial Instruments – Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) prospectively effective January 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measurement of troubled debt restructurings and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty. The Company did not have any loans that were both experiencing financial difficulties and modified during the three and six months ended June 30, 2023. Allowance for Credit Losses On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326) (“ASU 2016-13”), which replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan and lease receivables and held-to-maturity securities. It also applies to off-balance sheet credit exposures (loan commitments, standby letters of credit, financial guarantees, and other similar instruments). In addition, Accounting Standards Codification (“ASC”) 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities which management does not intend to sell or believes that it is more likely than not they will be required to sell. The allowance for credit losses represents the estimated amount considered necessary to cover lifetime expected credit losses inherent in financial assets at the balance sheet date. The measurement of expected credit losses is applicable to loans receivable and securities measured at amortized cost. It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of credit. The allowance is established through a provision for credit losses that is charged against income. The methodology for determining the allowance for credit losses is considered a critical accounting policy by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment that could result in changes to the amount of the recorded allowance for credit losses. The allowance for credit losses is reported separately as a contra-asset on the consolidated statement of financial condition. The expected credit loss for unfunded lending commitments and unfunded loan commitments is reported on the Consolidated Statement of Financial Condition in other liabilities and is recorded within the provision for credit losses. Allowance for Credit Losses on Loans Receivable The allowance for credit losses on loans is deducted from the amortized cost basis of the loan to present the net amount expected to be collected. Expected losses are evaluated and calculated on a collective, or pooled, basis for those loans which share similar risk characteristics. If the loan does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. Individually evaluated loans are primarily non-accrual and collateral dependent loans. Furthermore, the Company evaluates the pooling methodology at least annually to ensure that loans with similar risk characteristics are pooled appropriately. Loans are charged off against the allowance for credit losses when the Company believes the balances to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off. The Company does not estimate expected losses on accrued interest receivable on loans, as accrued interest receivable is reversed or written off when the full collection of the accrued interest receivable related to a loan becomes doubtful. The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk. The Company calculates estimated credit losses for these loan segments using quantitative models and qualitative factors. Further information on loan segmentation and the credit loss estimation is included in Note 3 – Loans and Allowance for Credit Losses. Individually Evaluated Loans On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on its disparate risk characteristics. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan. Allowance for Credit Losses on Off-Balance Sheet Commitments The Company is required to include unfunded commitments that are expected to be funded in the future within the allowance calculation, other than those that are unconditionally cancelable. To arrive at that reserve, the reserve percentage for each applicable segment is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate. As noted above, the allowance for credit losses on unfunded loan commitments is included in other liabilities on the consolidated statement of financial condition and the related credit expense is recorded as provisions for credit losses in the consolidated statements of income. Allowance for Credit Losses on Available for Sale Securities For available for sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more than likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available for sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of tax. Changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. The Company does not estimate expected losses on accrued interest receivable on investments, as accrued interest receivable is reversed or written off when the full collection of the accrued interest receivable related to an investment becomes doubtful.

Investment Securities

Investment Securities	6 Months Ended
Investment Securities	Jun. 30, 2023
Investment Securities
Investment Securities	Note 2 — Investment Securities The amortized cost and fair value of investment securities at June 30, 2023 and December 31, 2022: Gross Gross Amortized Unrealized Unrealized ACL Fair Cost Gains Losses Adjustment Value Available-for-sale June 30, 2023 U.S. government agencies and treasuries $ 100,087 $ 20 $ (10,776) $ — $ 89,331 Mortgage-backed securities 352,046 13 (47,504) — 304,555 Corporate Securities 23,539 — (3,633) — 19,906 Obligations of states and political subdivisions 102,858 26 (13,433) — 89,451 Total debt securities $ 578,530 $ 59 $ (75,346) $ — $ 503,243 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale December 31, 2022 U.S. government agencies and treasuries $ 104,734 $ 25 $ (11,009) $ 93,750 Mortgage-backed securities 364,690 17 (47,792) 316,915 Corporate Securities 28,559 — (2,901) 25,658 Obligations of states and political subdivisions 111,971 48 (14,881) 97,138 Total debt securities $ 609,954 $ 90 $ (76,583) $ 533,461 Proceeds from sales of securities and associated gains and losses for the three and six months ended June 30, 2023 and 2022. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Proceeds $ — $ — $ 7,296 $ — Gross realized gains $ — $ — $ 130 $ — Gross realized losses — — 23 — Net gain on sales of securities — — 107 — Tax provision on realized net gains and loss — — 20 — Net gain on sales of securities, after tax $ — $ — $ 87 $ — The amortized cost and fair value of debt securities as of June 30, 2023 are shown below by contractual maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-sale Amortized Fair Cost Value Due in one year or less $ 6,877 $ 6,787 Due after one through five years 22,558 21,144 Due after five through ten years 62,095 53,580 Due after ten years 134,954 117,177 226,484 198,688 Mortgage-backed securities 352,046 304,555 Total debt securities $ 578,530 $ 503,243 Securities pledged at June 30, 2023 and December 31, 2022 had a carrying amount of $395,374 and $323,674 and were pledged to secure public deposits. At June 30, 2023 and December 31, 2022, there were no holdings of securities of any one issuer, other than the US Government and its agencies, in an amount greater than 10% of stockholders’ equity. The following tables summarize securities with unrealized losses for which an allowance for credit losses has not been recorded at June 30, 2023 and December 31, 2022, aggregated by major security types and length of time in a continuous unrealized loss position: Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Available-for-sale June 30, 2023 U.S. government agencies and treasuries $ 29,342 $ (1,100) $ 55,696 $ (9,676) $ 85,038 $ (10,776) Mortgage-backed securities 18,630 (424) 284,909 (47,080) 303,539 (47,504) Corporate Securities 3,968 (532) 15,938 (3,101) 19,906 (3,633) Obligations of states and political subdivisions 5,210 (181) 81,206 (13,252) 86,416 (13,433) Total debt securities $ 57,150 $ (2,237) $ 437,749 $ (73,109) $ 494,899 $ (75,346) Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Available-for-sale December 31, 2022 U.S. government agencies $ 47,064 $ (2,414) $ 41,718 $ (8,595) $ 88,782 $ (11,009) Mortgage-backed securities 150,542 (12,139) 165,336 (35,653) 315,878 (47,792) Corporate Securities 12,503 (1,007) 13,155 (1,894) 25,658 (2,901) Obligations of states and political subdivisions 57,287 (6,763) 32,479 (8,118) 89,766 (14,881) Total debt securities $ 267,396 $ (22,323) $ 252,688 $ (54,260) $ 520,084 $ (76,583) As of June 30, 2023, the Company’s securities portfolio consisted of 276 securities, 251 of which were in an unrealized loss position. As of December 31, 2022, the Company’s securities portfolio consisted of 296 securities, 264 of which were in an unrealized loss position. Unrealized losses are primarily related to the Company’s mortgage backed securities, U.S. government agency securities, and investments in obligations of states and political subdivisions as discussed below. Available for sale securities are evaluated to determine if a decline in fair value below the amortized cost basis has resulted from a credit loss or other factors. An impairment related to credit factors would be recorded through an allowance for credit losses. The allowance is limited to the amount by which the security’s amortized cost basis exceeds the fair value. An impairment that has not been recorded through an allowance for credit losses shall be recorded through other comprehensive income, net of applicable taxes. Investment securities will be written down to fair value through the Consolidated Statements of Income when management intends to sell, or may be required to sell, the securities before they recover in value. Primarily all of the investment securities are backed by loans guaranteed by either U.S. government agencies or U.S government-sponsored entities, and management believes that default is highly unlikely given the lack of historical credit losses and governmental backing. Management believes that the unrealized losses on these securities are a function of changes in market interest rates and credit spreads, not changes in credit quality. The Company’s available for sale debt securities portfolio includes corporate bonds and revenue bonds, among other securities. These types of securities may pose a higher risk of future impairment charges as a result of the changes in market interest rates, unpredictable nature of the U.S. economy and their potential negative effect on the future performance of the security issuers. Available for sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses on a quarterly basis. Based on a comparison of the present value of expected cash flows to the amortized cost as well as a potential market for sale, the Company determined that there was no value to its corporate bond issued by Signature Bank due to its failure. Accordingly, the Company wrote off the amount of the corporate bond totaling million during the quarter ended June 30, 2023. The amount of the writedown was previously recorded through an allowance for credit losses. The Company also evaluated available for sale debt securities that are in an unrealized loss position as of June 30, 2023 included in the table above and has determined that the declines in fair value are mainly attributable to interest rates, credit spreads, market volatility and liquidity conditions, not credit quality or other factors. There was impairment recognized during the three months ended June 30, 2023. Accrued interest on investments, which is excluded from the amortized cost of available for sale debt securities, totaled The Company does not intend to sell any of its available for sale debt securities in an unrealized loss position prior to recovery of their amortized cost basis, and it is more likely than not that the Company will not be required to sell any of its securities prior to recovery of their amortized cost basis. The following table presents the activity in the allowance for credit losses associated with investment securities for the six months ended June 30, 2023: Allowance for credit losses -investments: Beginning balance $ — Provision for loan losses 5,000 Charge-offs 5,000 Recoveries — Ending balance $ —

Loans

Loans	6 Months Ended
Loans	Jun. 30, 2023
Loans
Loans	Note 3 — Loans Loans at June 30, 2023 and December 31, 2022 were as follows: June 30, 2023 December 31, 2022 Commercial and industrial $ 257,515 $ 258,901 Commercial real estate 1,213,113 1,098,054 Commercial real estate construction 116,919 109,570 Residential real estate 83,295 74,277 Home equity 12,049 12,329 Consumer 30,222 16,299 Total Loans $ 1,713,113 $ 1,569,430 Allowance for credit losses (24,848) (21,832) Net Loans $ 1,688,265 $ 1,547,598 Included in commercial and industrial loans as of June 30, 2023 and December 31, 2022 were loans issued under the SBA’s Paycheck Protection Program (“PPP”) of $1,535 and $1,717, respectively. Allowance for Credit Losses The Company engaged a third-party vendor to assist in the CECL calculation and internal governance framework to oversee the quarterly estimation process for the allowance for credit losses (“ACL”). The ACL calculation methodology relies on regression-based discounted cash flow (“DCF”) models that correlate relationships between certain financial metrics and external market and macroeconomic variables. The Company uses Proability of Default (“PD”) and Loss Given Default (“LGD”) with quantitative factors and qualitative considerations in the calculation of the allowance for credit losses for collectively evaluated loans. The Company uses a reasonable and supportable period of one year, at which point loss assumptions revert back to historical loss information by means of a one-year reversion period. Following are some of the key factors and assumptions that are used in the Company’s CECL calculations: • methods based on probability of default and loss given default which are modeled based on macroeconomic scenarios; • a reasonable and supportable forecast period determined based on management’s current review of macroeconomic environment; • a reversion period after the reasonable and supportable forecast period; • estimated prepayment rates based on the Company’s historical experience and future macroeconomic environment; • estimated credit utilization rates based on the Company’s historical experience and future macroeconomic environment; and • incorporation of qualitative factors not captured within the modeled results. The qualitative factors include but are not limited to changes in lending policies, business conditions, changes in the nature and size of the portfolio, portfolio concentrations, and external factors such as competition. Allowance for Credit Losses are aggregated for the major loan segments, with similar risk characteristics, summarized below. However, for the purposes of calculating the reserves, these segments may be further broken down into loan classes by risk characteristics that include but are not limited to regulatory call codes, industry type, geographic location, and collateral type. Residential real estate loans involve certain risks such as interest rate risk and risk of non-repayment. Adjustable-rate residential real estate loans decrease the interest rate risk to the Bank that is associated with changes in interest rates but involve other risks, primarily because as interest rates rise, the payment by the borrower rises to the extent permitted by the terms of the loan, thereby increasing the potential for default. At the same time, the marketability of the underlying properties may be adversely affected by higher interest rates. Repayment risk may be affected by a number of factors including, but not necessarily limited to, job loss, divorce, illness and personal bankruptcy of the borrower. Commercial and multi-family real estate lending entails additional risks as compared with residential family property lending. Such loans typically involve large loan balances to single borrowers or groups of related borrowers. The payment experience on such loans is typically dependent on the successful operation of the real estate project. The success of such projects is sensitive to changes in supply and demand conditions in the market for commercial real estate as well as general economic conditions. Construction lending is generally considered to involve a high risk due to the concentration of principal in a limited number of loans and borrowers and the effects of the general economic conditions on developers and builders. Moreover, a construction loan can involve additional risks because of the inherent difficulty in estimating both a property’s value at completion of the project and the estimated cost (including interest) of the project. The nature of these loans is such that they are generally difficult to evaluate and monitor. In addition, speculative construction loans to a builder are not necessarily pre-sold and thus pose a greater potential risk to the Bank than construction loans to individuals on their personal residence. Commercial and industrial lending, including lines of credit, is generally considered higher risk due to the concentration of principal in a limited number of loans and borrowers and the effects of general economic conditions on the business. Commercial business loans are primarily secured by inventories and other business assets. In many cases, any repossessed collateral for a defaulted commercial business loans will not provide an adequate source of repayment of the outstanding loan balance. Home equity lending entails certain risks such as interest rate risk and risk of non-repayment. The marketability of the underlying property may be adversely affected by higher interest rates, decreasing the collateral value securing the loan. Repayment risk can be affected by job loss, divorce, illness and personal bankruptcy of the borrower. Home equity line of credit lending entails securing an equity interest in the borrower’s home. In many cases, the Bank’s position in these loans is as a junior lien holder to another institution’s superior lien. This type of lending is often priced on an adjustable rate basis with the rate set at or above a predefined index. Adjustable-rate loans decrease the interest rate risk to the Bank that is associated with changes in interest rates but involve other risks, primarily because as interest rates rise, the payment by the borrower rises to the extent permitted by the terms of the loan, thereby increasing the potential for default. Consumer loans generally have more credit risk because of the type and nature of the collateral and, in certain cases, the absence of collateral. Consumer loans generally have shorter terms and higher interest rates than other lending. In addition, consumer lending collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be adversely affected by job loss, divorce, illness and personal bankruptcy. In many cases, any repossessed collateral for a defaulted consumer loan will not provide an adequate source of repayment of the outstanding loan. The following tables present the activity in the allowance by portfolio segment for each of the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, 2023 Commercial Commercial And Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total Allowance for credit losses: Beginning balance $ 5,141 $ 16,698 $ 1,625 $ 1,048 $ 72 $ 142 $ 24,726 Provision for credit losses 186 421 (565) (56) (26) 254 214 Charge-offs (192) — — — — — (192) Recoveries 20 — — — — 80 100 Ending balance $ 5,155 $ 17,119 $ 1,060 $ 992 $ 46 $ 476 $ 24,848 Six Months Ended June 30, 2023 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total Allowance for loan losses: Beginning balance, prior to adoption of ASC 326 $ 5,510 $ 14,364 $ 1,252 $ 345 $ 63 $ 298 $ 21,832 Impact of adopting ASC 326 72 1,737 (8) (227) (17) (129) 1,428 Provision for loan losses (151) 1,005 (184) 874 — 203 1,747 Charge-offs (334) — — — — (36) (370) Recoveries 58 13 — — — 140 211 Ending balance $ 5,155 $ 17,119 $ 1,060 $ 992 $ 46 $ 476 $ 24,848 Three Months Ended June 30, 2022 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total Allowance for loan losses: Beginning balance $ 5,408 $ 11,073 $ 1,296 $ 294 $ 69 $ 287 $ 18,427 Provision for loan losses 3,944 1,230 22 56 (1) 259 5,510 Charge-offs (29) — — (51) — (260) (340) Recoveries 9 — — — — 36 45 Ending balance $ 9,332 $ 12,303 $ 1,318 $ 299 $ 68 $ 322 $ 23,642 Six Months Ended June 30, 2022 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total Allowance for loan losses: Beginning balance $ 4,901 $ 11,183 $ 964 $ 272 $ 80 $ 261 $ 17,661 Provision for loan losses 4,492 1,120 354 78 (12) 401 6,433 Charge-offs (76) — — (51) — (380) (507) Recoveries 15 — — — — 40 55 Ending balance $ 9,332 $ 12,303 $ 1,318 $ 299 $ 68 $ 322 $ 23,642 The following tables present the balance in the allowance and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2023 and December 31, 2022: Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total June 30, 2023 Allowance for credit losses: Ending balance: individually evaluated for impairment $ 554 $ 366 $ — $ — $ — $ — $ 920 collectively evaluated for impairment 4,601 16,753 1,060 992 46 476 23,928 Total ending allowance balance $ 5,155 $ 17,119 $ 1,060 $ 992 $ 46 $ 476 $ 24,848 Loans: Ending balance: individually evaluated for impairment $ 641 $ 22,287 $ — $ 1,247 $ 47 $ 99 $ 24,321 collectively evaluated for impairment 256,874 1,190,826 116,919 82,048 12,002 30,123 1,688,792 Total ending loans balance $ 257,515 $ 1,213,113 $ 116,919 $ 83,295 $ 12,049 $ 30,222 $ 1,713,113 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total December 31, 2022 Allowance for loan losses: Ending balance: individually evaluated for impairment $ 653 $ 380 $ — $ — $ — $ — $ 1,033 collectively evaluated for impairment 4,857 13,984 1,252 345 63 298 20,799 Total ending allowance balance $ 5,510 $ 14,364 $ 1,252 $ 345 $ 63 $ 298 $ 21,832 Loans: Ending balance: individually evaluated for impairment $ 1,003 $ 22,956 $ — $ 1,254 $ 51 $ 104 $ 25,368 collectively evaluated for impairment 257,898 1,075,098 109,570 73,023 12,278 16,195 1,544,062 Total ending loans balance $ 258,901 $ 1,098,054 $ 109,570 $ 74,277 $ 12,329 $ 16,299 $ 1,569,430 Included in the commercial and industrial loans collectively evaluated for impairment are PPP loans of $1,535 and $1,717 as of June 30, 2023 and December 31, 2022, respectively. PPP loans receivable are guaranteed by the SBA and have no allocation in the allowance. The following tables present loans individually evaluated for impairment recognized by class of loans as of June 30, 2023 and December 31, 2022: Unpaid Allowance for Principal Recorded Credit Losses Balance Investment Allocated June 30, 2023 With no related allowance recorded Commercial and industrial (1) $ — $ — $ — Commercial real estate (2) 17,428 16,768 — Commercial real estate construction — — — Residential real estate (3) 1,260 1,247 — Home equity (4) 52 47 — Consumer 99 99 — Total $ 18,839 $ 18,161 $ — With an allowance recorded: Commercial and industrial (1) $ 931 $ 641 $ 554 Commercial real estate (2) 5,553 5,519 366 Commercial real estate construction — — — Residential real estate — — — Home equity — — — Consumer (5) — — — Total $ 6,484 $ 6,160 $ 920 (1) Commercial and industrial loans – secured by business assets and UCC filings (2) Commercial real estate – secured by various types of commercial real estate (3) Residential real estate – secured by residential real estate (4) Home equity – secured by residential real estate (5) Consumer – represents one personal loan Unpaid Allowance for Principal Recorded Loan Losses Balance Investment Allocated December 31, 2022 With no related allowance recorded Commercial and industrial $ — $ — $ — Commercial real estate 17,884 17,316 — Commercial real estate construction — — — Residential real estate 1,266 1,254 — Home equity 55 51 — Consumer — — — Total $ 19,205 $ 18,621 $ — With an allowance recorded: Commercial and industrial $ 1,011 $ 1,003 $ 653 Commercial real estate 5,665 5,640 380 Commercial real estate construction — — — Residential real estate — — — Home equity — — — Consumer 104 104 — Total $ 6,780 $ 6,747 $ 1,033 The following tables present the average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans for the three and six months ended June 30, 2023 and 2022: Three Months Ended Three Months Ended June 30, 2023 June 30, 2022 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized (1) Investment Recognized (1) With no related allowance recorded Commercial and industrial $ — $ — $ — $ — Commercial real estate 16,836 155 17,743 159 Commercial real estate construction 578 — 578 — Residential real estate 718 1 1,291 13 Home equity — — — — Consumer 101 1 — — Total $ 18,233 $ 157 $ 19,612 $ 172 With an allowance recorded: Commercial and industrial $ 5,970 $ 79 $ 20,334 $ 93 Commercial real estate 306 — 334 — Commercial real estate construction — — — — Residential real estate — — — — Home equity — — — — Consumer — — 110 1 Total $ 6,276 $ 79 $ 20,778 $ 94 (1) Cash basis interest income approximates interest income recognized. Six Months Ended Six Months Ended June 30, 2023 June 30, 2022 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized (1) Investment Recognized (1) With no related allowance recorded Commercial and industrial $ — $ — $ — $ — Commercial real estate 16,898 311 16,242 160 Commercial real estate construction 578 — 578 — Residential real estate 721 1 998 11 Home equity — — — — Consumer 102 3 — — Total $ 18,299 $ 315 $ 17,818 $ 171 With an allowance recorded: Commercial and industrial $ 6,091 $ 159 $ 10,833 $ 60 Commercial real estate 310 — 4,523 41 Commercial real estate construction — — — — Residential real estate — — — — Home equity — — — — Consumer — — 112 1 Total $ 6,401 $ 159 $ 15,468 $ 102 (1) Cash basis interest income approximates interest income recognized. The following table presents the recorded investment in non-accrual and loans past due over 90 days still on accrual by class of loans as of June 30, 2023 and December 31, 2022: Loans Past Due Over 90 Days Non-accrual Still Accruing June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 Commercial and industrial $ 641 $ 1,003 $ — $ 1,850 Commercial real estate 3,487 3,882 — — Commercial real estate construction — — — — Residential real estate 1,184 1,188 — — Home equity 47 51 — — Consumer — — 42 477 Total $ 5,359 $ 6,124 $ 42 $ 2,327 As of June 30, 2023, the Company held $5.4 million in non-accrual balances and a related ACL for approximately $655 . Within the non-accrual balances, The Company adopted ASU 2022-02, Financial Instruments – Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) effective January 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measurement of troubled debt restructurings and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty. The Company did not have any loans that were both experiencing financial difficulties and modified during the three months or six months ended June 30, 2023. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. The following tables present the aging of the recorded investment in past-due loans as of June 30, 2023 and December 31, 2022 by class of loans: The following tables present the aging of the recorded investment in past-due loans as of June 30, 2023 and December 31, 2022 by class of loans: 30-59 Days 60-89 Days Greater Than Total Loans Past Due Past Due 90 Days Past Due Not Past Due June 30, 2023 Commercial and industrial $ 520 $ 449 $ 641 $ 1,610 $ 255,905 Commercial real estate — 304 684 988 1,212,125 Commercial real estate construction — — — — 116,919 Residential real estate — 17 1,167 1,184 82,111 Home equity — — — — 12,049 Consumer 24 — 42 66 30,156 Total $ 544 $ 770 $ 2,534 $ 3,848 $ 1,709,265 30-59 Days 60-89 Days Greater Than Total Loans Past Due Past Due 90 Days Past Due Not Past Due December 31, 2022 Commercial and industrial $ 1,497 $ 1,583 $ 2,854 $ 5,934 $ 252,967 Commercial real estate 563 — 952 1,515 1,096,539 Commercial real estate construction — — — — 109,570 Residential real estate 2 — 1,188 1,190 73,087 Home equity — — — — 12,329 Consumer 584 634 476 1,694 14,605 Total $ 2,646 $ 2,217 $ 5,470 $ 10,333 $ 1,559,097 As of June 30, 2023 and December 31, 2022, loans in the process of foreclosure were $2,624 and $2,016 respectively, of which $1,167 and $578 were secured by residential real estate. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes loans with an outstanding balance greater than $350 thousand and non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on an annual basis. The Company uses the following definitions for risk ratings: Special Mention: Substandard: Doubtful: Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. The following table summarizes the Company’s loans by year of origination and internally assigned credit risk at June 30, 2023 and gross charge-offs for the six months ended June 30, 2023: Revolving Revolving Loans to 2023 2022 2021 2020 2019 Prior Loans Term Loans Total Commercial and industrial — Pass $ 21,104 59,580 62,576 46,548 26,500 39,414 — — $ 255,722 Special Mention — 91 — — — 676 — — 767 Substandard — 385 — 225 — 416 — — 1,026 Total Commercial and industrial $ 21,104 60,056 62,576 46,773 26,500 40,506 — — $ 257,515 Current period gross charge-offs 21 — — 285 — 28 — — 334 Commercial real estate Pass $ 135,254 331,624 238,086 167,199 96,362 219,800 2,351 — $ 1,190,676 Special Mention — — 438 — — 6,951 — — 7,389 Substandard — — — 2,499 6,278 6,271 — — 15,048 Total Commercial real estate $ 135,254 331,624 238,524 169,698 102,640 233,022 2,351 — $ 1,213,113 Current period gross charge-offs — — — — — — — — — Commercial real estate construction Pass $ 2,214 25,755 64,239 24,711 — — — — $ 116,919 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Commercial real estate construction $ 2,214 25,755 64,239 24,711 — — — — $ 116,919 Current period gross charge-offs — — — — — — — — — Residential real estate Pass $ 13,356 22,856 12,224 9,920 4,659 19,096 — — $ 82,111 Special Mention — — — — — — — — — Substandard — — — — 589 595 — — 1,184 Total Residential real estate $ 13,356 22,856 12,224 9,920 5,248 19,691 — — $ 83,295 Current period gross charge-offs — — — — — — — — — Home equity Pass $ 129 71 17 — 82 — 11,703 — $ 12,002 Special Mention — — — — — — — — — Substandard — — — — — — 47 — 47 Total Home Equity $ 129 71 17 — 82 — 11,750 — $ 12,049 Current period gross charge-offs — — — — — — — — — Consumer Pass $ 21,400 658 — 2,269 36 64 5,696 — $ 30,123 Special Mention — — — — — — — — — Substandard — — — — — 99 — — 99 Total Consumer $ 21,400 658 — 2,269 36 163 5,696 — $ 30,222 Current period gross charge-offs — — 11 — 25 — — — 36 Total Loans $ 193,457 441,020 377,580 253,371 134,506 293,382 19,797 — $ 1,713,113 Gross charge-offs $ 21 — 11 285 25 28 — — $ 370 Based on the analysis performed as of December 31, 2022, the risk category of loans by class of loans is as follows: Special Pass Mention Substandard Doubtful Loss Total December 31, 2022 Commercial and industrial $ 256,939 $ 575 $ 1,387 $ — $ — $ 258,901 Commercial real estate 1,074,952 7,399 15,703 — — 1,098,054 Commercial real estate construction 109,570 — — — — 109,570 Residential real estate 73,089 — 1,188 — — 74,277 Home equity 12,278 — 51 — — 12,329 Consumer 16,195 — 104 — — 16,299 Total $ 1,543,023 $ 7,974 $ 18,433 $ — $ — $ 1,569,430 Loans to certain directors and principal officers of the Company, including their immediate families and companies in which they are affiliated, amounted to $16,856 and $16,891 at June 30, 2023 and December 31, 2022, respectively.

Fair Value

Fair Value	6 Months Ended
Fair Value	Jun. 30, 2023
Fair Value
Fair Value	Note 4 — Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 Level Level 3 The Company used the following methods and significant assumptions to estimate fair value: Investment Securities: Individually Evaluated, or Collateral Dependent Loans and Other Real Estate Owned: Appraisals are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by a third-party appraisal management company that the Company has engaged in accordance with internal vendor management policies and approval of the Company’s Board of Directors. Once received, the appraisal review function is conducted by the appraisal management company and consists of a review of the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Through this review, the appraisal management company evaluates the validity of the appraised value and the strength of the conclusions; which are subsequently confirmed by a member of the Credit Department. Discounts to the appraised value are then applied to recognize the carrying costs incurred until disposition, realtor fees, deterioration in the quality of the asset, and the age of the appraisal. The net effect of these adjustments were included in the charge-off to the allowance upon acquisition of the foreclosed property and/or upon partial charge-off of the collateral dependent loan. The most recent analysis of property appraisals including the appropriate discount rates are incorporated into the allowance methodology for the respective loan portfolio segments. Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements Using: Quoted Prices in Active Markets Significant Other Significant Total at for Identical Observable Unobservable June 30, Assets Inputs Inputs 2023 (Level 1) (Level 2) (Level 3) U.S. government agencies and treasuries $ 89,331 $ — $ 89,331 $ — Mortgage-backed securities 304,555 — 304,555 — Corporate securities 19,906 — 19,906 — Obligations of states and political subdivisions 89,451 — 89,451 — Total securities available-for-sale $ 503,243 $ — $ 503,243 $ — There were no transfers between Level 1 and Level 2 during the three and six months ended June 30, 2023. Fair Value Measurements Using: Quoted Prices in Active Markets Significant Other Significant Total at for Identical Observable Unobservable December 31, Assets Inputs Inputs 2022 (Level 1) (Level 2) (Level 3) U.S. government agencies and treasuries 93,750 $ — $ 93,750 $ — Mortgage-backed securities 316,915 — 316,915 — Corporate securities 25,658 — 25,658 — Obligations of states and political subdivisions 97,138 — 97,138 — Total securities available-for-sale $ 533,461 $ — $ 533,461 $ — There were no transfers between Level 1 and Level 2 during 2022. Assets measured at fair value on a non-recurring basis as of June 30, 2023 and December 31, 2022 are summarized below: Fair Value Measurements Using: Quoted Prices Significant in Active Other Significant Total at Markets for Observable Unobservable June 30, 2023 Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Individually Evaluated Loans - Commercial Real Estate $ 204 $ — $ — $ 204 Fair Value Measurements Using: Quoted Prices Significant in Active Other Significant Total at Markets for Observable Unobservable December 31, 2022 Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Impaired loans $ 204 $ — $ — $ 204 The fair value amounts shown in the above table are individually evaluated loans net of reserves allocated to said loans. The total reserves allocated to these loans were $101 and $112 at June 30, 2023 and December 31, 2022, respectively. The following table presents additional quantitative information about level 3 fair value measured at fair value on a non-recurring basis at June 30, 2023 and December 31, 2022: Fair Value Range June 30, 2023 Value Valuation Technique Unobservable Input (Weighted Average) Individually Evaluated Loans - Commercial Real Estate $ 204 Appraisal of collateral (1) Appraisal and liquidation 20% adjustments (2) (20%) Fair Value Range December 31, 2022 Value Valuation Technique Unobservable Input (Weighted Average) Impaired loans - Commercial Real Estate $ 204 Appraisal of collateral (1) Appraisal and liquidation 20% adjustments (2) (20%) (1) Fair value is generally determined through independent appraisals of the underlying collateral that generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. The carrying amounts and estimated fair values of the Company’s financial instruments not carried at fair value are as follows at June 30, 2023 and December 31, 2022: June 30, 2023 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 178,619 $ 178,619 $ 178,619 $ — $ — Loans, net 1,688,265 1,608,144 — — 1,608,144 Accrued interest receivable 5,808 5,808 — 2,318 3,490 Restricted investment in bank stocks 11,494 NA — — — Financial liabilities: Deposits 2,138,238 2,136,795 1,978,683 158,112 — FHLB advances, short term 156,500 156,151 156,151 FHLB advances, long term 10,000 9,788 — 9,788 — Subordinated notes, net of issuance costs 19,484 24,198 — 24,198 — Accrued interest payable 589 589 — 589 — December 31, 2022 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 86,081 $ 86,081 $ 86,081 $ — $ — Loans, net 1,547,598 1,503,543 — — 1,503,543 Accrued interest receivable 6,320 6,320 — 2,448 3,872 Restricted investment in bank stocks 9,562 NA — — — Financial liabilities: Deposits 1,974,387 1,972,387 1,881,354 91,033 — FHLB advances, short term 131,500 131,255 — 131,255 — Subordinated notes, net of issuance costs 19,447 19,682 — 19,682 — Accrued interest payable 267 267 — 267 —

Deposits

Deposits	6 Months Ended
Deposits	Jun. 30, 2023
Deposits
Deposits	Note 5 — Deposits A summarized analysis of the Bank’s deposits at June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 Non-interest bearing demand accounts $ 715,630 $ 723,228 Interest-bearing demand accounts 357,494 284,747 Money market accounts 647,073 615,149 Savings accounts 258,462 258,230 Certificates of Deposit 159,579 93,033 Total deposits $ 2,138,238 $ 1,974,387 Time deposits that meet or exceed the FDIC insurance limit of $250 at June 30, 2023 and December 31, 2022 were $12,094 and $17,015, respectively. Uninsured deposits, net of fully collateralized municipal relationships, as of June 30, 2023 and December 31, 2022 totaled $819 million and $871 million, respectively. Scheduled maturities of time deposits for the next five years as of June 30, 2023, are as follows: 2023 $ 138,348 2024 11,665 2025 8,107 2026 1,459 $ 159,579 Deposits of executive officers, directors and principal officers of the Company, including their immediate families and companies in which they are affiliated, amounted to $7.7 million and $15.6 million at June 30, 2023 and December 31, 2022, respectively.

Pension Plan and Stock Compensa

Pension Plan and Stock Compensation	6 Months Ended
Pension Plan and Stock Compensation	Jun. 30, 2023
Pension Plan and Stock Compensation
Pension Plan and Stock Compensation	Note 6 — Pension Plan and Stock Compensation The Bank has a funded noncontributory defined benefit pension plan that covers substantially all employees meeting certain eligibility requirements. The pension plan was closed to new participants and benefit accruals were frozen as of December 31, 2015. The plan provides defined benefits based on years of service and final average salary. The components of net periodic benefit cost for the Company’s noncontributory defined benefit pension plan for the three and six months ended June 30, 2023 and 2022 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Service cost $ — $ — $ — $ — Interest cost 279 202 557 404 Expected return on plan assets (411) (496) (822) (992) Amortization of transition cost — (7) — (14) Amortization of net loss 70 — 141 — Net periodic benefit cost/(income) $ (62) $ (301) $ (124) $ (602) The Company has a time based restricted stock plan. For the three months ended June 30, 2023 and 2022, the Company’s recognized stock-based compensation costs were $8 and $33 , respectively. For the six months ended June 30, 2023 and 2022 the Company’s recognized stock-based compensation costs of , respectively. The Company uses the fair value of the common stock on the date of award to measure compensation cost for restricted stock awards. Compensation cost is recognized over the vesting period of the award using the straight line method. There were restricted stock grants made during the three and six months ended June 30, 2023 and 2022. The grants generally vest at the rate of A summary of the Company’s restricted stock awards activity for the six months ended June 30, 2023 is presented below: Weighted Average Fair Shares Value Non-vested at beginning of period 11,677 $ 29.24 Granted — $ Vested (7,569) $ 29.50 Forfeited (414) $ 28.75 Non-vested at end of period 3,694 $ 28.75 On September 22, 2021 restricted stock units (RSUs) were granted in the amount of from the Company s 2019 Equity Incentive Plan to officers of the Bank and HVIA and directors of the Company in connection with the successful completion of the Company s initial public stock offering, listing on the NASDAQ Capital Market and the recent past years success experienced by the Bank. Non-employee directors received 16,500 restricted stock units while officers received 31,504 restricted stock units. The restricted stock units granted to officers will vest over three years in approximately 33% increments on the first, second and third anniversary of the date of grant. The restricted stock units granted to nonemployee directors are 100% vested as of the date of grant and are settled in shares of Company common stock upon separation from service. In addition, the Company made a discretionary contribution of $200,000 to the Company s KSOP Trust and purchased shares of the Company s common stock in the open market for the benefit of all eligible non-highly compensated employees who remain employed by the Company, Bank or HVIA as of December 31, 2021. The following table summarizes the activity of RSUs during the six months ended June 30, 2023: Restricted Stock Units Non-vested RSUs at beginning of period 59,747 Granted 22,650 Vested (8,486) Forfeited (4,725) Non-vested RSUs at end of period 69,186

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
Accumulated Other Comprehensive Income (Loss)	Jun. 30, 2023
Accumulated Other Comprehensive Income (Loss).
Accumulated Other Comprehensive Income (Loss)	Note 7 — Accumulated Other Comprehensive Income (Loss) The following is a summary of changes in accumulated other comprehensive income (loss) by component, net of tax, for the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, 2023 Unrealized Gains and Losses on Deferred Available-for- Defined Benefit Compensation Sale Securities Pension Items Liability Total Beginning balance $ (50,800) $ (7,494) $ 120 $ (58,174) Other comprehensive income/(loss) before reclassification, net (8,677) 395 (3) (8,285) Credit loss expense — — Less amounts reclassified from accumulated other comprehensive income — — — — Net current period other comprehensive income/(loss) (8,677) 395 (3) (8,285) Ending balance $ (59,477) $ (7,099) $ 117 $ (66,459) Six Months Ended June 30, 2023 Unrealized Gains and Losses on Deferred Available-for- Defined Benefit Compensation Sale Securities Pension Items Liability Total Beginning balance $ (60,430) $ (7,889) $ 123 $ (68,196) Other comprehensive income/(loss) before reclassification (3,960) 790 (6) (3,176) Credit loss expense 5,000 5,000 Less amounts reclassified from accumulated other comprehensive income (87) — — (87) Net current period other comprehensive income/(loss) 953 790 (6) 1,737 Ending balance $ (59,477) $ (7,099) $ 117 $ (66,459) Three Months Ended June 30, 2022 Unrealized Gains and Losses on Deferred Available-for- Defined Benefit Compensation Sale Securities Pension Items Liability Total Beginning balance $ (23,666) $ (2,308) $ 132 $ (25,842) Other comprehensive income/(loss) before reclassification (20,114) 206 (3) (19,911) Less amounts reclassified from accumulated other comprehensive income — 8 — 8 Net current period other comprehensive income/(loss) (20,114) 198 (3) (19,919) Ending balance $ (43,780) $ (2,110) $ 129 $ (45,761) Six Months Ended June 30, 2022 Unrealized Gains and Losses on Deferred Available-for- Defined Benefit Compensation Sale Securities Pension Items Liability Total Beginning balance $ (1,072) $ (2,506) $ 135 $ (3,443) Other comprehensive income/(loss) before reclassification (42,708) 412 (6) (42,302) Less amounts reclassified from accumulated other comprehensive income — 16 16 Net current period other comprehensive income/(loss) (42,708) 396 (6) (42,318) Ending balance $ (43,780) $ (2,110) $ 129 $ (45,761) The following reflects significant amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2023 and 2022: Affected Line Item Amount Reclassified from Accumulated Other Comprehensive Income in the Statement where Net Income is Presented Three Months Ended June 30, Six Months Ended June 30, Details about Accumulated Other Comprehensive Income Components 2023 2022 2023 2022 Unrealized gains and losses on available-for-sale securities Realized gains on securities available-for-sale $ — $ — $ 107 $ — Investment security gains (losses) Total before tax — — 107 — Tax effect — — 20 — Provision for income taxes Net of tax $ — $ — $ 87 $ — Amortization of defined benefit pension items Transition asset $ — $ (7) $ — $ (14) Other expense Actuarial gains (losses) — — — — Other expense Total before tax — (7) — (14) Tax effect — (1) — (2) Provision for income taxes Net of tax $ — $ (8) $ — $ (16) - Total reclassifications for the period, net of tax $ — $ (8) $ 87 $ (16)

Revenue from Contracts with Cus

Revenue from Contracts with Customers	6 Months Ended
Revenue from Contracts with Customers	Jun. 30, 2023
Revenue from Contracts with Customers
Revenue from Contracts with Customers	Note 8 — Revenue from Contracts with Customers All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. The following table presents the Company’s gross sources of noninterest income for the three and six months ended June 30, 2023 and 2022. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Noninterest Income Service charges on deposit accounts $ $ Overdraft fees 107 72 $ 188 $ 146 Other 98 89 190 183 Trust income 1,265 1,223 2,441 2,393 Investment advisory income 1,289 1,099 2,486 2,300 Investment securities gains (losses) (a) — — 107 — Earnings on bank owned life insurance (a) 244 236 482 469 Other (b) 283 258 562 491 Total Noninterest Income $ 3,286 $ 2,977 $ 6,456 $ 5,982 (a) Not within the scope of ASC 606. (b) The Other category includes safe deposit income, checkbook fees, and debit card fee income, totaling $235 and $222 for the three months ended June 30, 2023 and 2022, respectively, and $467 and $413 for the six months ended June 30, 2023 and 2022, that are within the scope of ASC 606 and loan related fee income and miscellaneous income, totaling $48 and $35 for the three months ended June 30, 2023 and 2022, respectively, and the $95 and $78 for the six months ended June 30, 2023 and 2022 which are outside the scope of ASC 606. The Company earns wealth management fees, which includes trust income and investment advisory income, from its contracts with trust and brokerage customers to manage assets for investment, and/or to transact on their accounts. These fees are primarily earned over time as the Company provides the contracted services and are generally assessed based on a tiered scale of the market value of the assets under management at month-end or quarter-end.

Segment Information

Segment Information	6 Months Ended
Segment Information	Jun. 30, 2023
Segment Information
Segment Information	Note 9 — Segment Information The reportable segments are determined by the products and services offered by the Company, primarily distinguished between banking and wealth management. Loans, investments, and deposits provide the revenues in the banking operation, and trust fees and investment management fees provide the revenues in wealth management. All operations are domestic. Significant segment totals are reconciled to the financial statements as follows: For the three months ended June 30, 2023 For the six months ended June 30, 2023 Banking Wealth Management Total Segments Banking Wealth Management Total Segments Net interest income $ 22,602 $ — $ 22,602 $ 43,741 $ — $ 43,741 Noninterest income 733 2,553 3,286 1,528 4,928 6,456 Provision for credit loss - investments — — — (5,000) (5,000) Provision for credit loss (214) — (214) (1,569) — (1,569) Noninterest expenses (12,275) (2,172) (14,447) (24,489) (3,986) (28,475) Income tax expense (2,061) (80) (2,141) (2,639) (198) (2,837) Net income $ 8,785 $ 301 $ 9,086 $ 11,572 $ 744 $ 12,316 Total assets $ 2,485,549 $ 8,360 $ 2,493,909 $ 2,485,549 $ 8,360 $ 2,493,909 For the three months ended June 30, 2022 For the six months ended June 30, 2022 Banking Wealth Management Total Segments Banking Wealth Management Total Segments Net interest income $ 17,509 $ — $ 17,509 $ 33,848 $ — $ 33,848 Noninterest income 654 2,323 2,977 1,289 4,693 5,982 Provision for loan loss (5,510) — (5,510) (6,433) — (6,433) Noninterest expenses (10,642) (1,824) (12,466) (20,573) (3,714) (24,287) Income tax expense (295) (105) (400) (1,464) (206) (1,670) Net income $ 1,716 $ 394 $ 2,110 $ 6,667 $ 773 $ 7,440 Total assets $ 2,384,424 $ 7,625 $ 2,392,049 $ 2,384,424 7,625 $ 2,392,049

Regulatory Capital Matters

Regulatory Capital Matters	6 Months Ended
Regulatory Capital Matters	Jun. 30, 2023
Regulatory Capital Matters
Regulatory Capital Matters	Note 10 — Regulatory Capital Matters The Bank is subject to regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines and prompt corrective regulations involve quantitative measures of assets, liabilities and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgements by regulators. Failure to meet the minimum capital requirements can initiate regulatory action. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks, (Basel III rules), became effective for the Bank on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. Under the Basel III rules, the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The regulations limit capital distributions and certain discretionary bonus payments to management if the institution does not hold a “capital conservation buffer.” The capital conservation buffer is 2.5%. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion and capital restoration plans are required. Capital levels at June 30, 2023 and at December 31, 2022 exceeded the regulatory minimum levels for the Bank to be considered well capitalized under the prompt corrective action regulations. Actual and required capital amounts and ratios are presented below at June 30, 2023 and December 31, 2022 for the Bank. To be Well Capitalized For Capital Adequacy For Capital Adequacy under Prompt Actual Purposes Purposes with Capital Buffer Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio June 30, 2023 Total capital to risk weighted assets $ 245,896 13.47 % $ 146,032 8.00 % $ 180,258 9.875 % $ 182,540 10.00 % Tier 1 (Core) capital to risk weighted assets 223,047 12.22 % 109,524 6.00 % 143,750 7.875 % 146,032 8.00 % Common Tier 1 (CET1) to risk weighted assets 223,047 12.22 % 82,143 4.50 % 116,369 6.375 % 118,651 6.50 % Tier 1 (Core) Capital to average assets 223,047 8.86 % 100,709 4.00 % N/A N/A 125,887 5.00 % December 31, 2022 Total capital to risk weighted assets $ 235,346 13.95 % $ 134,986 8.00 % $ 166,624 9.875 % $ 168,733 10.00 % Tier 1 (Core) capital to risk weighted assets 214,243 12.70 % 101,240 6.00 % 132,877 7.875 % 134,986 8.00 % Common Tier 1 (CET1) to risk weighted assets 214,243 12.70 % 75,930 4.50 % 107,567 6.375 % 109,677 6.50 % Tier 1 (Core) Capital to average assets 214,243 9.09 % 94,250 4.00 % N/A N/A 117,813 5.00 %

Nature of Operations and Summ_2

Nature of Operations and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
Nature of Operations and Summary of Significant Accounting Policies
Nature of Operations and Principles of Consolidation	Nature of Operations and Principles of Consolidation: The Company provides commercial and consumer banking services to individuals, small businesses and local municipal governments as well as trust and investment services through the Bank and HVIA. The Company is headquartered in Middletown, New York, with eight locations in Orange County, New York, seven in Westchester County, New York, two in Rockland County, New York, and one in Bronx County, New York. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are commercial real estate, commercial and residential mortgage loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. There are no significant concentrations of loans to any one industry or customer. However, the customers’ ability to repay their loans is dependent on the real estate and general economic conditions in the areas in which they operate. Assets held by the Company in an agency or fiduciary capacity for its customers are excluded from the consolidated financial statements since they do not constitute assets of the Company. Assets held by the Company in an agency or fiduciary capacity for its customers amounted to $1.4 billion and $1.3 billion at June 30, 2023 and December 31, 2022, respectively. Certain information and footnote disclosures normally included in the audited consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2022 for Orange County Bancorp, Inc. contained in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 24, 2023. In the opinion of the management of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting solely of normal and recurring accruals) necessary to present fairly the financial position as of June 30, 2023, the results of operations, comprehensive income/(loss), changes in stockholders’ equity for the three and six months ended June 30, 2023 and 2022 and cash flow statements for the six months ended June 30, 2023 and 2022. The results of operations for any interim period are not necessarily indicative of the results that may be expected for the full year or for any future period. Certain reclassifications have been made to the financial statements to conform with prior period presentations.
Use of Estimates	Use of Estimates:
Recent Accounting Pronouncements	Recent Accounting Pronouncements
Financial instruments credit losses	The Company adopted ASU 2016-13 on January 1, 2023 for all financial assets measured at amortized cost and off-balance sheet credit exposures using the modified retrospective method. Results for the three and six months ended June 30, 2023 are presented under Accounting Standards Codification 326, Financial Instruments – Credit Losses, while prior period amounts continue to be reported with previously applicable GAAP and have not been restated. Effective January 1, 2023, the Company recorded a $1.9 million increase in allowance for credit losses on loans that is referred to as the current expected credit loss (“CECL”) methodology (previously allowance for loan losses), an adjustment of $1.4 million recording reserves related to loans, and a $520 thousand increase related to allowance for off balance sheet credit exposures included in other liabilities section of the consolidated statements of financial condition, which resulted in a total cumulative effect adjustment of $1.6 million, net of tax, and a decrease to retained earnings, a component of the stockholders’ equity. Further information regarding the impact of CECL can be found in Note 3 – Loans and Allowance for Credit Losses. The Company adopted ASU 2022-02, Financial Instruments – Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) prospectively effective January 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measurement of troubled debt restructurings and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty. The Company did not have any loans that were both experiencing financial difficulties and modified during the three and six months ended June 30, 2023. Allowance for Credit Losses On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326) (“ASU 2016-13”), which replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan and lease receivables and held-to-maturity securities. It also applies to off-balance sheet credit exposures (loan commitments, standby letters of credit, financial guarantees, and other similar instruments). In addition, Accounting Standards Codification (“ASC”) 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities which management does not intend to sell or believes that it is more likely than not they will be required to sell. The allowance for credit losses represents the estimated amount considered necessary to cover lifetime expected credit losses inherent in financial assets at the balance sheet date. The measurement of expected credit losses is applicable to loans receivable and securities measured at amortized cost. It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of credit. The allowance is established through a provision for credit losses that is charged against income. The methodology for determining the allowance for credit losses is considered a critical accounting policy by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment that could result in changes to the amount of the recorded allowance for credit losses. The allowance for credit losses is reported separately as a contra-asset on the consolidated statement of financial condition. The expected credit loss for unfunded lending commitments and unfunded loan commitments is reported on the Consolidated Statement of Financial Condition in other liabilities and is recorded within the provision for credit losses. Allowance for Credit Losses on Loans Receivable The allowance for credit losses on loans is deducted from the amortized cost basis of the loan to present the net amount expected to be collected. Expected losses are evaluated and calculated on a collective, or pooled, basis for those loans which share similar risk characteristics. If the loan does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. Individually evaluated loans are primarily non-accrual and collateral dependent loans. Furthermore, the Company evaluates the pooling methodology at least annually to ensure that loans with similar risk characteristics are pooled appropriately. Loans are charged off against the allowance for credit losses when the Company believes the balances to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off. The Company does not estimate expected losses on accrued interest receivable on loans, as accrued interest receivable is reversed or written off when the full collection of the accrued interest receivable related to a loan becomes doubtful. The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk. The Company calculates estimated credit losses for these loan segments using quantitative models and qualitative factors. Further information on loan segmentation and the credit loss estimation is included in Note 3 – Loans and Allowance for Credit Losses. Individually Evaluated Loans On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on its disparate risk characteristics. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan. Allowance for Credit Losses on Off-Balance Sheet Commitments The Company is required to include unfunded commitments that are expected to be funded in the future within the allowance calculation, other than those that are unconditionally cancelable. To arrive at that reserve, the reserve percentage for each applicable segment is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate. As noted above, the allowance for credit losses on unfunded loan commitments is included in other liabilities on the consolidated statement of financial condition and the related credit expense is recorded as provisions for credit losses in the consolidated statements of income. Allowance for Credit Losses on Available for Sale Securities For available for sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more than likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available for sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of tax. Changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. The Company does not estimate expected losses on accrued interest receivable on investments, as accrued interest receivable is reversed or written off when the full collection of the accrued interest receivable related to an investment becomes doubtful.

Investment Securities (Tables)

Investment Securities (Tables)	6 Months Ended
Investment Securities (Tables)	Jun. 30, 2023
Investment Securities
Schedule of amortized cost and fair value of investment securities	Gross Gross Amortized Unrealized Unrealized ACL Fair Cost Gains Losses Adjustment Value Available-for-sale June 30, 2023 U.S. government agencies and treasuries $ 100,087 $ 20 $ (10,776) $ — $ 89,331 Mortgage-backed securities 352,046 13 (47,504) — 304,555 Corporate Securities 23,539 — (3,633) — 19,906 Obligations of states and political subdivisions 102,858 26 (13,433) — 89,451 Total debt securities $ 578,530 $ 59 $ (75,346) $ — $ 503,243 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale December 31, 2022 U.S. government agencies and treasuries $ 104,734 $ 25 $ (11,009) $ 93,750 Mortgage-backed securities 364,690 17 (47,792) 316,915 Corporate Securities 28,559 — (2,901) 25,658 Obligations of states and political subdivisions 111,971 48 (14,881) 97,138 Total debt securities $ 609,954 $ 90 $ (76,583) $ 533,461
Schedule of sales of securities gains and losses	Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Proceeds $ — $ — $ 7,296 $ — Gross realized gains $ — $ — $ 130 $ — Gross realized losses — — 23 — Net gain on sales of securities — — 107 — Tax provision on realized net gains and loss — — 20 — Net gain on sales of securities, after tax $ — $ — $ 87 $ —
Schedule of contractual maturities of debt securities	Available-for-sale Amortized Fair Cost Value Due in one year or less $ 6,877 $ 6,787 Due after one through five years 22,558 21,144 Due after five through ten years 62,095 53,580 Due after ten years 134,954 117,177 226,484 198,688 Mortgage-backed securities 352,046 304,555 Total debt securities $ 578,530 $ 503,243
Schedule of securities with unrealized and unrecognized losses	Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Available-for-sale June 30, 2023 U.S. government agencies and treasuries $ 29,342 $ (1,100) $ 55,696 $ (9,676) $ 85,038 $ (10,776) Mortgage-backed securities 18,630 (424) 284,909 (47,080) 303,539 (47,504) Corporate Securities 3,968 (532) 15,938 (3,101) 19,906 (3,633) Obligations of states and political subdivisions 5,210 (181) 81,206 (13,252) 86,416 (13,433) Total debt securities $ 57,150 $ (2,237) $ 437,749 $ (73,109) $ 494,899 $ (75,346) Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Available-for-sale December 31, 2022 U.S. government agencies $ 47,064 $ (2,414) $ 41,718 $ (8,595) $ 88,782 $ (11,009) Mortgage-backed securities 150,542 (12,139) 165,336 (35,653) 315,878 (47,792) Corporate Securities 12,503 (1,007) 13,155 (1,894) 25,658 (2,901) Obligations of states and political subdivisions 57,287 (6,763) 32,479 (8,118) 89,766 (14,881) Total debt securities $ 267,396 $ (22,323) $ 252,688 $ (54,260) $ 520,084 $ (76,583)
Schedule of allowance for credit loss - investments activity	Allowance for credit losses -investments: Beginning balance $ — Provision for loan losses 5,000 Charge-offs 5,000 Recoveries — Ending balance $ —

Loans (Tables)

Loans (Tables)	6 Months Ended
Loans (Tables)	Jun. 30, 2023
Loans
Schedule of loans	June 30, 2023 December 31, 2022 Commercial and industrial $ 257,515 $ 258,901 Commercial real estate 1,213,113 1,098,054 Commercial real estate construction 116,919 109,570 Residential real estate 83,295 74,277 Home equity 12,049 12,329 Consumer 30,222 16,299 Total Loans $ 1,713,113 $ 1,569,430 Allowance for credit losses (24,848) (21,832) Net Loans $ 1,688,265 $ 1,547,598
Schedule of activity in the allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method	The following tables present the activity in the allowance by portfolio segment for each of the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, 2023 Commercial Commercial And Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total Allowance for credit losses: Beginning balance $ 5,141 $ 16,698 $ 1,625 $ 1,048 $ 72 $ 142 $ 24,726 Provision for credit losses 186 421 (565) (56) (26) 254 214 Charge-offs (192) — — — — — (192) Recoveries 20 — — — — 80 100 Ending balance $ 5,155 $ 17,119 $ 1,060 $ 992 $ 46 $ 476 $ 24,848 Six Months Ended June 30, 2023 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total Allowance for loan losses: Beginning balance, prior to adoption of ASC 326 $ 5,510 $ 14,364 $ 1,252 $ 345 $ 63 $ 298 $ 21,832 Impact of adopting ASC 326 72 1,737 (8) (227) (17) (129) 1,428 Provision for loan losses (151) 1,005 (184) 874 — 203 1,747 Charge-offs (334) — — — — (36) (370) Recoveries 58 13 — — — 140 211 Ending balance $ 5,155 $ 17,119 $ 1,060 $ 992 $ 46 $ 476 $ 24,848 Three Months Ended June 30, 2022 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total Allowance for loan losses: Beginning balance $ 5,408 $ 11,073 $ 1,296 $ 294 $ 69 $ 287 $ 18,427 Provision for loan losses 3,944 1,230 22 56 (1) 259 5,510 Charge-offs (29) — — (51) — (260) (340) Recoveries 9 — — — — 36 45 Ending balance $ 9,332 $ 12,303 $ 1,318 $ 299 $ 68 $ 322 $ 23,642 Six Months Ended June 30, 2022 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total Allowance for loan losses: Beginning balance $ 4,901 $ 11,183 $ 964 $ 272 $ 80 $ 261 $ 17,661 Provision for loan losses 4,492 1,120 354 78 (12) 401 6,433 Charge-offs (76) — — (51) — (380) (507) Recoveries 15 — — — — 40 55 Ending balance $ 9,332 $ 12,303 $ 1,318 $ 299 $ 68 $ 322 $ 23,642 The following tables present the balance in the allowance and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2023 and December 31, 2022: Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total June 30, 2023 Allowance for credit losses: Ending balance: individually evaluated for impairment $ 554 $ 366 $ — $ — $ — $ — $ 920 collectively evaluated for impairment 4,601 16,753 1,060 992 46 476 23,928 Total ending allowance balance $ 5,155 $ 17,119 $ 1,060 $ 992 $ 46 $ 476 $ 24,848 Loans: Ending balance: individually evaluated for impairment $ 641 $ 22,287 $ — $ 1,247 $ 47 $ 99 $ 24,321 collectively evaluated for impairment 256,874 1,190,826 116,919 82,048 12,002 30,123 1,688,792 Total ending loans balance $ 257,515 $ 1,213,113 $ 116,919 $ 83,295 $ 12,049 $ 30,222 $ 1,713,113 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total December 31, 2022 Allowance for loan losses: Ending balance: individually evaluated for impairment $ 653 $ 380 $ — $ — $ — $ — $ 1,033 collectively evaluated for impairment 4,857 13,984 1,252 345 63 298 20,799 Total ending allowance balance $ 5,510 $ 14,364 $ 1,252 $ 345 $ 63 $ 298 $ 21,832 Loans: Ending balance: individually evaluated for impairment $ 1,003 $ 22,956 $ — $ 1,254 $ 51 $ 104 $ 25,368 collectively evaluated for impairment 257,898 1,075,098 109,570 73,023 12,278 16,195 1,544,062 Total ending loans balance $ 258,901 $ 1,098,054 $ 109,570 $ 74,277 $ 12,329 $ 16,299 $ 1,569,430
Schedule of average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans	The following tables present loans individually evaluated for impairment recognized by class of loans as of June 30, 2023 and December 31, 2022: Unpaid Allowance for Principal Recorded Credit Losses Balance Investment Allocated June 30, 2023 With no related allowance recorded Commercial and industrial (1) $ — $ — $ — Commercial real estate (2) 17,428 16,768 — Commercial real estate construction — — — Residential real estate (3) 1,260 1,247 — Home equity (4) 52 47 — Consumer 99 99 — Total $ 18,839 $ 18,161 $ — With an allowance recorded: Commercial and industrial (1) $ 931 $ 641 $ 554 Commercial real estate (2) 5,553 5,519 366 Commercial real estate construction — — — Residential real estate — — — Home equity — — — Consumer (5) — — — Total $ 6,484 $ 6,160 $ 920 (1) Commercial and industrial loans – secured by business assets and UCC filings (2) Commercial real estate – secured by various types of commercial real estate (3) Residential real estate – secured by residential real estate (4) Home equity – secured by residential real estate (5) Consumer – represents one personal loan Unpaid Allowance for Principal Recorded Loan Losses Balance Investment Allocated December 31, 2022 With no related allowance recorded Commercial and industrial $ — $ — $ — Commercial real estate 17,884 17,316 — Commercial real estate construction — — — Residential real estate 1,266 1,254 — Home equity 55 51 — Consumer — — — Total $ 19,205 $ 18,621 $ — With an allowance recorded: Commercial and industrial $ 1,011 $ 1,003 $ 653 Commercial real estate 5,665 5,640 380 Commercial real estate construction — — — Residential real estate — — — Home equity — — — Consumer 104 104 — Total $ 6,780 $ 6,747 $ 1,033 The following tables present the average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans for the three and six months ended June 30, 2023 and 2022: Three Months Ended Three Months Ended June 30, 2023 June 30, 2022 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized (1) Investment Recognized (1) With no related allowance recorded Commercial and industrial $ — $ — $ — $ — Commercial real estate 16,836 155 17,743 159 Commercial real estate construction 578 — 578 — Residential real estate 718 1 1,291 13 Home equity — — — — Consumer 101 1 — — Total $ 18,233 $ 157 $ 19,612 $ 172 With an allowance recorded: Commercial and industrial $ 5,970 $ 79 $ 20,334 $ 93 Commercial real estate 306 — 334 — Commercial real estate construction — — — — Residential real estate — — — — Home equity — — — — Consumer — — 110 1 Total $ 6,276 $ 79 $ 20,778 $ 94 (1) Cash basis interest income approximates interest income recognized. Six Months Ended Six Months Ended June 30, 2023 June 30, 2022 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized (1) Investment Recognized (1) With no related allowance recorded Commercial and industrial $ — $ — $ — $ — Commercial real estate 16,898 311 16,242 160 Commercial real estate construction 578 — 578 — Residential real estate 721 1 998 11 Home equity — — — — Consumer 102 3 — — Total $ 18,299 $ 315 $ 17,818 $ 171 With an allowance recorded: Commercial and industrial $ 6,091 $ 159 $ 10,833 $ 60 Commercial real estate 310 — 4,523 41 Commercial real estate construction — — — — Residential real estate — — — — Home equity — — — — Consumer — — 112 1 Total $ 6,401 $ 159 $ 15,468 $ 102 (1) Cash basis interest income approximates interest income recognized.
Schedule of recorded investment in non-accrual and loans past due over 90 days still on accrual by class of loans	Loans Past Due Over 90 Days Non-accrual Still Accruing June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 Commercial and industrial $ 641 $ 1,003 $ — $ 1,850 Commercial real estate 3,487 3,882 — — Commercial real estate construction — — — — Residential real estate 1,184 1,188 — — Home equity 47 51 — — Consumer — — 42 477 Total $ 5,359 $ 6,124 $ 42 $ 2,327
Schedule of aging of the recorded investment in past-due loans	The following tables present the aging of the recorded investment in past-due loans as of June 30, 2023 and December 31, 2022 by class of loans: 30-59 Days 60-89 Days Greater Than Total Loans Past Due Past Due 90 Days Past Due Not Past Due June 30, 2023 Commercial and industrial $ 520 $ 449 $ 641 $ 1,610 $ 255,905 Commercial real estate — 304 684 988 1,212,125 Commercial real estate construction — — — — 116,919 Residential real estate — 17 1,167 1,184 82,111 Home equity — — — — 12,049 Consumer 24 — 42 66 30,156 Total $ 544 $ 770 $ 2,534 $ 3,848 $ 1,709,265 30-59 Days 60-89 Days Greater Than Total Loans Past Due Past Due 90 Days Past Due Not Past Due December 31, 2022 Commercial and industrial $ 1,497 $ 1,583 $ 2,854 $ 5,934 $ 252,967 Commercial real estate 563 — 952 1,515 1,096,539 Commercial real estate construction — — — — 109,570 Residential real estate 2 — 1,188 1,190 73,087 Home equity — — — — 12,329 Consumer 584 634 476 1,694 14,605 Total $ 2,646 $ 2,217 $ 5,470 $ 10,333 $ 1,559,097
Schedule of risk category of loans by class of loans	The following table summarizes the Company’s loans by year of origination and internally assigned credit risk at June 30, 2023 and gross charge-offs for the six months ended June 30, 2023: Revolving Revolving Loans to 2023 2022 2021 2020 2019 Prior Loans Term Loans Total Commercial and industrial — Pass $ 21,104 59,580 62,576 46,548 26,500 39,414 — — $ 255,722 Special Mention — 91 — — — 676 — — 767 Substandard — 385 — 225 — 416 — — 1,026 Total Commercial and industrial $ 21,104 60,056 62,576 46,773 26,500 40,506 — — $ 257,515 Current period gross charge-offs 21 — — 285 — 28 — — 334 Commercial real estate Pass $ 135,254 331,624 238,086 167,199 96,362 219,800 2,351 — $ 1,190,676 Special Mention — — 438 — — 6,951 — — 7,389 Substandard — — — 2,499 6,278 6,271 — — 15,048 Total Commercial real estate $ 135,254 331,624 238,524 169,698 102,640 233,022 2,351 — $ 1,213,113 Current period gross charge-offs — — — — — — — — — Commercial real estate construction Pass $ 2,214 25,755 64,239 24,711 — — — — $ 116,919 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Commercial real estate construction $ 2,214 25,755 64,239 24,711 — — — — $ 116,919 Current period gross charge-offs — — — — — — — — — Residential real estate Pass $ 13,356 22,856 12,224 9,920 4,659 19,096 — — $ 82,111 Special Mention — — — — — — — — — Substandard — — — — 589 595 — — 1,184 Total Residential real estate $ 13,356 22,856 12,224 9,920 5,248 19,691 — — $ 83,295 Current period gross charge-offs — — — — — — — — — Home equity Pass $ 129 71 17 — 82 — 11,703 — $ 12,002 Special Mention — — — — — — — — — Substandard — — — — — — 47 — 47 Total Home Equity $ 129 71 17 — 82 — 11,750 — $ 12,049 Current period gross charge-offs — — — — — — — — — Consumer Pass $ 21,400 658 — 2,269 36 64 5,696 — $ 30,123 Special Mention — — — — — — — — — Substandard — — — — — 99 — — 99 Total Consumer $ 21,400 658 — 2,269 36 163 5,696 — $ 30,222 Current period gross charge-offs — — 11 — 25 — — — 36 Total Loans $ 193,457 441,020 377,580 253,371 134,506 293,382 19,797 — $ 1,713,113 Gross charge-offs $ 21 — 11 285 25 28 — — $ 370 Based on the analysis performed as of December 31, 2022, the risk category of loans by class of loans is as follows: Special Pass Mention Substandard Doubtful Loss Total December 31, 2022 Commercial and industrial $ 256,939 $ 575 $ 1,387 $ — $ — $ 258,901 Commercial real estate 1,074,952 7,399 15,703 — — 1,098,054 Commercial real estate construction 109,570 — — — — 109,570 Residential real estate 73,089 — 1,188 — — 74,277 Home equity 12,278 — 51 — — 12,329 Consumer 16,195 — 104 — — 16,299 Total $ 1,543,023 $ 7,974 $ 18,433 $ — $ — $ 1,569,430

Fair Value (Tables)

Fair Value (Tables)	6 Months Ended
Fair Value (Tables)	Jun. 30, 2023
Fair Value
Summary of assets and liabilities measured at fair value	Fair Value Measurements Using: Quoted Prices in Active Markets Significant Other Significant Total at for Identical Observable Unobservable June 30, Assets Inputs Inputs 2023 (Level 1) (Level 2) (Level 3) U.S. government agencies and treasuries $ 89,331 $ — $ 89,331 $ — Mortgage-backed securities 304,555 — 304,555 — Corporate securities 19,906 — 19,906 — Obligations of states and political subdivisions 89,451 — 89,451 — Total securities available-for-sale $ 503,243 $ — $ 503,243 $ — Fair Value Measurements Using: Quoted Prices in Active Markets Significant Other Significant Total at for Identical Observable Unobservable December 31, Assets Inputs Inputs 2022 (Level 1) (Level 2) (Level 3) U.S. government agencies and treasuries 93,750 $ — $ 93,750 $ — Mortgage-backed securities 316,915 — 316,915 — Corporate securities 25,658 — 25,658 — Obligations of states and political subdivisions 97,138 — 97,138 — Total securities available-for-sale $ 533,461 $ — $ 533,461 $ —
Schedule of assets measured at fair value on a non-recurring	Fair Value Measurements Using: Quoted Prices Significant in Active Other Significant Total at Markets for Observable Unobservable June 30, 2023 Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Individually Evaluated Loans - Commercial Real Estate $ 204 $ — $ — $ 204 Fair Value Measurements Using: Quoted Prices Significant in Active Other Significant Total at Markets for Observable Unobservable December 31, 2022 Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Impaired loans $ 204 $ — $ — $ 204
Schedule of level 3 fair value measured at fair value on a non-recurring	Fair Value Range June 30, 2023 Value Valuation Technique Unobservable Input (Weighted Average) Individually Evaluated Loans - Commercial Real Estate $ 204 Appraisal of collateral (1) Appraisal and liquidation 20% adjustments (2) (20%) Fair Value Range December 31, 2022 Value Valuation Technique Unobservable Input (Weighted Average) Impaired loans - Commercial Real Estate $ 204 Appraisal of collateral (1) Appraisal and liquidation 20% adjustments (2) (20%) (1) Fair value is generally determined through independent appraisals of the underlying collateral that generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.
Summary of carrying amounts and estimated fair values of financial instruments	June 30, 2023 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 178,619 $ 178,619 $ 178,619 $ — $ — Loans, net 1,688,265 1,608,144 — — 1,608,144 Accrued interest receivable 5,808 5,808 — 2,318 3,490 Restricted investment in bank stocks 11,494 NA — — — Financial liabilities: Deposits 2,138,238 2,136,795 1,978,683 158,112 — FHLB advances, short term 156,500 156,151 156,151 FHLB advances, long term 10,000 9,788 — 9,788 — Subordinated notes, net of issuance costs 19,484 24,198 — 24,198 — Accrued interest payable 589 589 — 589 — December 31, 2022 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 86,081 $ 86,081 $ 86,081 $ — $ — Loans, net 1,547,598 1,503,543 — — 1,503,543 Accrued interest receivable 6,320 6,320 — 2,448 3,872 Restricted investment in bank stocks 9,562 NA — — — Financial liabilities: Deposits 1,974,387 1,972,387 1,881,354 91,033 — FHLB advances, short term 131,500 131,255 — 131,255 — Subordinated notes, net of issuance costs 19,447 19,682 — 19,682 — Accrued interest payable 267 267 — 267 —

Deposits (Tables)

Deposits (Tables)	6 Months Ended
Deposits (Tables)	Jun. 30, 2023
Deposits
Summary of analysis of deposits	June 30, 2023 December 31, 2022 Non-interest bearing demand accounts $ 715,630 $ 723,228 Interest-bearing demand accounts 357,494 284,747 Money market accounts 647,073 615,149 Savings accounts 258,462 258,230 Certificates of Deposit 159,579 93,033 Total deposits $ 2,138,238 $ 1,974,387
Schedule of maturities of time deposits	2023 $ 138,348 2024 11,665 2025 8,107 2026 1,459 $ 159,579

Pension Plan and Stock Compen_2

Pension Plan and Stock Compensation (Tables)	6 Months Ended
Pension Plan and Stock Compensation (Tables)	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of components of net periodic benefit cost	Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Service cost $ — $ — $ — $ — Interest cost 279 202 557 404 Expected return on plan assets (411) (496) (822) (992) Amortization of transition cost — (7) — (14) Amortization of net loss 70 — 141 — Net periodic benefit cost/(income) $ (62) $ (301) $ (124) $ (602)
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of restricted stock awards activity	Weighted Average Fair Shares Value Non-vested at beginning of period 11,677 $ 29.24 Granted — $ Vested (7,569) $ 29.50 Forfeited (414) $ 28.75 Non-vested at end of period 3,694 $ 28.75
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of restricted stock awards activity	Restricted Stock Units Non-vested RSUs at beginning of period 59,747 Granted 22,650 Vested (8,486) Forfeited (4,725) Non-vested RSUs at end of period 69,186

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
Accumulated Other Comprehensive Income (Loss) (Tables)	Jun. 30, 2023
Accumulated Other Comprehensive Income (Loss).
Summary of changes in accumulated other comprehensive income (loss)	The following is a summary of changes in accumulated other comprehensive income (loss) by component, net of tax, for the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, 2023 Unrealized Gains and Losses on Deferred Available-for- Defined Benefit Compensation Sale Securities Pension Items Liability Total Beginning balance $ (50,800) $ (7,494) $ 120 $ (58,174) Other comprehensive income/(loss) before reclassification, net (8,677) 395 (3) (8,285) Credit loss expense — — Less amounts reclassified from accumulated other comprehensive income — — — — Net current period other comprehensive income/(loss) (8,677) 395 (3) (8,285) Ending balance $ (59,477) $ (7,099) $ 117 $ (66,459) Six Months Ended June 30, 2023 Unrealized Gains and Losses on Deferred Available-for- Defined Benefit Compensation Sale Securities Pension Items Liability Total Beginning balance $ (60,430) $ (7,889) $ 123 $ (68,196) Other comprehensive income/(loss) before reclassification (3,960) 790 (6) (3,176) Credit loss expense 5,000 5,000 Less amounts reclassified from accumulated other comprehensive income (87) — — (87) Net current period other comprehensive income/(loss) 953 790 (6) 1,737 Ending balance $ (59,477) $ (7,099) $ 117 $ (66,459) Three Months Ended June 30, 2022 Unrealized Gains and Losses on Deferred Available-for- Defined Benefit Compensation Sale Securities Pension Items Liability Total Beginning balance $ (23,666) $ (2,308) $ 132 $ (25,842) Other comprehensive income/(loss) before reclassification (20,114) 206 (3) (19,911) Less amounts reclassified from accumulated other comprehensive income — 8 — 8 Net current period other comprehensive income/(loss) (20,114) 198 (3) (19,919) Ending balance $ (43,780) $ (2,110) $ 129 $ (45,761) Six Months Ended June 30, 2022 Unrealized Gains and Losses on Deferred Available-for- Defined Benefit Compensation Sale Securities Pension Items Liability Total Beginning balance $ (1,072) $ (2,506) $ 135 $ (3,443) Other comprehensive income/(loss) before reclassification (42,708) 412 (6) (42,302) Less amounts reclassified from accumulated other comprehensive income — 16 16 Net current period other comprehensive income/(loss) (42,708) 396 (6) (42,318) Ending balance $ (43,780) $ (2,110) $ 129 $ (45,761)
Summary of significant amounts reclassified out of each component of accumulated other comprehensive income (loss)	Affected Line Item Amount Reclassified from Accumulated Other Comprehensive Income in the Statement where Net Income is Presented Three Months Ended June 30, Six Months Ended June 30, Details about Accumulated Other Comprehensive Income Components 2023 2022 2023 2022 Unrealized gains and losses on available-for-sale securities Realized gains on securities available-for-sale $ — $ — $ 107 $ — Investment security gains (losses) Total before tax — — 107 — Tax effect — — 20 — Provision for income taxes Net of tax $ — $ — $ 87 $ — Amortization of defined benefit pension items Transition asset $ — $ (7) $ — $ (14) Other expense Actuarial gains (losses) — — — — Other expense Total before tax — (7) — (14) Tax effect — (1) — (2) Provision for income taxes Net of tax $ — $ (8) $ — $ (16) - Total reclassifications for the period, net of tax $ — $ (8) $ 87 $ (16)

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	6 Months Ended
Revenue from Contracts with Customers (Tables)	Jun. 30, 2023
Revenue from Contracts with Customers
Schedule of noninterest income	Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Noninterest Income Service charges on deposit accounts $ $ Overdraft fees 107 72 $ 188 $ 146 Other 98 89 190 183 Trust income 1,265 1,223 2,441 2,393 Investment advisory income 1,289 1,099 2,486 2,300 Investment securities gains (losses) (a) — — 107 — Earnings on bank owned life insurance (a) 244 236 482 469 Other (b) 283 258 562 491 Total Noninterest Income $ 3,286 $ 2,977 $ 6,456 $ 5,982 (a) Not within the scope of ASC 606. (b) The Other category includes safe deposit income, checkbook fees, and debit card fee income, totaling $235 and $222 for the three months ended June 30, 2023 and 2022, respectively, and $467 and $413 for the six months ended June 30, 2023 and 2022, that are within the scope of ASC 606 and loan related fee income and miscellaneous income, totaling $48 and $35 for the three months ended June 30, 2023 and 2022, respectively, and the $95 and $78 for the six months ended June 30, 2023 and 2022 which are outside the scope of ASC 606.

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
Segment Information (Tables)	Jun. 30, 2023
Segment Information
Schedule of segment information	For the three months ended June 30, 2023 For the six months ended June 30, 2023 Banking Wealth Management Total Segments Banking Wealth Management Total Segments Net interest income $ 22,602 $ — $ 22,602 $ 43,741 $ — $ 43,741 Noninterest income 733 2,553 3,286 1,528 4,928 6,456 Provision for credit loss - investments — — — (5,000) (5,000) Provision for credit loss (214) — (214) (1,569) — (1,569) Noninterest expenses (12,275) (2,172) (14,447) (24,489) (3,986) (28,475) Income tax expense (2,061) (80) (2,141) (2,639) (198) (2,837) Net income $ 8,785 $ 301 $ 9,086 $ 11,572 $ 744 $ 12,316 Total assets $ 2,485,549 $ 8,360 $ 2,493,909 $ 2,485,549 $ 8,360 $ 2,493,909 For the three months ended June 30, 2022 For the six months ended June 30, 2022 Banking Wealth Management Total Segments Banking Wealth Management Total Segments Net interest income $ 17,509 $ — $ 17,509 $ 33,848 $ — $ 33,848 Noninterest income 654 2,323 2,977 1,289 4,693 5,982 Provision for loan loss (5,510) — (5,510) (6,433) — (6,433) Noninterest expenses (10,642) (1,824) (12,466) (20,573) (3,714) (24,287) Income tax expense (295) (105) (400) (1,464) (206) (1,670) Net income $ 1,716 $ 394 $ 2,110 $ 6,667 $ 773 $ 7,440 Total assets $ 2,384,424 $ 7,625 $ 2,392,049 $ 2,384,424 7,625 $ 2,392,049

Regulatory Capital Matters (Tab

Regulatory Capital Matters (Tables)	6 Months Ended
Regulatory Capital Matters (Tables)	Jun. 30, 2023
Regulatory Capital Matters
Schedule of actual and required capital amounts and ratios	To be Well Capitalized For Capital Adequacy For Capital Adequacy under Prompt Actual Purposes Purposes with Capital Buffer Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio June 30, 2023 Total capital to risk weighted assets $ 245,896 13.47 % $ 146,032 8.00 % $ 180,258 9.875 % $ 182,540 10.00 % Tier 1 (Core) capital to risk weighted assets 223,047 12.22 % 109,524 6.00 % 143,750 7.875 % 146,032 8.00 % Common Tier 1 (CET1) to risk weighted assets 223,047 12.22 % 82,143 4.50 % 116,369 6.375 % 118,651 6.50 % Tier 1 (Core) Capital to average assets 223,047 8.86 % 100,709 4.00 % N/A N/A 125,887 5.00 % December 31, 2022 Total capital to risk weighted assets $ 235,346 13.95 % $ 134,986 8.00 % $ 166,624 9.875 % $ 168,733 10.00 % Tier 1 (Core) capital to risk weighted assets 214,243 12.70 % 101,240 6.00 % 132,877 7.875 % 134,986 8.00 % Common Tier 1 (CET1) to risk weighted assets 214,243 12.70 % 75,930 4.50 % 107,567 6.375 % 109,677 6.50 % Tier 1 (Core) Capital to average assets 214,243 9.09 % 94,250 4.00 % N/A N/A 117,813 5.00 %

Nature of Operations and Summ_3

Nature of Operations and Summary of Significant Accounting Policies - Nature of Operations and Principles of Consolidation (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($) location	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Loans
Assets held in an agency or fiduciary capacity	$ 1,400,000		$ 1,300,000
Financing receivable allowance for credit loss	24,848	$ 24,726	21,832	$ 23,642	$ 18,427	$ 17,661
Decrease in retained earnings	$ (92,795)		(84,635)
Accounting Standards Update 2016-13 [Member]
Loans
Financing receivable allowance for credit loss			1,900
Elimination of reserves			1,400
Off balance sheet, credit loss liability			520
Decrease in retained earnings			$ 1,600
Orange County
Loans
Number of offices in New York \| location	8
Westchester County
Loans
Number of offices in New York \| location	7
Rockland County
Loans
Number of offices in New York \| location	2
Bronx County
Loans
Number of offices in New York \| location	1

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Investment securities
Gross Unrealized Gains	$ 59		$ 90
Gross Unrealized Losses	(75,346)		(76,583)
ACL adjustment	0		0
Fair Value	503,243		533,461
Amortized Cost	578,530	$ 578,530	609,954
U.S. government agencies and treasuries
Investment securities
Gross Unrealized Gains	20		25
Gross Unrealized Losses	(10,776)		(11,009)
Fair Value	89,331		93,750
Amortized Cost	100,087		104,734
Mortgage-backed securities
Investment securities
Gross Unrealized Gains	13		17
Gross Unrealized Losses	(47,504)		(47,792)
Fair Value	304,555		316,915
Amortized Cost	352,046		364,690
Corporate Securities
Investment securities
Gross Unrealized Losses	(3,633)		(2,901)
Fair Value	19,906		25,658
Amortized Cost	23,539		28,559
Obligations of states and political subdivisions
Investment securities
Gross Unrealized Gains	26		48
Gross Unrealized Losses	(13,433)		(14,881)
Fair Value	89,451		97,138
Amortized Cost	$ 102,858		$ 111,971

Investment Securities - Gains a

Investment Securities - Gains and Losses (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Investment Securities
Proceeds	$ 7,296
Gross realized gains	130
Gross realized losses	23
Net gain on sales of securities	107
Tax provision on realized net gains and loss	20
Net gain on sales of securities, after tax	$ 87

Investment Securities - Contrac

Investment Securities - Contractual Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Amortized Cost
Due in one year or less, Amortized Cost	$ 6,877
Due after one through five years, Amortized Cost	22,558
Due after five through ten years, Amortized Cost	62,095
Due after ten years, Amortized Cost	134,954
Total, Amortized Cost	226,484
Mortgage-backed securities	352,046
Amortized Cost	578,530	$ 578,530	$ 609,954
Fair Value
Due in one year or less, Fair Value	6,787
Due after one through five years, Fair Value	21,144
Due after five through ten years, Fair Value	53,580
Due after ten years, Fair Value	117,177
Total, Fair Value	198,688
Mortgage-backed securities	304,555
Amortized Cost	503,243		533,461
Mortgage-backed securities
Amortized Cost
Amortized Cost	352,046		364,690
Fair Value
Amortized Cost	304,555		316,915
Debt securities pledged as collateral	$ 395,374		$ 323,674

Investment Securities - Securit

Investment Securities - Securities with unrealized and unrecognized losses (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Investment securities
Fair Value, Less than 12 Months	$ 57,150	$ 267,396
Fair Value, 12 Months or More	437,749	252,688
Fair Value, Total	494,899	520,084
Unrealized Losses, Less than 12 Months	(2,237)	(22,323)
Unrealized Losses, 12 Months or More	(73,109)	(54,260)
Unrealized Losses, Total	(75,346)	(76,583)
U.S. government agencies and treasuries
Investment securities
Fair Value, Less than 12 Months	29,342	47,064
Fair Value, 12 Months or More	55,696	41,718
Fair Value, Total	85,038	88,782
Unrealized Losses, Less than 12 Months	(1,100)	(2,414)
Unrealized Losses, 12 Months or More	(9,676)	(8,595)
Unrealized Losses, Total	(10,776)	(11,009)
Mortgage-backed securities
Investment securities
Fair Value, Less than 12 Months	18,630	150,542
Fair Value, 12 Months or More	284,909	165,336
Fair Value, Total	303,539	315,878
Unrealized Losses, Less than 12 Months	(424)	(12,139)
Unrealized Losses, 12 Months or More	(47,080)	(35,653)
Unrealized Losses, Total	(47,504)	(47,792)
Corporate Securities
Investment securities
Fair Value, Less than 12 Months	3,968	12,503
Fair Value, 12 Months or More	15,938	13,155
Fair Value, Total	19,906	25,658
Unrealized Losses, Less than 12 Months	(532)	(1,007)
Unrealized Losses, 12 Months or More	(3,101)	(1,894)
Unrealized Losses, Total	(3,633)	(2,901)
Obligations of states and political subdivisions
Investment securities
Fair Value, Less than 12 Months	5,210	57,287
Fair Value, 12 Months or More	81,206	32,479
Fair Value, Total	86,416	89,766
Unrealized Losses, Less than 12 Months	(181)	(6,763)
Unrealized Losses, 12 Months or More	(13,252)	(8,118)
Unrealized Losses, Total	$ (13,433)	$ (14,881)

Investment Securities - Narrati

Investment Securities - Narrative (Details)	3 Months Ended	6 Months Ended
Investment Securities - Narrative (Details)	Jun. 30, 2023 USD ($) security	Jun. 30, 2023 USD ($) security	Dec. 31, 2022 USD ($) security
Investment Securities
Other than temporary impairment loss recognized	$ 0	$ 0
Number of securities in portfolio \| security	276	276	296
Number of unrealized loss positions \| security	251	251	264
Charge-offs	$ 5,000,000	$ 5,000,000
Available for sale debt securities, accrued interest on investments	$ 2,300,000	$ 2,300,000	$ 2,500,000

Investment Securities - Allowan

Investment Securities - Allowance for credit losses -investments (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Allowance for credit losses -investments
Beginning balance		$ 0
Provision for credit losses- investments		5,000
Charge-offs	$ 5,000	5,000
Ending balance	$ 0	$ 0

Loans (Details)

Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Loans
Total loans	$ 1,713,113		$ 1,569,430
Total loans			1,569,430
Allowance for credit losses	(24,848)	$ (24,726)	(21,832)	$ (23,642)	$ (18,427)	$ (17,661)
Allowance for credit losses			(21,832)
Loans, net	1,688,265		1,547,598
Loans, net			1,547,598
Commercial and industrial. \| Commercial and industrial
Loans
Total loans	257,515
Total loans			258,901
Allowance for credit losses	(5,155)	(5,141)	(5,510)	(9,332)	(5,408)	(4,901)
Commercial and industrial. \| Paycheck Protection Program
Loans
Total loans	1,535
Total loans			1,717
Commercial real estate. \| Commercial real estate
Loans
Total loans	1,213,113
Total loans			1,098,054
Allowance for credit losses	(17,119)	(16,698)	(14,364)	(12,303)	(11,073)	(11,183)
Commercial real estate. \| Commercial real estate construction
Loans
Total loans	116,919
Total loans			109,570
Allowance for credit losses	(1,060)	(1,625)	(1,252)	(1,318)	(1,296)	(964)
Residential real estate. \| Residential real estate
Loans
Total loans	83,295
Total loans			74,277
Allowance for credit losses	(992)	(1,048)	(345)	(299)	(294)	(272)
Residential real estate. \| Home equity
Loans
Total loans	12,049
Total loans			12,329
Allowance for credit losses	(46)	(72)	(63)	(68)	(69)	(80)
Consumer
Loans
Total loans	30,222
Total loans			16,299
Allowance for credit losses	$ (476)	$ (142)	$ (298)	$ (322)	$ (287)	$ (261)

Loans - Allowance by portfolio

Loans - Allowance by portfolio segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Allowance for credit losses
Beginning balance	$ 24,726	$ 18,427	$ 21,832	$ 17,661
Provision for credit / loan losses	214	5,510	1,747	6,433
Charge-offs	(192)	(340)	(370)	(507)
Recoveries	100	45	211	55
Ending balance	24,848	23,642	24,848	23,642
Allowance for credit losses:
individually evaluated for impairment					$ 1,033
Individually evaluated for impairment	920		920
collectively evaluated for impairment					20,799
collectively evaluated for impairment	23,928		23,928
Total ending allowance balance	24,848	23,642	24,848	23,642	21,832
Loans:
individually evaluated for impairment					25,368
individually evaluated for impairment	24,321		24,321
collectively evaluated for impairment					1,544,062
Collectively evaluated for impairment	1,688,792		1,688,792
Total ending loans balance					1,569,430
Total ending loans balance	1,713,113		1,713,113		1,569,430
Accounting Standards Update 2016-13 [Member]
Allowance for credit losses
Beginning balance			1,900
Allowance for credit losses:
Total ending allowance balance					1,900
Cumulative Effect, Period of Adoption, Adjustment [Member] \| Accounting Standards Update 2016-13 [Member]
Allowance for credit losses
Beginning balance			1,428
Allowance for credit losses:
Total ending allowance balance					1,428
Commercial and industrial. \| Commercial and industrial
Allowance for credit losses
Beginning balance	5,141	5,408	5,510	4,901
Provision for credit / loan losses	186	3,944	(151)	4,492
Charge-offs	(192)	(29)	(334)	(76)
Recoveries	20	9	58	15
Ending balance	5,155	9,332	5,155	9,332
Allowance for credit losses:
individually evaluated for impairment					653
Individually evaluated for impairment	554		554
collectively evaluated for impairment					4,857
collectively evaluated for impairment	4,601		4,601
Total ending allowance balance	5,155	9,332	5,155	9,332	5,510
Loans:
individually evaluated for impairment					1,003
individually evaluated for impairment	641		641
collectively evaluated for impairment					257,898
Collectively evaluated for impairment	256,874		256,874
Total ending loans balance					258,901
Total ending loans balance	257,515		257,515
Commercial and industrial. \| Commercial and industrial \| Cumulative Effect, Period of Adoption, Adjustment [Member] \| Accounting Standards Update 2016-13 [Member]
Allowance for credit losses
Beginning balance			72
Allowance for credit losses:
Total ending allowance balance					72
Commercial and industrial. \| Paycheck Protection Program
Loans:
Total ending loans balance					1,717
Total ending loans balance	1,535		1,535
Commercial real estate. \| Commercial real estate
Allowance for credit losses
Beginning balance	16,698	11,073	14,364	11,183
Provision for credit / loan losses	421	1,230	1,005	1,120
Recoveries			13
Ending balance	17,119	12,303	17,119	12,303
Allowance for credit losses:
individually evaluated for impairment					380
Individually evaluated for impairment	366		366
collectively evaluated for impairment					13,984
collectively evaluated for impairment	16,753		16,753
Total ending allowance balance	17,119	12,303	17,119	12,303	14,364
Loans:
individually evaluated for impairment					22,956
individually evaluated for impairment	22,287		22,287
collectively evaluated for impairment					1,075,098
Collectively evaluated for impairment	1,190,826		1,190,826
Total ending loans balance					1,098,054
Total ending loans balance	1,213,113		1,213,113
Commercial real estate. \| Commercial real estate \| Cumulative Effect, Period of Adoption, Adjustment [Member] \| Accounting Standards Update 2016-13 [Member]
Allowance for credit losses
Beginning balance			1,737
Allowance for credit losses:
Total ending allowance balance					1,737
Commercial real estate. \| Commercial real estate construction
Allowance for credit losses
Beginning balance	1,625	1,296	1,252	964
Provision for credit / loan losses	(565)	22	(184)	354
Ending balance	1,060	1,318	1,060	1,318
Allowance for credit losses:
collectively evaluated for impairment					1,252
collectively evaluated for impairment	1,060		1,060
Total ending allowance balance	1,060	1,318	1,060	1,318	1,252
Loans:
collectively evaluated for impairment					109,570
Collectively evaluated for impairment	116,919		116,919
Total ending loans balance					109,570
Total ending loans balance	116,919		116,919
Commercial real estate. \| Commercial real estate construction \| Cumulative Effect, Period of Adoption, Adjustment [Member] \| Accounting Standards Update 2016-13 [Member]
Allowance for credit losses
Beginning balance			(8)
Allowance for credit losses:
Total ending allowance balance					(8)
Residential real estate. \| Residential real estate
Allowance for credit losses
Beginning balance	1,048	294	345	272
Provision for credit / loan losses	(56)	56	874	78
Charge-offs		(51)		(51)
Ending balance	992	299	992	299
Allowance for credit losses:
collectively evaluated for impairment					345
collectively evaluated for impairment	992		992
Total ending allowance balance	992	299	992	299	345
Loans:
individually evaluated for impairment					1,254
individually evaluated for impairment	1,247		1,247
collectively evaluated for impairment					73,023
Collectively evaluated for impairment	82,048		82,048
Total ending loans balance					74,277
Total ending loans balance	83,295		83,295
Residential real estate. \| Residential real estate \| Cumulative Effect, Period of Adoption, Adjustment [Member] \| Accounting Standards Update 2016-13 [Member]
Allowance for credit losses
Beginning balance			(227)
Allowance for credit losses:
Total ending allowance balance					(227)
Residential real estate. \| Home equity
Allowance for credit losses
Beginning balance	72	69	63	80
Provision for credit / loan losses	(26)	(1)		(12)
Ending balance	46	68	46	68
Allowance for credit losses:
collectively evaluated for impairment					63
collectively evaluated for impairment	46		46
Total ending allowance balance	46	68	46	68	63
Loans:
individually evaluated for impairment					51
individually evaluated for impairment	47		47
collectively evaluated for impairment					12,278
Collectively evaluated for impairment	12,002		12,002
Total ending loans balance					12,329
Total ending loans balance	12,049		12,049
Residential real estate. \| Home equity \| Cumulative Effect, Period of Adoption, Adjustment [Member] \| Accounting Standards Update 2016-13 [Member]
Allowance for credit losses
Beginning balance			(17)
Allowance for credit losses:
Total ending allowance balance					(17)
Consumer
Allowance for credit losses
Beginning balance	142	287	298	261
Provision for credit / loan losses	254	259	203	401
Charge-offs		(260)	(36)	(380)
Recoveries	80	36	140	40
Ending balance	476	322	476	322
Allowance for credit losses:
collectively evaluated for impairment					298
collectively evaluated for impairment	476		476
Total ending allowance balance	476	$ 322	476	$ 322	298
Loans:
individually evaluated for impairment					104
individually evaluated for impairment	99		99
collectively evaluated for impairment					16,195
Collectively evaluated for impairment	30,123		30,123
Total ending loans balance					16,299
Total ending loans balance	$ 30,222		30,222
Consumer \| Cumulative Effect, Period of Adoption, Adjustment [Member] \| Accounting Standards Update 2016-13 [Member]
Allowance for credit losses
Beginning balance			$ (129)
Allowance for credit losses:
Total ending allowance balance					$ (129)

Loans - Loans individually eval

Loans - Loans individually evaluated (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Unpaid Principal Balance
With no related allowance recorded					$ 19,205
With no related allowance recorded	$ 18,839		$ 18,839
With an allowance recorded	6,484		6,484
Unpaid Principal Balance, Total					6,780
Recorded Investment
With no related allowance recorded					18,621
With no related allowance recorded	18,161		18,161
With an allowance recorded	6,160		6,160
Recorded Investment, Total					6,747
Allowance for loan losses allocated, with no allowance recorded	920		920
Allowance for loan losses allocated, with allowance recorded					1,033
Average Recorded Investment
With no related allowance recorded		$ 19,612		$ 17,818
With no related allowance recorded	18,233		18,299
With an allowance recorded		20,778		15,468
With an allowance recorded	6,276		6,401
Cash Basis Interest Recognized
With no related allowance recorded		172		171
with no related allowance recorded	157		315
With an allowance recorded		94		102
With an allowance recorded	79		159
Commercial and industrial.
Unpaid Principal Balance
With an allowance recorded					1,011
Recorded Investment
With an allowance recorded					1,003
Allowance for loan losses allocated, with allowance recorded					653
Commercial and industrial. \| Commercial and industrial
Unpaid Principal Balance
With an allowance recorded	931		931
Recorded Investment
With an allowance recorded	641		641
Allowance for loan losses allocated, with allowance recorded	554		554
Average Recorded Investment
With an allowance recorded		20,334		10,833
With an allowance recorded	5,970		6,091
Cash Basis Interest Recognized
With an allowance recorded				60
With an allowance recorded		93
With an allowance recorded	79		159
Commercial real estate.
Unpaid Principal Balance
With an allowance recorded					5,665
Recorded Investment
With an allowance recorded					5,640
Allowance for loan losses allocated, with allowance recorded					380
Commercial real estate. \| Commercial real estate
Unpaid Principal Balance
With no related allowance recorded					17,884
With no related allowance recorded	17,428		17,428
With an allowance recorded	5,553		5,553
Recorded Investment
With no related allowance recorded					17,316
With no related allowance recorded	16,768		16,768
With an allowance recorded	5,519		5,519
Allowance for loan losses allocated, with allowance recorded	366		366
Average Recorded Investment
With no related allowance recorded		17,743		16,242
With no related allowance recorded	16,836		16,898
With an allowance recorded		334		4,523
With an allowance recorded	306		310
Cash Basis Interest Recognized
With no related allowance recorded		159		160
with no related allowance recorded	155		311
With an allowance recorded				41
Commercial real estate. \| Commercial real estate construction
Average Recorded Investment
With no related allowance recorded		578		578
With no related allowance recorded	578		578
Residential real estate. \| Residential real estate
Unpaid Principal Balance
With no related allowance recorded					1,266
With no related allowance recorded	1,260		1,260
Recorded Investment
With no related allowance recorded					1,254
With no related allowance recorded	1,247		1,247
Average Recorded Investment
With no related allowance recorded		1,291		998
With no related allowance recorded	718		721
Cash Basis Interest Recognized
With no related allowance recorded		13		11
with no related allowance recorded	1		1
Residential real estate. \| Home equity
Unpaid Principal Balance
With no related allowance recorded					55
With no related allowance recorded	52		52
Recorded Investment
With no related allowance recorded					51
With no related allowance recorded	47		47
Consumer
Unpaid Principal Balance
With no related allowance recorded	99		99
With an allowance recorded					104
Recorded Investment
With no related allowance recorded	99		99
With an allowance recorded					$ 104
Average Recorded Investment
With no related allowance recorded	101		102
With an allowance recorded		110		112
Cash Basis Interest Recognized
with no related allowance recorded	$ 1		$ 3
With an allowance recorded		$ 1		$ 1

Loans - Recorded investment in

Loans - Recorded investment in non-accrual and loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Loans
Non-accrual		$ 6,124
Non-accrual	$ 5,359
Loans Past Due Over 90 Days Non-accrual Still Accruing		2,327
Loans Past Due Over 90 Days Non-accrual Still Accruing	42
ACL relating to non-accrual balances	655
Non-accrual loans with no ACL associated to them	4,400
Commercial and industrial. \| Commercial and industrial
Loans
Non-accrual		1,003
Non-accrual	641
Loans Past Due Over 90 Days Non-accrual Still Accruing		1,850
Commercial real estate. \| Commercial real estate
Loans
Non-accrual		3,882
Non-accrual	3,487
Residential real estate. \| Residential real estate
Loans
Non-accrual		1,188
Non-accrual	1,184
Residential real estate. \| Home equity
Loans
Non-accrual		51
Non-accrual	47
Consumer
Loans
Loans Past Due Over 90 Days Non-accrual Still Accruing		$ 477
Loans Past Due Over 90 Days Non-accrual Still Accruing	$ 42

Loans - Aging of the recorded i

Loans - Aging of the recorded investment (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	$ 1,713,113	$ 1,569,430
30 - 59 Days Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	544	2,646
60 - 89 Days Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	770	2,217
Greater Than 90 Days
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	2,534	5,470
Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	3,848	10,333
Not Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	1,709,265	1,559,097
Commercial and industrial. \| Commercial and industrial
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	257,515
Commercial and industrial. \| Commercial and industrial \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	520	1,497
Commercial and industrial. \| Commercial and industrial \| 60 - 89 Days Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	449	1,583
Commercial and industrial. \| Commercial and industrial \| Greater Than 90 Days
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	641	2,854
Commercial and industrial. \| Commercial and industrial \| Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	1,610	5,934
Commercial and industrial. \| Commercial and industrial \| Not Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	255,905	252,967
Commercial real estate. \| Commercial real estate
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	1,213,113
Commercial real estate. \| Commercial real estate \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans		563
Commercial real estate. \| Commercial real estate \| 60 - 89 Days Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	304
Commercial real estate. \| Commercial real estate \| Greater Than 90 Days
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	684	952
Commercial real estate. \| Commercial real estate \| Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	988	1,515
Commercial real estate. \| Commercial real estate \| Not Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	1,212,125	1,096,539
Commercial real estate. \| Commercial real estate construction
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	116,919
Commercial real estate. \| Commercial real estate construction \| Not Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	116,919	109,570
Residential real estate. \| Residential real estate
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	83,295
Residential real estate. \| Residential real estate \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans		2
Residential real estate. \| Residential real estate \| 60 - 89 Days Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	17
Residential real estate. \| Residential real estate \| Greater Than 90 Days
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	1,167	1,188
Residential real estate. \| Residential real estate \| Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	1,184	1,190
Residential real estate. \| Residential real estate \| Not Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	82,111	73,087
Residential real estate. \| Home equity
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	12,049
Residential real estate. \| Home equity \| Not Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	12,049	12,329
Consumer
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	30,222
Consumer \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	24	584
Consumer \| 60 - 89 Days Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans		634
Consumer \| Greater Than 90 Days
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	42	476
Consumer \| Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	66	1,694
Consumer \| Not Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Total loans	$ 30,156	$ 14,605

Loans - Troubled debt restructu

Loans - Troubled debt restructurings (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Loans
Loans in process of foreclosure	$ 2,624	$ 2,016
Residential real estate. \| Residential real estate
Loans
Loans in process of foreclosure	$ 1,167	$ 578

Loans - Risk category of loans

Loans - Risk category of loans by class of loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Loans
Total loans	$ 1,713,113	$ 1,569,430
Loans		1,569,430
Pass
Loans
Loans		1,543,023
Special Mention
Loans
Loans		7,974
Substandard
Loans
Loans		18,433
Commercial and industrial. \| Commercial and industrial
Loans
Total loans	257,515
Loans		258,901
Commercial and industrial. \| Commercial and industrial \| Pass
Loans
Total loans	255,722
Loans		256,939
Commercial and industrial. \| Commercial and industrial \| Special Mention
Loans
Total loans	767
Loans		575
Commercial and industrial. \| Commercial and industrial \| Substandard
Loans
Total loans	1,026
Loans		1,387
Commercial real estate. \| Commercial real estate
Loans
Total loans	1,213,113
Loans		1,098,054
Commercial real estate. \| Commercial real estate \| Pass
Loans
Total loans	1,190,676
Loans		1,074,952
Commercial real estate. \| Commercial real estate \| Special Mention
Loans
Total loans	7,389
Loans		7,399
Commercial real estate. \| Commercial real estate \| Substandard
Loans
Total loans	15,048
Loans		15,703
Commercial real estate. \| Commercial real estate construction
Loans
Total loans	116,919
Loans		109,570
Commercial real estate. \| Commercial real estate construction \| Pass
Loans
Total loans	116,919
Loans		109,570
Residential real estate. \| Residential real estate
Loans
Total loans	83,295
Loans		74,277
Residential real estate. \| Residential real estate \| Pass
Loans
Total loans	82,111
Loans		73,089
Residential real estate. \| Residential real estate \| Substandard
Loans
Total loans	1,184
Loans		1,188
Residential real estate. \| Home equity
Loans
Total loans	12,049
Loans		12,329
Residential real estate. \| Home equity \| Pass
Loans
Total loans	12,002
Loans		12,278
Residential real estate. \| Home equity \| Substandard
Loans
Total loans	47
Loans		51
Consumer
Loans
Total loans	30,222
Loans		16,299
Consumer \| Pass
Loans
Total loans	30,123
Loans		16,195
Consumer \| Substandard
Loans
Total loans	$ 99
Loans		$ 104

Loans - Narrative (Details)

Loans - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Loans
Loans		$ 1,569,430
Loans	$ 1,713,113	1,569,430
Threshold limit for individual evaluation of credit risk	350
Directors and principal officers of the Company, including their immediate families
Loans
Loans		$ 16,891
Loans	$ 16,856

Loans - Loans by year of origin

Loans - Loans by year of origination and internally assigned credit risk (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	$ 193,457
2022	441,020
2021	377,580
2020	253,371
2019	134,506
Prior	293,382
Revolving Loans	19,797
Total ending loans balance	1,713,113	$ 1,569,430
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
2023	21
2021	11
2020	285
2019	25
Prior	28
Total	370
Commercial and industrial. \| Commercial and industrial
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	21,104
2022	60,056
2021	62,576
2020	46,773
2019	26,500
Prior	40,506
Total ending loans balance	257,515
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
2023	21
2020	285
Prior	28
Total	334
Commercial and industrial. \| Commercial and industrial \| Pass
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	21,104
2022	59,580
2021	62,576
2020	46,548
2019	26,500
Prior	39,414
Total ending loans balance	255,722
Commercial and industrial. \| Commercial and industrial \| Special Mention
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2022	91
Prior	676
Total ending loans balance	767
Commercial and industrial. \| Commercial and industrial \| Substandard
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2022	385
2020	225
Prior	416
Total ending loans balance	1,026
Commercial real estate. \| Commercial real estate
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	135,254
2022	331,624
2021	238,524
2020	169,698
2019	102,640
Prior	233,022
Revolving Loans	2,351
Total ending loans balance	1,213,113
Commercial real estate. \| Commercial real estate \| Pass
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	135,254
2022	331,624
2021	238,086
2020	167,199
2019	96,362
Prior	219,800
Revolving Loans	2,351
Total ending loans balance	1,190,676
Commercial real estate. \| Commercial real estate \| Special Mention
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2021	438
Prior	6,951
Total ending loans balance	7,389
Commercial real estate. \| Commercial real estate \| Substandard
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2020	2,499
2019	6,278
Prior	6,271
Total ending loans balance	15,048
Commercial real estate. \| Commercial real estate construction
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	2,214
2022	25,755
2021	64,239
2020	24,711
Total ending loans balance	116,919
Commercial real estate. \| Commercial real estate construction \| Pass
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	2,214
2022	25,755
2021	64,239
2020	24,711
Total ending loans balance	116,919
Residential real estate. \| Residential real estate
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	13,356
2022	22,856
2021	12,224
2020	9,920
2019	5,248
Prior	19,691
Total ending loans balance	83,295
Residential real estate. \| Residential real estate \| Pass
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	13,356
2022	22,856
2021	12,224
2020	9,920
2019	4,659
Prior	19,096
Total ending loans balance	82,111
Residential real estate. \| Residential real estate \| Substandard
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2019	589
Prior	595
Total ending loans balance	1,184
Residential real estate. \| Home equity
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	129
2022	71
2021	17
2019	82
Revolving Loans	11,750
Total ending loans balance	12,049
Residential real estate. \| Home equity \| Pass
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	129
2022	71
2021	17
2019	82
Revolving Loans	11,703
Total ending loans balance	12,002
Residential real estate. \| Home equity \| Substandard
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
Revolving Loans	47
Total ending loans balance	47
Consumer
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	21,400
2022	658
2020	2,269
2019	36
Prior	163
Revolving Loans	5,696
Total ending loans balance	30,222
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
2021	11
2019	25
Total	36
Consumer \| Pass
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	21,400
2022	658
2020	2,269
2019	36
Prior	64
Revolving Loans	5,696
Total ending loans balance	30,123
Consumer \| Substandard
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
Prior	99
Total ending loans balance	$ 99

Fair Value - Assets and liabili

Fair Value - Assets and liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value
Transfer of assets, Level 1 to level 2	$ 0	$ 0
Recurring
Fair Value
Total securities available for sale	503,243	533,461
Recurring \| U.S. government agencies and treasuries
Fair Value
Total securities available for sale	89,331	93,750
Recurring \| Mortgage-backed securities
Fair Value
Total securities available for sale	304,555	316,915
Recurring \| Corporate Bonds
Fair Value
Total securities available for sale	19,906	25,658
Recurring \| Obligations of states and political subdivisions
Fair Value
Total securities available for sale	89,451	97,138
Recurring \| Level 2
Fair Value
Total securities available for sale	503,243	533,461
Recurring \| Level 2 \| U.S. government agencies and treasuries
Fair Value
Total securities available for sale	89,331	93,750
Recurring \| Level 2 \| Mortgage-backed securities
Fair Value
Total securities available for sale	304,555	316,915
Recurring \| Level 2 \| Corporate Bonds
Fair Value
Total securities available for sale	19,906	25,658
Recurring \| Level 2 \| Obligations of states and political subdivisions
Fair Value
Total securities available for sale	$ 89,451	$ 97,138

Fair Value - Non-recurring (Det

Fair Value - Non-recurring (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value
Reserves allocated to impaired loans		$ 1,033
Commercial real estate. \| Commercial real estate
Fair Value
Reserves allocated to impaired loans		380
Nonrecurring
Fair Value
Impaired loans		204
Nonrecurring \| Commercial real estate. \| Commercial real estate
Fair Value
Individually evaluated loans	$ 204
Level 3 \| Nonrecurring
Fair Value
Impaired loans		204
Reserves allocated to impaired loans	101	$ 112
Level 3 \| Nonrecurring \| Commercial real estate. \| Commercial real estate
Fair Value
Individually evaluated loans	$ 204

Fair Value - Level 3 (Details)

Fair Value - Level 3 (Details) - Nonrecurring $ in Thousands	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value
Impaired loans		$ 204
Commercial real estate. \| Commercial real estate
Fair Value
Evaluated Fair Value Disclosure	$ 204
Level 3
Fair Value
Impaired loans		204
Level 3 \| Commercial real estate. \| Appraisal of collateral \| Appraisal and liquidation adjustment
Fair Value
Impaired loans		$ 204
Level 3 \| Commercial real estate. \| Commercial real estate
Fair Value
Evaluated Fair Value Disclosure	204
Level 3 \| Commercial real estate. \| Commercial real estate \| Appraisal of collateral \| Appraisal and liquidation adjustment
Fair Value
Evaluated Fair Value Disclosure	$ 204
Impaired loans, Measurement input		0.20
Individually Evaluated Loans, Measurement input	0.20
Level 3 \| Commercial real estate. \| Commercial real estate \| Appraisal of collateral \| Appraisal and liquidation adjustment \| Weighted average
Fair Value
Impaired loans, Measurement input		0.20
Individually Evaluated Loans, Measurement input	0.20

Fair Value - Carrying amounts a

Fair Value - Carrying amounts and estimated fair values (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Carrying Amount
Financial assets:
Cash and due from banks	$ 178,619	$ 86,081
Loans, net	1,688,265	1,547,598
Accrued interest receivable	5,808	6,320
Restricted investment in bank stocks	11,494	9,562
Financial liabilities:
Deposits	2,138,238	1,974,387
FHLB advances, short term	156,500	131,500
FHLB advances, long term	10,000
Subordinated notes, net of issuance costs	19,484	19,447
Accrued interest payable	589	267
Fair Value.
Financial assets:
Cash and due from banks	178,619	86,081
Loans, net	1,608,144	1,503,543
Accrued interest receivable	5,808	6,320
Financial liabilities:
Deposits	2,136,795	1,972,387
FHLB advances, short term	156,151	131,255
FHLB advances, long term	9,788
Subordinated notes, net of issuance costs	24,198	19,682
Accrued interest payable	589	267
Fair Value. \| Level 1
Financial assets:
Cash and due from banks	178,619	86,081
Financial liabilities:
Deposits	1,978,683	1,881,354
Fair Value. \| Level 2
Financial assets:
Accrued interest receivable	2,318	2,448
Financial liabilities:
Deposits	158,112	91,033
FHLB advances, short term	156,151	131,255
FHLB advances, long term	9,788
Subordinated notes, net of issuance costs	24,198	19,682
Accrued interest payable	589	267
Fair Value. \| Level 3
Financial assets:
Loans, net	1,608,144	1,503,543
Accrued interest receivable	$ 3,490	$ 3,872

Deposits - Analysis of deposits

Deposits - Analysis of deposits (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Deposits
Non-interest bearing demand accounts	$ 715,630	$ 723,228
Interest-bearing demand accounts	357,494	284,747
Money market accounts	647,073	615,149
Savings accounts	258,462	258,230
Certificates of Deposit	159,579	93,033
Total deposits	2,138,238	1,974,387
Time deposits exceeding FDIC insurance limit of $250	12,094	17,015
Uninsured deposits, net of collateralized	$ 819,000	$ 871,000

Deposits - Scheduled maturities

Deposits - Scheduled maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Deposits
2023	$ 138,348
2024	11,665
2025	8,107
2026	1,459
Total	159,579
Deposits of executive officers, directors and principal officers	$ 7,700	$ 15,600

Pension Plan and Stock Compen_3

Pension Plan and Stock Compensation - Pension Plan (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pension Plan and Stock Compensation
Interest cost	$ 279	$ 202	$ 557	$ 404
Expected return on plan assets	(411)	(496)	(822)	(992)
Amortization of transition cost		(7)		(14)
Amortization of net loss	70		141
Net periodic benefit cost/(income)	$ (62)	$ (301)	$ (124)	$ (602)

Pension Plan and Stock Compen_4

Pension Plan and Stock Compensation - Stock Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended
	Sep. 22, 2021	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pension Plan and Stock Compensation
Stock-based compensation costs				$ 397	$ 104
Restricted stock expense				36	100
Restricted Stock Awards
Pension Plan and Stock Compensation
Restricted stock expense		$ 8	$ 33	$ 36	$ 100
Granted		0	0	0	0
Vesting percentage				33%
Unamortized expense		$ 21		$ 21
Shares
Non-vested at beginning of period (in shares)				11,677
Vested (in shares)				(7,569)
Forfeited (in shares)				(414)
Non-vested at end of period (in shares)		3,694		3,694
Weighted Average Fair Value
Non-vested at beginning of period (in dollars per share)				$ 29.24
Vested (in dollars per share)				29.50
Forfeited (in dollars per share)				28.75
Non-vested at end of period (in dollars per share)		$ 28.75		$ 28.75
Restricted Stock Units (RSUs)
Shares
Non-vested at beginning of period (in shares)				59,747
Granted (in shares)	48,004			22,650
Vested (in shares)				(8,486)
Forfeited (in shares)				(4,725)
Non-vested at end of period (in shares)		69,186		69,186

Pension Plan and Stock Compen_5

Pension Plan and Stock Compensation - Restricted Stock Units (Details) - USD ($) $ in Thousands		6 Months Ended	12 Months Ended
	Sep. 22, 2021	Jun. 30, 2023	Dec. 31, 2021
Pension Plan and Stock Compensation
Maximum discretionary contributions to a KSOP trust			$ 200,000
Restricted Stock Units (RSUs)
Pension Plan and Stock Compensation
Granted (in shares)	48,004	22,650
Restricted Stock Units (RSUs) \| Officers
Pension Plan and Stock Compensation
Granted (in shares)	31,504
Vesting period	3 years
Restricted Stock Units (RSUs) \| Officers \| First anniversary
Pension Plan and Stock Compensation
Vesting percentage	33%
Restricted Stock Units (RSUs) \| Officers \| Second anniversary
Pension Plan and Stock Compensation
Vesting percentage	33%
Restricted Stock Units (RSUs) \| Officers \| Third anniversary
Pension Plan and Stock Compensation
Vesting percentage	33%
Restricted Stock Units (RSUs) \| Non-employee directors
Pension Plan and Stock Compensation
Granted (in shares)	16,500
Vesting percentage	100%

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 148,580	$ 164,549	$ 138,138	$ 182,836
Credit loss expense			5,000
Net current period other comprehensive income/(loss)	(8,285)	(19,919)	1,737	(42,318)
Ending balance	148,171	145,723	148,171	145,723
Unrealized Gains and Losses on Available-for-Sale Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(50,800)	(23,666)	(60,430)	(1,072)
Other comprehensive income/(loss) before reclassification, net	(8,677)	(20,114)	(3,960)	(42,708)
Credit loss expense			5,000
Less amounts reclassified from accumulated other comprehensive income			(87)
Net current period other comprehensive income/(loss)	(8,677)	(20,114)	953	(42,708)
Ending balance	(59,477)	(43,780)	(59,477)	(43,780)
Amortization of Defined Benefit Pension
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(7,494)	(2,308)	(7,889)	(2,506)
Other comprehensive income/(loss) before reclassification, net	395	206	790	412
Less amounts reclassified from accumulated other comprehensive income		8		16
Net current period other comprehensive income/(loss)	395	198	790	396
Ending balance	(7,099)	(2,110)	(7,099)	(2,110)
Deferred Compensation Liability
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	120	132	123	135
Other comprehensive income/(loss) before reclassification, net	(3)	(3)	(6)	(6)
Net current period other comprehensive income/(loss)	(3)	(3)	(6)	(6)
Ending balance	117	129	117	129
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(58,174)	(25,842)	(68,196)	(3,443)
Other comprehensive income/(loss) before reclassification, net	(8,285)	(19,911)	(3,176)	(42,302)
Credit loss expense			5,000
Less amounts reclassified from accumulated other comprehensive income		8	(87)	16
Net current period other comprehensive income/(loss)	(8,285)	(19,919)	1,737	(42,318)
Ending balance	$ (66,459)	$ (45,761)	$ (66,459)	$ (45,761)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (Loss) - Amount Reclassified from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Accumulated Other Comprehensive Income (Loss)
Investment securities gains, net			$ 107
Employee benefits transition asset	$ 1,282	$ 744	2,560	$ 1,448
Employee benefits actuarial gains	283	258	562	491
Total before tax	11,227	2,510	15,153	9,110
Provision for income taxes	2,141	400	2,837	1,670
Net of tax	$ 9,086	2,110	12,316	7,440
Reclassifications out of accumulated other comprehensive income (loss) \| Unrealized Gains and Losses on Available-for-Sale Securities
Accumulated Other Comprehensive Income (Loss)
Investment securities gains, net			107
Total before tax			107
Provision for income taxes			20
Net of tax			87
Reclassifications out of accumulated other comprehensive income (loss) \| Amortization of Defined Benefit Pension
Accumulated Other Comprehensive Income (Loss)
Employee benefits transition asset		(7)		(14)
Total before tax		(7)		(14)
Provision for income taxes		1		2
Net of tax		(8)		(16)
Reclassifications out of accumulated other comprehensive income (loss) \| Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
Net of tax		$ (8)	$ 87	$ (16)

Revenue from Contracts with C_3

Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Noninterest Income
Service charges on deposit accounts	$ 205	$ 161	$ 378	$ 329
Overdraft fees	107	72	188	146
Other	98	89	190	183
Trust income	1,265	1,223	2,441	2,393
Investment advisory income	1,289	1,099	2,486	2,300
Net gain on sales of securities			107
Earnings on bank owned life insurance	244	236	482	469
Other	283	258	562	491
TOTAL NONINTEREST INCOME	3,286	2,977	6,456	5,982
Other noninterest income within the scope of ASC 606	235	222	467	413
Other noninterest income outside the scope of ASC 606	$ 48	$ 35	$ 95	$ 78

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Segment Information (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Segment Information
Net interest income	$ 22,602	$ 17,509	$ 43,741	$ 33,848
Noninterest income	3,286	2,977	6,456	5,982
Provision for credit loss - investments			(5,000)
Provision for credit losses	(214)	(5,510)	(1,569)	(6,433)
Provision for loan loss	(214)	(5,510)	(1,747)	(6,433)
Noninterest expenses	(14,447)	(12,466)	(28,475)	(24,287)
Income tax expense	(2,141)	(400)	(2,837)	(1,670)
NET INCOME	9,086	2,110	12,316	7,440
Total assets	2,493,909	2,392,049	2,493,909	2,392,049	$ 2,287,334
Banking
Segment Information
Net interest income	22,602	17,509	43,741	33,848
Noninterest income	733	654	1,528	1,289
Provision for credit loss - investments			(5,000)
Provision for credit losses	(214)		(1,569)
Provision for loan loss		(5,510)		(6,433)
Noninterest expenses	(12,275)	(10,642)	(24,489)	(20,573)
Income tax expense	(2,061)	(295)	(2,639)	(1,464)
NET INCOME	8,785	1,716	11,572	6,667
Total assets	2,485,549	2,384,424	2,485,549	2,384,424
Wealth Management
Segment Information
Noninterest income	2,553	2,323	4,928	4,693
Noninterest expenses	(2,172)	(1,824)	(3,986)	(3,714)
Income tax expense	(80)	(105)	(198)	(206)
NET INCOME	301	394	744	773
Total assets	$ 8,360	$ 7,625	$ 8,360	$ 7,625

Regulatory Capital Matters (Det

Regulatory Capital Matters (Details) $ in Thousands	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Regulatory Capital Matters
Capital conservation buffer ratio	0.025
Total capital to risk weighted assets
Total capital to risk weighted assets, Actual amount	$ 245,896	$ 235,346
Total capital to risk weighted assets, Actual ratio	0.1347	0.1395
Total capital to risk weighted assets, For Capital Adequacy Purposes	$ 146,032	$ 134,986
Total capital to risk weighted assets, For Capital Adequacy Purposes Ratio	0.0800	0.0800
Total capital to risk weighted assets, For Capital Adequacy Purposes with Capital Buffer	$ 180,258	$ 166,624
Total capital to risk weighted assets, For Capital Adequacy Purposes with Capital Buffer Ratio	0.09875	0.09875
Total capital to risk weighted assets, To be Well Capitalized under Prompt Corrective Action Provisions	$ 182,540	$ 168,733
Total capital to risk weighted assets, To be Well Capitalized under Prompt Corrective Action Provisions Ratio	0.1000	0.1000
Tier 1 (Core) capital to risk weighted assets
Tier 1 (Core) capital to risk weighted assets, Actual amount	$ 223,047	$ 214,243
Tier 1 (Core) capital to risk weighted assets, Actual ratio	0.1222	0.1270
Tier 1 (Core) capital to risk weighted assets, For Capital Adequacy Purposes	$ 109,524	$ 101,240
Tier 1 (Core) capital to risk weighted assets, For Capital Adequacy Purposes Ratio	0.0600	0.0600
Tier 1 (Core) capital to risk weighted assets, For Capital Adequacy Purposes with Capital Buffer	$ 143,750	$ 132,877
Tier 1 (Core) capital to risk weighted assets, Actual amount	0.07875	0.07875
Tier 1 (Core) capital to risk weighted assets, To be Well Capitalized under Prompt Corrective Action Provisions	$ 146,032	$ 134,986
Tier 1 (Core) capital to risk weighted assets, To be Well Capitalized under Prompt Corrective Action Provisions Ratio	0.0800	0.0800
Common Tier 1 (CET1) to risk weighted assets
Common Tier 1 (CET1) to risk weighted assets, Actual amount	$ 223,047	$ 214,243
Common Tier 1 (CET1) to risk weighted assets, Actual ratio	0.1222	0.1270
Common Tier 1 (CET1) to risk weighted assets, For Capital Adequacy Purposes	$ 82,143	$ 75,930
Common Tier 1 (CET1) to risk weighted assets, For Capital Adequacy Purposes Ratio	0.0450	0.0450
Common Tier 1 (CET1) to risk weighted assets, For Capital Adequacy Purposes with Capital Buffer	$ 116,369	$ 107,567
Common Tier 1 (CET1) to risk weighted assets, For Capital Adequacy Purposes with Capital Buffer Ratio	0.06375	0.06375
Common Tier 1 (CET1) to risk weighted assets, To be Well Capitalized under Prompt Corrective Action Provisions	$ 118,651	$ 109,677
Common Tier 1 (CET1) to risk weighted assets, To be Well Capitalized under Prompt Corrective Action Provisions Ratio	0.0650	0.0650
Tier 1 (Core) Capital to average assets
Tier 1 (Core) Capital to average assets, Actual amount	$ 223,047	$ 214,243
Tier 1 (Core) Capital to average assets, Actual ratio	0.0886	0.0909
Tier 1 (Core) Capital to average assets, For Capital Adequacy Purposes	$ 100,709	$ 94,250
Tier 1 (Core) Capital to average assets, For Capital Adequacy Purposes Ratio	0.0400	0.0400
Tier 1 (Core) Capital to average assets, To be Well Capitalized under Prompt Corrective Action Provisions	$ 125,887	$ 117,813
Tier 1 (Core) Capital to average assets, To be Well Capitalized under Prompt Corrective Action Provisions Ratio	0.0500	0.0500