Bar Harbor Bankshares (BHB) 10-Q8 May 232023 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2023	May 04, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
Entity File Number	001-13349
Entity Registrant Name	BAR HARBOR BANKSHARES
Entity Incorporation, State or Country Code	ME
Entity Tax Identification Number	01-0393663
Entity Address, Address Line One	PO Box 400
Entity Address, Address Line Two	82 Main Street
Entity Address, City or Town	Bar Harbor
Entity Address, State or Province	ME
Entity Address, Postal Zip Code	04609-0400
City Area Code	207
Local Phone Number	288-3314
Title of 12(b) Security	Common Stock, par value $2.00 per share
Trading Symbol	BHB
Security Exchange Name	NYSEAMER
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		15,143,558
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000743367
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS (UN

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Cash and cash equivalents:
Cash and due from banks	$ 37,769	$ 39,933
Interest-earning deposits with other banks	44,933	52,362
Total cash and cash equivalents	82,702	92,295
Securities:
Securities available for sale	557,040	559,516
Federal Home Loan Bank stock	15,718	14,893
Total securities	572,758	574,409
Loans held for sale	463
Loans:
Total loans	2,944,005	2,902,690
Less: Allowance for credit losses	(26,607)	(25,860)
Net loans	2,917,398	2,876,830
Premises and equipment, net	47,549	47,622
Goodwill	119,477	119,477
Other intangible assets	5,568	5,801
Cash surrender value of bank-owned life insurance	78,436	81,197
Deferred tax assets, net	22,858	24,443
Other assets	81,269	87,729
Total assets	3,928,478	3,909,803
Deposits:
Demand	636,710	676,350
NOW	908,483	900,730
Savings	628,798	664,514
Money market	475,577	478,398
Time	404,246	323,439
Total deposits	3,053,814	3,043,431
Borrowings:
Senior	338,244	333,957
Subordinated	60,330	60,289
Total borrowings	398,574	394,246
Other liabilities	67,680	78,676
Total liabilities	3,520,068	3,516,353
Shareholders' equity
Capital stock, par value $2.00; authorized 20,000,000 shares; issued 16,428,388 shares; outstanding 15,124,451 shares and 15,001,329 shares at March 31, 2023 and December 31, 2022 respectively	32,857	32,857
Additional paid-in capital	192,261	191,922
Retained earnings	252,884	243,815
Accumulated other comprehensive loss	(53,151)	(58,340)
Less: 1,303,937 and 1,345,700 shares of treasury stock, at cost, at March 31, 2023 and December 31, 2022, respectively	(16,441)	(16,804)
Total shareholders' equity	408,410	393,450
Total liabilities and shareholders' equity	$ 3,928,478	$ 3,909,803

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Capital stock, par value (in dollars per share)	$ 2	$ 2
Capital stock, shares authorized (in shares)	20,000,000	20,000,000
Capital stock, shares issued (in shares)	16,428,388	16,428,388
Capital stock, shares outstanding (in shares)	15,124,451	15,001,329
Treasury stock (in shares)	1,303,937	1,345,700

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Interest and dividend income
Loans	$ 34,560	$ 22,671
Securities and other	5,791	3,826
Total interest and dividend income	40,351	26,497
Interest expense
Deposits	5,265	1,189
Borrowings	4,180	1,010
Total interest expense	9,445	2,199
Net interest income	30,906	24,298
Provision for credit losses	798	377
Net interest income after provision for credit losses	30,108	23,921
Non-interest income
Trust and investment management fee income	3,555	3,754
Customer service fees	3,677	3,616
Gain on sales of securities, net	34	9
Mortgage banking income	279	624
Bank-owned life insurance income	1,148	501
Customer derivative income	132	18
Other income	359	787
Total non-interest income	9,184	9,309
Non-interest expense
Salaries and employee benefits	12,771	12,147
Occupancy and equipment	4,414	4,423
Gain on sales of premises and equipment, net	(13)	(75)
Outside services	356	340
Professional services	426	173
Communication	162	225
Marketing	409	263
Amortization of intangible assets	233	233
Acquisition, conversion and other expenses	20	325
Provision for unfunded commitments	(175)	326
Other expenses	4,101	3,506
Total non-interest expense	22,704	21,886
Income before income taxes	16,588	11,344
Income tax expense	3,576	2,232
Net income	$ 13,012	$ 9,112
Earnings per share:
Basic (in dollars per share)	$ 0.86	$ 0.61
Diluted (in dollars per share)	$ 0.86	$ 0.60
Weighted average common shares outstanding:
Basic (in shares)	15,109,847	15,010,834
Diluted (in shares)	15,190,089	15,101,785

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 13,012	$ 9,112
Other comprehensive income (loss), before tax:
Changes in unrealized gain (loss) on securities available for sale	6,006	(28,844)
Changes in unrealized gain (loss) on hedging derivatives	767	(1,881)
Income taxes related to other comprehensive income:
Changes in unrealized (gain) loss on securities available for sale	(1,406)	6,634
Changes in unrealized (gain) loss on hedging derivatives	(178)	433
Total other comprehensive income (loss)	5,189	(23,658)
Total comprehensive income (loss)	$ 18,201	$ (14,546)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Common stock amount	Additional paid-in capital	Retained earnings	Accumulated other comprehensive income (loss)	Treasury stock	Total
Balance at beginning of period at Dec. 31, 2021	$ 32,857	$ 190,876	$ 215,592	$ 2,303	$ (17,481)	$ 424,147
Increase (Decrease) in Stockholders' Equity
Net income			9,112			9,112
Other comprehensive loss				(23,658)		(23,658)
Cash dividends declared			(3,603)			(3,603)
Net issuance to employee stock plans, including related tax effects		436			111	547
Recognition of stock based compensation		454				454
Balance at end of period at Mar. 31, 2022	32,857	191,766	221,101	(21,355)	(17,370)	406,999
Balance at beginning of period at Dec. 31, 2022	32,857	191,922	243,815	(58,340)	(16,804)	393,450
Increase (Decrease) in Stockholders' Equity
Net income			13,012			13,012
Other comprehensive loss				5,189		5,189
Cash dividends declared			(3,943)			(3,943)
Net issuance to employee stock plans, including related tax effects		40			363	403
Recognition of stock based compensation		299				299
Balance at end of period at Mar. 31, 2023	$ 32,857	$ 192,261	$ 252,884	$ (53,151)	$ (16,441)	$ 408,410

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Cash dividends declared (in dollars per share)	$ 0.26	$ 0.24
Net issuance (in shares)	41,763	11,277

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net income	$ 13,012	$ 9,112
Adjustments to reconcile net income to net cash provided by operating activities:
Net change in loans held for sale	463	2,534
Provision for credit losses	798	377
Net amortization of securities	540	832
Change in unamortized net loan costs and premiums	216	(1,370)
Premises and equipment depreciation	1,048	1,067
Stock-based compensation expense	299	454
Amortization of other intangibles	233	233
Income from cash surrender value of bank-owned life insurance policies	(1,148)	(501)
Gain on sales of securities, net	(34)	(9)
Amortization (accretion) of right-of-use lease assets	298	296
(Decrease) increase in lease liabilities	(290)	(280)
Loss (gain) on premises and equipment, net	(13)	(75)
Net change in other assets and liabilities	1,931	(6,469)
Net cash provided by operating activities	17,353	6,201
Cash flows from investing activities:
Proceeds from sales, maturities, calls and prepayments of securities available for sale	2,534	27,670
Purchases of securities available for sale	(1,000)	(47,721)
Net change in loans	(41,582)	(121,187)
Purchase of Federal Home Loan Bank stock	(5,030)
Proceeds from sale of Federal Home Loan Bank stock	4,205
Purchase of premises and equipment, net	(1,153)	(602)
Proceeds from death benefit of bank-owned life insurance policy	3,909
Net cash (used in) provided by investing activities	(38,117)	(141,840)
Cash flows from financing activities:
Net change in deposits	10,383	(781)
Net change in short-term borrowings	4,290	141
Repayments of long-term borrowings	(3)	(5)
Net change subordinated debt issuance costs	41
Net issuance to employee stock plans	403	547
Cash dividends paid on common stock	(3,943)	(3,603)
Net cash provided by (used in) financing activities	11,171	(3,701)
Net change in cash and cash equivalents	(9,593)	(139,340)
Cash and cash equivalents at beginning of year	92,295	250,389
Cash and cash equivalents at end of period	82,702	111,049
Supplemental cash flow information:
Interest paid	9,417	1,717
Income taxes paid, net	$ 5,219	$ 1,073

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
BASIS OF PRESENTATION	Mar. 31, 2023
BASIS OF PRESENTATION
BASIS OF PRESENTATION	NOTE 1. BASIS OF PRESENTATION The consolidated financial statements (unaudited) (the “financial statements”) of Bar Harbor Bankshares and its subsidiaries (the “Company,” “we,” “our,” “us” or similar terms) have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company is a Maine Financial Institution Holding Company for the purposes of the laws of the State of Maine, and as such is subject to the jurisdiction of the Superintendent of the Maine Bureau of Financial Institutions. These financial statements include our accounts, the accounts of our wholly owned subsidiary Bar Harbor Bank & Trust (the “Bank”) and the Bank’s consolidated subsidiaries. The results of operations of companies or assets acquired are included only from the dates of acquisition. All material wholly owned and majority owned subsidiaries are consolidated unless GAAP requires otherwise. In addition, these interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X, and accordingly, certain information and footnote disclosures normally included in financial statements prepared according to GAAP have been omitted. The results for any interim period are not necessarily indicative of results for the full year. These consolidated financial statements should be read in conjunction with the audited financial statements and note disclosures in the Form 10-K previously filed with the Securities and Exchange Commission (the "SEC"). In management's opinion, all adjustments necessary for a fair statement are reflected in the interim periods presented. Reclassifications: Recent Accounting Pronouncements The following table provides a brief description of recent accounting standards updates (“ASU”) that could have a material impact to the Company’s consolidated financial statements upon adoption: Standard Description Required Date of Adoption Effect on financial statements Standards Adopted in 2023 ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings ("TDRs") and Vintage Disclosures The amendments in this update eliminate TDR recognition and measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an exisiting loan. The amendments enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. January 1, 2023 The adoption of this ASU did not have a material impact on our consolidated financial statements. Standards Not Yet Adopted ASU 2023-02 Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. December 15, 2023, including interim periods within the fiscal year We do not expect adoption of this ASU to have a material impact on our consolidated financial statements.

SECURITIES AVAILABLE FOR SALE

SECURITIES AVAILABLE FOR SALE	3 Months Ended
SECURITIES AVAILABLE FOR SALE	Mar. 31, 2023
SECURITIES AVAILABLE FOR SALE
SECURITIES AVAILABLE FOR SALE	NOTE 2. SECURITIES AVAILABLE FOR SALE The following is a summary of securities available for sale (“AFS”): Gross Gross Unrealized Unrealized (in thousands) Amortized Cost Gains Losses Fair Value March 31, 2023 Mortgage-backed securities: US Government-sponsored enterprises $ 245,482 $ 41 $ (31,223) $ 214,300 US Government agency 91,092 43 (10,197) 80,938 Private label 62,101 34 (3,635) 58,500 Obligations of states and political subdivisions thereof 122,686 5,543 (17,064) 111,165 Corporate bonds 101,505 17 (9,385) 92,137 Total securities available for sale $ 622,866 $ 5,678 $ (71,504) $ 557,040 Gross Gross Unrealized Unrealized (in thousands) Amortized Cost Gains Losses Fair Value December 31, 2022 Mortgage-backed securities: US Government-sponsored enterprises $ 249,838 $ 14 $ (34,825) $ 215,027 US Government agency 93,010 21 (10,765) 82,266 Private label 64,056 34 (3,936) 60,154 Obligations of states and political subdivisions thereof 121,939 7,149 (21,351) 107,737 Corporate bonds 102,505 33 (8,206) 94,332 Total securities available for sale $ 631,348 $ 7,251 $ (79,083) $ 559,516 Credit Quality Information We monitor the credit quality of available for sale debt securities through credit ratings from various rating agencies and substantial price changes. In an effort to make informed decisions, we utilize credit ratings that express opinions about the credit quality of a security. Securities are triggered for further review in the quarter if the security has significant fluctuations in ratings, drops below investment grade, or significant pricing changes. For securities without credit ratings, we utilize other financial information indicating the financial health of the underlying municipality, agency, or organization associated with the underlying security. As of March 31, 2023 and December 31, 2022, we carried no allowance on available for sale debt securities in accordance with ASU 2016-13, Measurement of Credit Losses on Financial Instruments. The amortized cost and estimated fair value of available for sale securities segregated by contractual maturity at March 31, 2023 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities are shown in total, as their maturities are highly variable. Available for sale (in thousands) Amortized Cost Fair Value Within 1 year $ 195 $ 196 Over 1 year to 5 years 37,278 34,483 Over 5 years to 10 years 57,610 57,009 Over 10 years 129,108 111,614 Total bonds and obligations 224,191 203,302 Mortgage-backed securities 398,675 353,738 Total securities available for sale $ 622,866 $ 557,040 The following table presents the gains and losses from the sale of AFS securities for the periods presented: Three Months Ended March 31, (in thousands) 2023 2022 Gross gains on sales of available for sale securities $ 34 $ 9 Gross losses on sales of available for sale securities — — Net gains on sale of available for sale securities $ 34 $ 9 Securities with unrealized losses, segregated by the duration of their continuous unrealized loss positions, are summarized as follows: Less Than Twelve Months Over Twelve Months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (in thousands) Losses Value Losses Value Losses Value March 31, 2023 Mortgage-backed securities: US Government-sponsored enterprises $ 1,324 $ 35,076 $ 29,899 $ 174,319 $ 31,223 $ 209,395 US Government agency 834 22,846 9,363 53,711 10,197 76,557 Private label 5 94 3,630 58,372 3,635 58,466 Obligations of states and political subdivisions thereof 184 9,439 16,880 94,281 17,064 103,720 Corporate bonds 3,877 43,045 5,508 45,992 9,385 89,037 Total securities available for sale $ 6,224 $ 110,500 $ 65,280 $ 426,675 $ 71,504 $ 537,175 Less Than Twelve Months Over Twelve Months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (in thousands) Losses Value Losses Value Losses Value December 31, 2022 Mortgage-backed securities: US Government-sponsored enterprises $ 7,005 $ 82,483 $ 27,820 $ 127,745 $ 34,825 $ 210,228 US Government agency 2,902 42,865 7,863 34,988 10,765 77,853 Private label 841 15,694 3,095 44,396 3,936 60,090 Obligations of states and political subdivisions thereof 7,990 48,799 13,361 55,702 21,351 104,501 Corporate bonds 4,733 65,279 3,473 25,027 8,206 90,306 Total securities available for sale $ 23,471 $ 255,120 $ 55,612 $ 287,858 $ 79,083 $ 542,978 We expect to recover the amortized cost basis on all securities in our AFS portfolio. Furthermore, we do not intend to sell nor do we anticipate that we will be required to sell any securities in an unrealized loss position as of March 31, 2023, prior to this recovery. Our ability and intent to hold these securities until recovery is supported by our capital and liquidity positions as well as historically low portfolio turnover. The following summarizes, by investment security type, the impact of securities in an unrealized loss position at March 31, 2023: US Government-sponsored enterprises 466 out of the total 516 securities in our portfolios of AFS US Government-sponsored enterprises were in unrealized loss positions. Aggregate unrealized losses represented 12.98% of the amortized cost of securities in unrealized loss positions. The Federal National Mortgage Association and Federal Home Loan Mortgage Corporation guarantee the contractual cash flows of all of our US Government-sponsored enterprises. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. US Government agency 139 out of the total 160 securities in our portfolios of AFS US Government agency securities were in unrealized loss positions. Aggregate unrealized losses represented 11.75% of the amortized cost of securities in unrealized loss positions. The Government National Mortgage Association guarantees the contractual cash flows of all of our US Government agency securities. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. Private label 26 of the total 28 securities in our portfolio of AFS private label mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 5.85% of the amortized cost of securities in unrealized loss positions. We expect to receive all of the future contractual cash flows related to the amortized cost on these securities. Obligations of states and political subdivisions thereof 53 of the total 76 securities in our portfolio of AFS municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 14.81% of the amortized cost of securities in unrealized loss positions. We continually monitor the municipal bond sector of the market carefully and periodically evaluate the appropriate level of exposure to the market. At this time, we think the bonds in this portfolio carry minimal risk of default, and we are appropriately compensated for the risk. There were no material underlying credit downgrades during the quarter. Corporate bonds 30 out of the total 33 securities in our portfolio of AFS corporate bonds were in an unrealized loss position. The aggregate unrealized loss represents 9.53% of the amortized cost of bonds in unrealized loss positions. We review the financial strength of all of these bonds, and we have concluded that the amortized cost remains supported by the expected future cash flows of these securities. The most recent review includes all bond issuers and their current credit ratings, financial performance and capitalization.

LOANS AND ALLOWANCE FOR CREDIT

LOANS AND ALLOWANCE FOR CREDIT LOSSES	3 Months Ended
LOANS AND ALLOWANCE FOR CREDIT LOSSES	Mar. 31, 2023
LOANS AND ALLOWANCE FOR CREDIT LOSSES
LOANS AND ALLOWANCE FOR CREDIT LOSSES	NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES We evaluate risk characteristics of loans based on regulatory call report code with segmentation based on the underlying collateral for certain loan types. The following is a summary of total loans by regulatory call report code segmentation based on underlying collateral for certain loan types: March 31, December 31, (in thousands) 2023 2022 Commercial construction $ 132,960 $ 117,577 Commercial real estate owner occupied 261,365 244,814 Commercial real estate non-owner occupied 1,149,030 1,146,674 Tax exempt 43,253 42,879 Commercial and industrial 298,384 297,112 Residential real estate 961,701 954,968 Home equity 89,777 90,865 Consumer other 7,535 7,801 Total loans 2,944,005 2,902,690 Allowance for credit losses 26,607 25,860 Net loans $ 2,917,398 $ 2,876,830 Total unamortized net costs and premiums included in loan totals were as follows: March 31, December 31, (in thousands) 2023 2022 Net unamortized loan origination costs $ 3,233 $ 3,184 Net unamortized fair value discount on acquired loans (3,339) (3,506) Total $ (106) $ (322) We exclude accrued interest receivable from the amortized cost basis of loans disclosed throughout this footnote. As of March 31, 2023 and December 31, 2022, accrued interest receivable for loans totaled $11.2 million and $10.7 million, respectively, and is included in the “other assets” line item on the consolidated balance sheets. Characteristics of each loan portfolio segment are as follows: Commercial construction Commercial real estate owner occupied and non-owner occupied Tax Exempt Commercial and industrial loans Residential real estate Home equity - Consumer other Allowance for Credit Losses The Allowance for Credit Losses (“ACL”) is comprised of the allowance for loan losses and the allowance for unfunded commitments which is accounted for as a separate liability in other liabilities on the balance sheet. The level of the ACL represents management’s estimate of expected credit losses over the expected life of the loans at the balance sheet date. The ACL is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the allowance when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged off. The ACL is comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis, generally larger non-accruing commercial loans. The activity in the ACL for the periods ended are as follows: At or for the Three Months Ended March 31, 2023 Balance at Beginning of Balance at (in thousands) Period Charge Offs Recoveries Provision End of Period Commercial construction $ 2,579 $ — $ — $ 455 $ 3,034 Commercial real estate owner occupied 2,189 — — 159 2,348 Commercial real estate non-owner occupied 9,341 — — 3 9,344 Tax exempt 93 — — — 93 Commercial and industrial 3,493 (1) 6 117 3,615 Residential real estate 7,274 (4) 8 27 7,305 Home equity 811 — 2 (21) 792 Consumer other 80 (63) 1 58 76 Total $ 25,860 $ (68) $ 17 $ 798 $ 26,607 At or for the Three Months Ended March 31, 2022 Balance at Beginning of Balance at (in thousands) Period Charge Offs Recoveries Provision End of Period Commercial construction $ 2,111 $ — $ — $ (1,110) $ 1,001 Commercial real estate owner occupied 2,751 — 54 (132) 2,673 Commercial real estate non-owner occupied 5,650 — — 1,357 7,007 Tax exempt 86 — — (86) — Commercial and industrial 5,369 — 25 (655) 4,739 Residential real estate 5,862 (15) 91 940 6,878 Home equity 814 (2) 5 10 827 Consumer other 75 (66) 3 53 65 Total $ 22,718 $ (83) $ 178 $ 377 $ 23,190 Unfunded Commitments The ACL on unfunded commitments is recognized as a liability (other liabilities on the consolidated balance sheet), with adjustments to the reserve recognized in other non-interest expense in the consolidated statement of operations. The activity in the ACL on unfunded commitments for the periods ended was as follows: (in thousands) Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Beginning Balance $ 3,910 $ 2,152 Provision for credit losses (175) 30 Ending Balance $ 3,735 $ 2,182 Loan Origination/Risk Management: Credit Quality Indicators: The following are the definitions of our credit quality indicators: Pass: Special Mention: Substandard: Doubtful: deferred until its more exact status is determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral and refinancing plans. The entire amount of the loan might not be classified as doubtful when collection of a specific portion appears highly probable. Loans are generally not classified doubtful for an extended period of time (i.e., over a year). Loss: The following table presents our loans by year of origination, loan segmentation and risk indicator as of March 31, 2023: (in thousands) 2023 2022 2021 2020 2019 Prior Total Commercial construction Risk rating: Pass $ 375 $ 67,868 $ 36,035 $ 3,541 $ — $ 954 $ 108,773 Special mention — — — 24,187 — — 24,187 Substandard — — — — — — — Total $ 375 $ 67,868 $ 36,035 $ 27,728 $ — $ 954 $ 132,960 Current period gross write-offs — — — — — — — Commercial real estate owner occupied Risk rating: Pass $ 2,829 $ 30,185 $ 23,375 $ 22,719 $ 30,348 $ 146,061 $ 255,517 Special mention — — — 240 659 531 1,430 Substandard — — — — — 4,282 4,282 Doubtful — — — — — 136 136 Total $ 2,829 $ 30,185 $ 23,375 $ 22,959 $ 31,007 $ 151,010 $ 261,365 Current period gross write-offs — — — — — — — Commercial real estate non-owner occupied Risk rating: Pass $ 2,795 $ 372,122 $ 228,413 $ 144,782 $ 89,518 $ 270,794 $ 1,108,424 Special mention — — 21,498 — — 4,135 25,633 Substandard — — — — 115 14,722 14,837 Doubtful — — — — — 136 136 Total $ 2,795 $ 372,122 $ 249,911 $ 144,782 $ 89,633 $ 289,787 $ 1,149,030 Current period gross write-offs — — — — — — — Tax exempt Risk rating: Pass $ 2 $ 10,612 $ 946 $ 247 $ 714 $ 30,732 $ 43,253 Special mention — — — — — — — Substandard — — — — — — — Total $ 2 $ 10,612 $ 946 $ 247 $ 714 $ 30,732 $ 43,253 Current period gross write-offs — — — — — — — Commercial and industrial Risk rating: Pass $ 14,313 $ 74,242 $ 26,272 $ 59,235 $ 29,188 $ 88,912 $ 292,162 Special mention 45 1,403 — 48 956 735 3,187 Substandard — 102 142 120 335 2,336 3,035 Doubtful — — — — — — — Total $ 14,358 $ 75,747 $ 26,414 $ 59,403 $ 30,479 $ 91,983 $ 298,384 Current period gross write-offs — — — — — 1 1 (in thousands) 2023 2022 2021 2020 2019 Prior Total Residential real estate Performing $ 21,385 $ 196,948 $ 176,209 $ 109,432 $ 67,756 $ 385,905 $ 957,635 Nonperforming — — 43 — 48 3,975 4,066 Total $ 21,385 $ 196,948 $ 176,252 $ 109,432 $ 67,804 $ 389,880 $ 961,701 Current period gross write-offs — — — — — 4 4 Home equity Performing $ 3,428 $ 18,315 $ 10,306 $ 7,383 $ 5,953 $ 43,459 $ 88,844 Nonperforming — — — — — 933 933 Total $ 3,428 $ 18,315 $ 10,306 $ 7,383 $ 5,953 $ 44,392 $ 89,777 Current period gross write-offs — — — — — — — Consumer other Performing $ 1,862 $ 2,659 $ 1,150 $ 718 $ 181 $ 961 $ 7,531 Nonperforming — — — 4 — — 4 Total $ 1,862 $ 2,659 $ 1,150 $ 722 $ 181 $ 961 $ 7,535 Current period gross write-offs — 52 8 2 — $ 1 63 Total Loans $ 47,034 $ 774,456 $ 524,389 $ 372,656 $ 225,771 $ 999,699 $ 2,944,005 The following table presents our loans by year of origination, loan segmentation and risk indicator as of December 31, 2022: (in thousands) 2022 2021 2020 2019 2018 Prior Total Commercial construction Risk rating: Pass $ 49,722 $ 38,837 $ 2,865 $ 1,011 $ 964 $ — $ 93,399 Special mention — — 24,178 — — — 24,178 Substandard — — — — — — — Total $ 49,722 $ 38,837 $ 27,043 $ 1,011 $ 964 $ — $ 117,577 Commercial real estate owner occupied Risk rating: Pass $ 22,371 $ 11,290 $ 23,014 $ 31,352 $ 46,398 $ 103,295 $ 237,720 Special mention — — 243 666 173 1,870 2,952 Substandard — — — — 77 3,924 4,001 Doubtful — — — — — 141 141 Total $ 22,371 $ 11,290 $ 23,257 $ 32,018 $ 46,648 $ 109,230 $ 244,814 Commercial real estate non-owner occupied Risk rating: Pass $ 370,856 $ 228,414 $ 145,096 $ 88,111 $ 35,213 $ 238,395 $ 1,106,085 Special mention — 21,390 — 127 911 16,612 39,040 Substandard — — — — — 1,404 1,404 Doubtful — — — — — 145 145 Total $ 370,856 $ 249,804 $ 145,096 $ 88,238 $ 36,124 $ 256,556 $ 1,146,674 Tax exempt Risk rating: Pass $ 8,686 $ 1,020 $ 252 $ 772 $ 13,231 $ 18,918 $ 42,879 Special mention — — — — — — — Substandard — — — — — — — Total $ 8,686 $ 1,020 $ 252 $ 772 $ 13,231 $ 18,918 $ 42,879 Commercial and industrial Risk rating: Pass $ 83,151 $ 26,948 $ 62,835 $ 27,491 $ 9,511 $ 81,316 $ 291,252 Special mention 1,450 — 53 803 201 619 3,126 Substandard — 113 111 65 299 2,106 2,694 Doubtful — — — — — 40 40 Total $ 84,601 $ 27,061 $ 62,999 $ 28,359 $ 10,011 $ 84,081 $ 297,112 (in thousands) 2022 2021 2020 2019 2018 Prior Total Residential real estate Performing $ 195,320 $ 177,480 $ 111,021 $ 69,170 $ 47,797 $ 349,795 $ 950,583 Nonperforming — 45 — 49 641 3,650 4,385 Total $ 195,320 $ 177,525 $ 111,021 $ 69,219 $ 48,438 $ 353,445 $ 954,968 Home equity Performing $ 17,107 $ 10,638 $ 8,139 $ 6,830 $ 6,997 $ 40,191 $ 89,902 Nonperforming — — — — — 963 963 Total $ 17,107 $ 10,638 $ 8,139 $ 6,830 $ 6,997 $ 41,154 $ 90,865 Consumer other Performing $ 4,321 $ 1,341 $ 863 $ 265 $ 64 $ 942 $ 7,796 Nonperforming — — 5 — — — 5 Total $ 4,321 $ 1,341 $ 868 $ 265 $ 64 $ 942 $ 7,801 Total Loans $ 752,984 $ 517,516 $ 378,675 $ 226,712 $ 162,477 $ 864,326 $ 2,902,690 Past Dues The following is a summary of past due loans for the periods ended: March 31, 2023 (in thousands) 30-59 60-89 90+ Total Past Due Current Total Loans Commercial construction $ — $ — $ — $ — $ 132,960 $ 132,960 Commercial real estate owner occupied 197 227 308 732 260,633 261,365 Commercial real estate non-owner occupied 352 — 133 485 1,148,545 1,149,030 Tax exempt — — — — 43,253 43,253 Commercial and industrial 261 281 134 676 297,708 298,384 Residential real estate 5,325 393 1,728 7,446 954,255 961,701 Home equity 821 — 276 1,097 88,680 89,777 Consumer other 14 9 — 23 7,512 7,535 Total $ 6,970 $ 910 $ 2,579 $ 10,459 $ 2,933,546 $ 2,944,005 December 31, 2022 (in thousands) 30-59 60-89 90+ Total Past Due Current Total Loans Commercial construction $ — $ — $ — $ — $ 117,577 $ 117,577 Commercial real estate owner occupied 385 — — 385 244,429 244,814 Commercial real estate non-owner occupied 45 145 139 329 1,146,345 1,146,674 Tax exempt — — — — 42,879 42,879 Commercial and industrial 169 — 9 178 296,934 297,112 Residential real estate 803 348 2,029 3,180 951,788 954,968 Home equity 216 160 246 622 90,243 90,865 Consumer other 41 8 — 49 7,752 7,801 Total $ 1,659 $ 661 $ 2,423 $ 4,743 $ 2,897,947 $ 2,902,690 Non-Accrual Loans The following is a summary of non-accrual loans for the periods ended: March 31, 2023 Nonaccrual With No 90+ Days Past (in thousands) Nonaccrual Related Allowance Due and Accruing Commercial construction $ — $ — $ — Commercial real estate owner occupied 432 362 — Commercial real estate non-owner occupied 529 396 — Tax exempt — — — Commercial and industrial 1,832 138 — Residential real estate 4,066 1,181 93 Home equity 933 51 45 Consumer other 4 — — Total $ 7,796 $ 2,128 $ 138 December 31, 2022 Nonaccrual With No 90+ Days Past (in thousands) Nonaccrual Related Allowance Due and Accruing Commercial construction $ — $ — $ — Commercial real estate owner occupied 439 360 — Commercial real estate non-owner occupied 550 411 — Tax exempt — — — Commercial and industrial 207 145 — Residential real estate 4,385 1,361 202 Home equity 963 57 14 Consumer other 5 — — Total $ 6,549 $ 2,334 $ 216 Collateral Dependent Loans Loans that do not share risk characteristics are evaluated on an individual basis. For loans that are individually evaluated and collateral dependent, financial loans where we have determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and we expect repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. The following table presents the amortized cost basis of collateral-dependent loans by loan portfolio segment for the periods ended. March 31, 2023 December 31, 2022 (in thousands) Real Estate Other Real Estate Other Commercial construction $ — $ — $ — $ — Commercial real estate owner occupied 432 — 439 — Commercial real estate non-owner occupied 529 — 550 — Tax exempt — — — — Commercial and industrial 222 1,610 91 116 Residential real estate 4,066 — 4,385 — Home equity 933 — 963 — Consumer other 4 — 5 — Total $ 6,186 $ 1,610 $ 6,433 $ 116 Loan Modifications to Borrowers Experiencing Financial Difficulty In January 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”), which eliminated the accounting guidance for TDRs while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This guidance was applied on a prospective basis. Upon adoption of this guidance, we no longer establish a specific reserve for modifications to borrowers experiencing financial difficulty. Instead, these modifications are included in their respective category and a historical loss rate is applied to the current loan balance to arrive at the quantitative baseline portion of the ACL. These modifications typically result from loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. There were no qualifying modifications for the three months ended March 31, 2023 and 2022. Foreclosure Residential mortgage loans collateralized by real estate that are in the process of foreclosure as of March 31, 2023 and December 31, 2022 totaled $570 thousand and $253 thousand, respectively. Mortgage Banking Loans held for sale at March 31, 2023 had an unpaid principal balance of $463 thousand and there were no loans held for sale as of December 31, 2022. The interest rate exposure on loans held for sale is mitigated through forward delivery commitments with certain approved secondary market investors. We had no open forward delivery commitments at March 31, 2023 and December 31, 2022, respectively. For the three months ended March 31, 2023 and 2022, we sold $691 thousand and $22.2 million, respectively, of residential mortgage loans on the secondary market, which resulted in a net loss on sale of loans (net of costs, including direct and indirect origination costs) of $8 thousand and a gain of $182 thousand, respectively. We sell residential loans on the secondary market while primarily retaining the servicing of these loans. Servicing sold loans helps to maintain customer relationships and earn fees over the servicing period. Loans serviced for others are not included in the accompanying consolidated balance sheets. The risks inherent in servicing assets relate primarily to level of prepayments that result from shifts in interest rates. We obtain third-party valuations of our servicing assets portfolio quarterly, and the assumptions are reflected in Fair Value disclosures.

BORROWED FUNDS

BORROWED FUNDS	3 Months Ended
BORROWED FUNDS	Mar. 31, 2023
BORROWED FUNDS
BORROWED FUNDS	NOTE 4. BORROWED FUNDS Borrowed funds at March 31, 2023 and December 31, 2022 are summarized, as follows: March 31, 2023 December 31, 2022 Weighted Weighted (dollars in thousands) Carrying Value Average Rate Carrying Value Average Rate Short-term borrowings Advances from the FHLB $ 322,925 4.96 % $ 318,000 3.84 % Other borrowings 12,734 0.13 13,369 0.13 Total short-term borrowings 335,659 2.86 331,369 2.20 Long-term borrowings Advances from the FHLB 2,585 0.48 2,588 0.48 Subordinated borrowings 60,330 6.01 60,289 4.95 Total long-term borrowings 62,915 5.78 62,877 4.76 Total $ 398,574 3.15 % $ 394,246 2.45 % Short-term debt includes Federal Home Loan Bank of Boston (“FHLB”) advances with a remaining maturity of less than one year. We also maintain a $1.0 million secured line of credit with the FHLB that bears a daily adjustable rate calculated by the FHLB. There was no outstanding balance on the FHLB line of credit for the periods ended March 31, 2023 and December 31, 2022. We have the capacity to borrow funds on a secured basis utilizing the Bank Term Funding Program, the Borrower in Custody program, and the Discount Window at the Federal Reserve Bank of Boston (the “FRB”). At March 31, 2023, our available secured line of credit at the FRB was $177.5 million. We have pledged certain loans and securities to the FRB to support this arrangement. There were no borrowings with the FRB for the periods ended March 31, 2023 and December 31, 2022. We maintain, with a correspondent bank, an unused unsecured federal funds line of credit that has an aggregate overnight borrowing capacity of $50.0 million as of March 31, 2023 and December 31, 2022. There was no outstanding balance on the line of credit as of March 31, 2023 and December 31, 2022. Long-term FHLB advances consist of advances with a remaining maturity of more than one year. The advances outstanding at March 31, 2023 include no callable advances and amortizing advances of $285 thousand. There were no callable advances outstanding and $288 thousand of amortizing advances at December 31, 2022. All FHLB borrowings, including the line of credit, are secured by a blanket security agreement on certain qualified collateral, principally all residential first mortgage loans and certain securities. A summary of maturities of FHLB advances as of March 31, 2023 is, as follows: Weighted Average (in thousands, except rates) Amount Rate 2023 $ 322,925 4.96 % 2024 2,300 — 2025 — — 2026 — — 2027 — — Thereafter 285 4.32 Total FHLB advances $ 325,510 4.93 % On November 26, 2019, we entered into Subordinated Note Purchase Agreements with certain qualified institutional buyers and accredited investors pursuant to which we sold and issued $40.0 million in aggregate principal amount of subordinated notes due 2029 (the “Notes”). The Notes have a maturity date of December 1, 2029 and bear a fixed interest rate of 4.63% through December 1, 2024 payable semi-annually in arrears. From December 1, 2024 and thereafter the interest rate shall be reset quarterly to an interest rate per annum equal to the then current three-month Secured Overnight Financing Rate (SOFR) plus 3.27%. We have the option beginning with the interest payment date of December 1, 2024, and on any scheduled payment date thereafter, to redeem the Notes, in whole or in part upon prior approval of the Federal Reserve. The transaction included debt issuance costs of $291 thousand as of March 31, 2023 and $331 thousand net of amortization as of December 31, 2022, that are netted against the subordinated debt. We also have $20.6 million in floating Junior Subordinated Deferrable Interest Debentures (“Debentures”) issued by NHTB Capital Trust II (“Trust II”) and NHTB Capital Trust III (“Trust III”), which are both Connecticut statutory trusts. The Debentures were issued on March 30, 2004, carry a variable interest rate of three-month LIBOR plus 2.79%, and mature in 2034. The debt is callable by us at the time when any interest payment is made. Trust II and Trust III are considered variable interest entities for which we are not the primary beneficiary. Accordingly, Trust II and Trust III are not consolidated into our financial statements. Repurchase Agreements We can raise additional liquidity by entering into repurchase agreements at our discretion. In a security repurchase agreement transaction, we will generally sell a security, agreeing to repurchase either the same or substantially identical security on a specified later date, at a greater price than the original sales price. The difference between the sale price and purchase price is the cost of the proceeds, which is recorded as interest expense on the consolidated statements of income. The securities underlying the agreements are delivered to counterparties as security for the repurchase obligations. Since the securities are treated as collateral and the agreement does not qualify for a full transfer of effective control, the transactions do not meet the criteria to be classified as sales, and are therefore considered secured borrowing transactions for accounting purposes. Payments on such borrowings are interest only until the scheduled repurchase date. In a repurchase agreement, we are subject to the risk that the purchaser may default at maturity and not return the securities underlying the agreements. In order to minimize this potential risk, we either deal with established firms when entering into these transactions or with customers whose agreements stipulate that the securities underlying the agreement are not delivered to the customer and instead are held in segregated safekeeping accounts by our safekeeping agents. (in thousands) March 31, 2023 December 31, 2022 Customer Repurchase Agreements US Government-sponsored enterprises $ 12,734 $ 13,369 Total $ 12,734 $ 13,369

DEPOSITS

DEPOSITS	3 Months Ended
DEPOSITS	Mar. 31, 2023
DEPOSITS.
DEPOSITS	NOTE 5. DEPOSITS A summary of time deposits is, as follows: (in thousands) March 31, 2023 December 31, 2022 Time less than $100,000 $ 215,300 $ 157,263 Time $100,000 through $250,000 126,907 118,655 Time $250,000 or more 62,039 47,521 Total $ 404,246 $ 323,439 At March 31, 2023 and December 31, 2022, the scheduled maturities by year for time deposits are, as follows: (in thousands) March 31, 2023 December 31, 2022 Within 1 year $ 342,053 $ 262,338 Over 1 year to 2 years 41,116 37,937 Over 2 years to 3 years 11,416 12,936 Over 3 years to 4 years 4,880 5,410 Over 4 years to 5 years 4,381 4,319 Over 5 years 400 499 Total $ 404,246 $ 323,439 Included in time deposits are brokered deposits of $68.2 million and $15.1 million at March 31, 2023 and December 31, 2022, respectively. Also included in time deposits are reciprocal deposits of $25.3 million and $27.4 million at March 31, 2023 and December 31, 2022, respectively.

CAPITAL RATIOS AND SHAREHOLDERS

CAPITAL RATIOS AND SHAREHOLDERS' EQUITY	3 Months Ended
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY	Mar. 31, 2023
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY	NOTE 6. CAPITAL RATIOS AND SHAREHOLDERS’ EQUITY The actual and required capital ratios are, as follows: March 31, 2023 Minimum Regulatory Actual Capital Requirements (in thousands, except ratios) Amount Ratio Amount Ratio Company (consolidated) Total capital to risk-weighted assets $ 427,290 13.65 % $ 250,436 8.00 % Common equity tier 1 capital to risk-weighted assets 336,331 10.74 140,871 4.50 Tier 1 capital to risk-weighted assets 347,133 11.40 182,662 6.00 Tier 1 capital to average assets (leverage ratio) 347,133 9.33 148,896 4.00 Bank Total capital to risk-weighted assets $ 419,780 13.50 % $ 248,747 8.00 % Common equity tier 1 capital to risk-weighted assets 389,441 11.24 155,897 4.50 Tier 1 capital to risk-weighted assets 389,441 11.24 207,863 6.00 Tier 1 capital to average assets (leverage ratio) 389,441 10.57 147,326 4.00 December 31, 2022 Minimum Regulatory Actual Capital Requirements (in thousands, except ratios) Amount Ratio Amount Ratio Company (consolidated) Total capital to risk-weighted assets $ 416,900 13.50 % $ 247,041 8.00 % Common equity tier 1 capital to risk-weighted assets 326,513 10.57 138,960 4.50 Tier 1 capital to risk-weighted assets 347,133 11.24 185,281 6.00 Tier 1 capital to average assets (leverage ratio) 347,133 9.21 150,772 4.00 Bank Total capital to risk-weighted assets $ 410,053 13.29 % $ 246,812 8.00 % Common equity tier 1 capital to risk-weighted assets 380,286 12.33 138,832 4.50 Tier 1 capital to risk-weighted assets 380,286 12.33 185,110 6.00 Tier 1 capital to average assets (leverage ratio) 380,286 10.10 150,655 4.00 In order to be classified as “well-capitalized” under the relevant regulatory framework, (i) the Company must, on a consolidated basis, maintain a total risk-based capital ratio of 10.00% or greater and a Tier 1 risk-based capital ratio of 6.00% or greater; and (ii) the Bank must maintain a total risk-based capital ratio of 10.00% or greater, a Tier 1 risk-based capital ratio of 8.00% or greater, a common equity Tier 1 capital ratio of 6.50% or greater, and a leverage ratio of 5.00% or greater. At each date shown in the tables above, the Company and the Bank met the conditions to be classified as “well-capitalized” under the relevant regulatory framework. Accumulated other comprehensive (loss) income Components of accumulated other comprehensive income is, as follows: (in thousands) March 31, 2023 December 31, 2022 Accumulated other comprehensive income, before tax: Net unrealized loss on AFS securities $ (65,826) $ (71,832) Net unrealized loss on hedging derivatives (1,566) (2,333) Net unrealized loss on post-retirement plans (1,675) (1,691) Income taxes related to items of accumulated other comprehensive income: Net unrealized loss on AFS securities 15,180 16,586 Net unrealized loss on hedging derivatives 361 539 Net unrealized loss on post-retirement plans 375 391 Accumulated other comprehensive loss $ (53,151) $ (58,340) The following table presents the components of other comprehensive income (loss) for the three months ended March 31, 2023 and 2022: (in thousands) Before Tax Tax Effect Net of Tax Three Months Ended March 31, 2023 Net unrealized gain on AFS securities: Net unrealized gain arising during the period $ 6,040 $ (1,414) $ 4,626 Less: reclassification adjustment for gains (losses) realized in net income 34 (8) 26 Net unrealized gain on AFS securities 6,006 (1,406) 4,600 Net unrealized loss on hedging derivatives: Net unrealized gain arising during the period 767 (178) 589 Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized gain on cash flow hedging derivatives 767 (178) 589 Other comprehensive income (loss) $ 6,773 $ (1,584) $ 5,189 Three Months Ended March 31, 2022 Net unrealized loss on AFS securities: Net unrealized loss arising during the period $ (28,835) $ 6,632 $ (22,203) Less: reclassification adjustment for gains (losses) realized in net income 9 (2) 7 Net unrealized gain on AFS securities (28,844) 6,634 (22,210) Net unrealized loss on derivative hedgess: Net unrealized loss arising during the period (1,881) 433 (1,448) Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized loss on cash flow derivative hedges (1,881) 433 (1,448) Other comprehensive (loss) income $ (30,725) $ 7,067 $ (23,658) The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax impacts, for the three months ended March 31, 2023 and 2022: Net unrealized Net gain (loss) on Net unrealized gain (loss) effective cash loss on AFS flow hedging on pension (in thousands) Securities derivatives plans Total Three Months Ended March 31, 2023 Balance at beginning of period $ (55,246) $ (1,794) $ (1,300) $ (58,340) Other comprehensive loss before reclassifications 4,626 589 — 5,215 Less: amounts reclassified from accumulated other comprehensive income 26 — — 26 Total other comprehensive income 4,600 589 — 5,189 Balance at end of period $ (50,646) $ (1,205) $ (1,300) $ (53,151) Three Months Ended March 31, 2022 Balance at beginning of period $ 1,985 $ 870 $ (552) $ 2,303 Other comprehensive loss before reclassifications (22,203) (1,448) — (23,651) Less: amounts reclassified from accumulated other comprehensive income 7 — — 7 Total other comprehensive loss (22,210) (1,448) — (23,658) Balance at end of period $ (20,225) $ (578) $ (552) $ (21,355) The following tables presents the amounts reclassified out of each component of accumulated other comprehensive income for three months ended March 31, 2023 and 2022: Affected Line Item where (in thousands) 2023 2022 Net Income is Presented Net realized gains on AFS securities: Before tax (1) $ 34 $ 9 Non-interest income Tax effect (8) (2) Tax expense Total reclassifications for the period $ 26 $ 7 Affected Line Item where (in thousands) 2023 2022 Net Income is Presented Net realized loss on hedging derivatives: Before tax $ — $ — Non-interest income Tax effect — — Tax expense Total reclassifications for the period $ — $ — (1) Net realized gains before tax include $34 thousand realized gains for the three months ended March 31, 2023 and no gross realized losses. Net realized gains before tax include $9 thousand realized gains for the three months ended March 31, 2022 and no gross realized losses.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
EARNINGS PER SHARE	Mar. 31, 2023
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 7. EARNINGS PER SHARE The following table presents the calculation of earnings per share: Three Months Ended March 31, (in thousands, except per share and share data) 2023 2022 Net income $ 13,012 $ 9,112 Average number of basic common shares outstanding 15,109,847 15,010,834 Plus: dilutive effect of stock options and awards outstanding 80,242 90,951 Average number of diluted common shares outstanding (1) 15,190,089 15,101,785 Earnings per share: Basic $ 0.86 $ 0.61 Diluted 0.86 0.60 (1) Average diluted shares outstanding are computed using the treasury stock method.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES	3 Months Ended
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES	Mar. 31, 2023
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES	NOTE 8. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES We use derivative instruments to minimize fluctuations in earnings and cash flows caused by interest rate volatility. Our interest rate risk management strategy involves modifying the re-pricing characteristics of certain assets or liabilities so the changes in interest rates do not have a significant effect on net interest income. Thus, all of our derivative contracts are considered to be interest rate contracts. We recognize our derivative instruments on the consolidated balance sheet at fair value. On the date the derivative instrument is entered into, we designate whether the derivative is part of a hedging relationship (i.e., cash flow or fair value hedge). We formally document relationships between hedging instruments and hedged items, as well as our risk management objective and strategy for undertaking hedge transactions. We also assess, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting the changes in cash flows or fair values of hedged items. Changes in fair value of derivative instruments that are highly effective and qualify as cash flow hedges are recorded in other comprehensive income or loss. We offer derivative products in the form of interest rate swaps, to commercial loan customers to facilitate their risk management strategies. These instruments are executed through Master Netting Arrangements (“MNA”) with financial institution counterparties or Risk Participation Agreements (“RPA”) with commercial bank counterparties, for which we assumes a pro rata share of the credit exposure associated with a borrower's performance related to the derivative contract with the counterparty. The following tables present information about derivative assets and liabilities at March 31, 2023 and December 31, 2022: March 31, 2023 Weighted Notional Average Fair Value Location Fair Amount Maturity Asset (Liability) Value Asset (in thousands) (in years) (in thousands) (Liability) Cash flow hedges: Interest rate swap on wholesale fundings $ 75,000 1.8 $ 4,184 Other assets Interest rate swap on variable rate loans 50,000 3.0 (4,170) Other liabilities Total cash flow hedges 125,000 14 Fair value hedges: Interest rate swap on securities 37,190 6.3 3,952 Other assets Total fair value hedges 37,190 3,952 Economic hedges: Customer Loan Swaps-MNA Counterparty 192,269 5.5 (16,375) Other liabilities Customer Loan Swaps-RPA Counterparty 112,836 5.7 (23) Other liabilities Customer Loan Swaps-Customer 305,105 5.6 16,398 Other assets Total economic hedges 610,210 — Non-hedging derivatives: Interest rate lock commitments 552 0.2 8 Other assets Total non-hedging derivatives 552 8 Total $ 772,952 $ 3,974 December 31, 2022 Weighted Notional Average Fair Value Location Fair Amount Maturity Asset (Liability) Value Asset (in thousands) (in years) (in thousands) (Liability) Cash flow hedges: Interest rate swap on wholesale fundings $ 75,000 2.0 $ 4,978 Other assets Interest rate swap on variable rate loans 50,000 3.2 (4,941) Other liabilities Total cash flow hedges 125,000 37 Fair value hedges: Interest rate swap on securities 37,190 6.6 4,774 Other assets Total fair value hedges 37,190 4,774 Economic hedges: Forward sale commitments — — — Other assets Customer Loan Swaps-MNA Counterparty 191,987 5.8 (20,287) Other liabilities Customer Loan Swaps-RPA Counterparty 113,928 6.0 — Other liabilities Customer Loan Swaps-Customer 305,914 5.9 20,287 Other assets Total economic hedges 611,829 — Non-hedging derivatives: Interest rate lock commitments — — — Other assets Total non-hedging derivatives — — Total $ 774,019 $ 4,811 As of March 31, 2023 and December 31, 2022, the following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges: Cumulative Amount of Fair Location of Hedged Item on Carrying Amount of Hedged Value Hedging Adjustment in Balance Sheet Assets Carrying Amount March 31, 2023 Interest rate swap on securities Securities Available for Sale $ 31,658 $ (5,532) December 31, 2022 Interest rate swap on securities Securities Available for Sale $ 41,964 $ 4,774 Information about derivative assets and liabilities for the three months ended March 31, 2023 and March 31, 2022, follows: Three Months Ended March 31, 2023 Amount of Amount of Gain (Loss) Gain (Loss) Recognized in Reclassified Location of Amount of Other Location of Gain (Loss) from Other Gain (Loss) Gain (Loss) Comprehensive Reclassified from Other Comprehensive Recognized in Recognized (in thousands) Income Comprehensive Income Income Income in Income Cash flow hedges: Interest rate swap on wholesale funding $ (610) Interest expense $ — Interest expense $ 664 Interest rate swap on variable rate loans 592 Interest income — Interest income (466) Total cash flow hedges (18) — 198 Fair value hedges: Interest rate swap on securities 607 Interest income — Interest income 286 Total fair value hedges 607 — 286 Economic hedges: Forward commitments — Other income — Mortgage banking income — Total economic hedges — — — Non-hedging derivatives: Interest rate lock commitments — Other expense — Mortgage banking income 8 Total non-hedging derivatives — — 8 Total $ 589 $ — $ 492 Three Months Ended March 31, 2022 Amount of Amount of Gain (Loss) Gain (Loss) Recognized in Reclassified Location of Amount of Other Location of Gain (Loss) from Other Gain (Loss) Gain (Loss) Comprehensive Reclassified from Other Comprehensive Recognized in Recognized (in thousands) Income Comprehensive Income Income Income in Income Cash flow hedges: Interest rate swap on wholesale funding $ 2,191 Interest expense $ — Interest expense $ (113) Interest rate swap on variable rate loans (1,798) Interest income — Interest income 16 Total cash flow hedges 393 — (97) Fair value hedges: Interest rate swap on securities (1,841) Interest income — Interest income (135) Total economic hedges (1,841) — (135) Economic hedges: Forward commitments — Other income — Non-interest income 186 Total economic hedges — — 186 Non-hedging derivatives: Interest rate lock commitments — Other income — Non-interest income (288) Total non-hedging derivatives — — (288) Total $ (1,448) $ — $ (334) The effect of cash flow hedging and fair value accounting on the consolidated statements of income for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 Interest and Dividend Income Interest Expense (in thousands) Loans Securities and other Deposits Borrowings Non-interest Income Income and expense line items presented in the consolidated statements of income $ 34,560 $ 5,791 $ 5,265 $ 4,180 $ 9,184 The effects of cash flow and fair value hedging: Gain (loss) on cash flow hedges: Interest rate swap on wholesale funding — — — 664 — Interest rate swap on variable rate loans (466) — — — — Gain (loss) on fair value hedges: Interest rate swap on securities — 286 — — — Three Months Ended March 31, 2022 Interest and Dividend Income Interest Expense (in thousands) Loans Securities and other Deposits Borrowings Non-interest Income Income and expense line items presented in the consolidated statements of income $ 22,671 $ 3,826 $ 1,189 $ 1,010 $ 9,309 The effects of cash flow and fair value hedging: Gain (loss) on cash flow hedges: Interest rate swap on wholesale funding — — — (113) — Interest rate swap on variable rate loans 16 — — — — Gain (loss) on fair value hedges: Interest rate swap on securities — (135) — — — The effect of derivatives not designated as hedging instruments on the consolidated statements of income for the three months ended March 31, 2023 and 2022: Location of Gain (Loss) Recognized Three Months Ended March 31, (In thousands) in Non-interest Income 2023 2022 Derivatives not designated as hedging instruments Non-hedging derivatives: Interest rate lock commitments Mortgage banking income $ 8 $ (288) Cash flow hedges Interest rate swaps on wholesale funding As of March 31, 2023, we have two interest rate swaps on wholesale borrowings to limit our exposure to rising interest rates over a five-year term on 3-month FHLB borrowings or brokered certificates, or a combination thereof at each maturity date. The first of the two agreements was entered into in November 2019 with a $50.0 million notional amount and pays a fixed interest rate of 1.53%. A second agreement was entered into in April 2020 with a $25.0 million notional amount and pays a fixed rate of 0.59%. The financial institution counterparty pays us interest on the three-month LIBOR rate. We designated the swaps as cash flow hedges. Interest rate swap on variable rate loans We have an interest rate swap that effectively fixes our interest rate on $50 million of 1 month USD-LIBOR-BBA (or LIBOR less two days) based loan assets at 0.806% plus the credit spread on the loans that reprices on weighted average basis. The instrument is specifically designed to hedge the risk of changes in its cash flows from interest receipts attributable to changes in a contractually specified interest rate, on an amount of our variable rate loan assets equal to $50 million. We designated the swap as a cash flow hedge. Fair value hedges Interest rate swap on securities For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged asset or liability attributable to the hedged risk are recognized in current earnings. We utilize interest rate swaps designated as fair value hedges to mitigate the effect of changing interest rates on the fair values of fixed rate callable securities available-for-sale. The hedging strategy on securities converts the fixed interest rates to LIBOR-based variable interest rates. These derivatives are designated as partial term hedges of selected cash flows covering specified periods of time prior to the call dates of the hedged securities. During 2019, we entered into eight swap transactions with a notional amount of $37.2 million designated as fair value hedges. These derivatives are intended to protect against the effects of changing interest rates on the fair values of fixed rate securities. The fixed rates on the transactions have a weighted average of 1.696%. Economic hedges Forward sale commitments We utilize forward sale commitments on residential mortgage loans to hedge interest rate risk and the associated effects on the fair value of interest rate lock commitments and loans originated for sale. The forward sale commitments are accounted for as derivatives. We typically use a combination of best efforts and mandatory delivery contracts. The contracts are loan sale agreements where we commit to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. Generally, we enter into contracts just prior to the loan closing with a customer. As of March 31, 2023, there were no forward sale commitments. Customer loan derivatives We enter into customer loan derivatives to facilitate the risk management strategies for commercial banking customers. We mitigate this risk by entering into equal and offsetting loan swap agreements with highly rated third-party financial institutions. The loan swap agreements are free standing derivatives and are recorded at fair value in our consolidated balance sheet. We are party to MNAs with our financial institutional counterparties; however, we do not offset assets and liabilities under these arrangements for financial statement presentation purposes. The MNAs provide for a single net settlement of all loan swap agreements, as well as collateral or cash funds, in the event of default on, or termination of, any one contract. Collateral is provided by cash or securities received or posted by the counterparty with net liability positions, respectively, in accordance with contract thresholds. Gross Amounts Offset in the Consolidated Balance Sheet Derivative Cash Collateral (in thousands) Liabilities Derivative Assets Pledged Net Amount As of March 31, 2023 Customer Loan Derivatives: MNA counterparty $ (16,375) $ 16,375 $ — $ — RPA counterparty (23) 23 — — Total $ (16,398) $ 16,398 $ — $ — Gross Amounts Offset in the Consolidated Balance Sheet Derivative Cash Collateral (in thousands) Liabilities Derivative Assets Pledged Net Amount As of December 31, 2022 Customer Loan Derivatives: MNA counterparty $ (20,287) $ 20,287 $ — $ — RPA counterparty — — — — Total $ (20,287) $ 20,287 $ — $ — Non-hedging derivatives Interest rate lock commitments We enter into interest rate lock commitments (“IRLCs”) for residential mortgage loans, which commit us to lend funds to a potential borrower at a specific interest rate and within a specified period of time. IRLCs relate to the origination of residential mortgage loans that are held for sale and are considered derivative financial instruments under applicable accounting guidance. Outstanding IRLCs expose us to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan. The IRLCs are free standing derivatives, which are carried at fair value with changes recorded in non-interest income in our Consolidated Statements of Income. Changes in the fair value of IRLCs subsequent to inception are based on (i) changes in the fair value of the underlying loan resulting from the fulfillment of the commitment and (ii) changes in the probability when the loan will fund within the terms of the commitment, which is affected primarily by changes in interest rates and the passage of time.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
FAIR VALUE MEASUREMENTS	Mar. 31, 2023
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	NOTE 9. FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: March 31, 2023 Level 1 Level 2 Level 3 Total (in thousands) Inputs Inputs Inputs Fair Value Available for sale securities: Mortgage-backed securities: US Government-sponsored enterprises $ — $ 214,300 $ — $ 214,300 US Government agency — 80,938 — 80,938 Private label — 58,500 — 58,500 Obligations of states and political subdivisions thereof — 111,165 — 111,165 Corporate bonds — 92,137 — 92,137 Loans held for sale — 463 — 463 Derivative assets — 24,534 8 24,542 Derivative liabilities — (20,568) — (20,568) December 31, 2022 Level 1 Level 2 Level 3 Total (in thousands) Inputs Inputs Inputs Fair Value Available for sale securities: Mortgage-backed securities: US Government-sponsored enterprises $ — $ 215,027 $ — $ 215,027 US Government agency — 82,266 — 82,266 Private label — 60,154 — 60,154 Obligations of states and political subdivisions thereof — 107,737 — 107,737 Corporate bonds — 94,332 — 94,332 Loans held for sale — — — — Derivative assets — 30,039 — 30,039 Derivative liabilities — (25,228) — (25,228) Securities Available for Sale: Loans Held for Sale: Derivative Assets and Liabilities Cash Flow Hedges. Interest Rate Lock Commitments. Forward Sale Commitments . Customer Loan Derivatives. Although we have determined that the majority of the inputs used to value customer loan derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and counterparties. However, as of March 31, 2023, we assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we determined that the derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. The table below presents the changes in Level 3 assets and liabilities that were measured at fair value on a recurring basis for the three months ended March 31, 2023 and 2022: Assets (Liabilities) Interest Rate Lock Forward (in thousands) Commitments Commitments Three Months Ended March 31, 2023 Balance at beginning of period $ — $ — Realized loss recognized in non-interest income 8 — Balance at end of period $ 8 $ — Three Months Ended March 31, 2022 Balance at beginning of period $ 283 $ 15 Realized gain recognized in non-interest income (288) 186 Balance at end of period $ (5) $ 201 Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities is, as follows: Fair Value (in thousands, March 31, Valuation Unobservable Unobservable except ratios) 2023 Techniques Inputs Input Value Assets (Liabilities) Interest Rate Lock Commitment $ 8 Pull-through Rate Analysis Closing Ratio 76 % Pricing Model Origination Costs, per loan $ 1.7 Discount Cash Flows Mortgage Servicing Asset 1.0 % Total $ 8 Non-Recurring Fair Value Measurements We are required, on a non-recurring basis, to adjust the carrying value or provide valuation allowances for certain assets using fair value measurements in accordance with GAAP. The following is a summary of applicable non-recurring fair value measurements: March 31, 2023 December 31, 2022 March 31, 2023 Fair Value Measurement Date as of March 31, 2023 Level 3 Level 3 Total Level 3 (in thousands) Inputs Inputs Gains (Losses) Inputs Assets Individually evaluated loans $ 15,513 $ 16,477 $ (964) March 2023 Capitalized servicing rights 6,570 6,845 (275) March 2023 Premises held for sale 252 252 — March 2023 Total $ 22,335 $ 23,574 $ (1,239) There are no liabilities measured at fair value on a non-recurring basis in 2023 and 2022. Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets is, as follows: (in thousands, except ratios) Fair Value March 31, 2023 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Individually evaluated loans $ 11,945 Fair value of collateral-appraised value Loss severity 10% to 70% Appraised value $80 to $2,941 Individually evaluated loans 3,568 Discount cash flow Discount rate 3.38% to 6.38% Cash flows $3 to $707 Capitalized servicing rights 6,570 Discounted cash flow Constant prepayment rate 7.19% Discount rate 9.54% Premises held for sale 252 Fair value of asset less selling costs Appraised value $267 Selling Costs 6% Total $ 22,335 (a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individual properties. (in thousands, except ratios) Fair Value December 31, 2022 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Individually evaluated loans $ 13,587 Fair value of collateral-appraised value Loss severity 1% to 40% Appraised value $80 to $3,859 Individually evaluated loans 2,890 Discount cash flow Discount rate 3.63% to 6.38% Cash flows $100 to $539 Capitalized servicing rights 6,845 Discounted cash flow Constant prepayment rate 7.29% Discount rate 9.54% Premises held for sale 252 Fair value of asset less selling costs Appraised value $267 Selling Costs 6% Total $ 23,574 (a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individual properties. There were no Level 1 or Level 2 non-recurring fair value measurements for the periods ended March 31, 2023 and December 31, 2022. Individually evaluated loans. Capitalized loan servicing rights . Other real estate owned (“OREO”). Premises held for sale. Summary of Estimated Fair Values of Financial Instruments The estimated fair values, and related carrying amounts, of our financial instruments are included in the table below. Certain financial instruments and all non-financial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein may not necessarily represent the underlying fair value of the Company. March 31, 2023 Carrying Fair (in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 82,702 $ 82,702 $ 82,702 $ — $ — Securities available for sale 557,040 557,040 — 557,040 — FHLB stock 15,718 15,718 — 15,718 — Loans held for sale 463 463 — 463 — Net loans 2,917,398 2,789,397 — — 2,789,397 Accrued interest receivable 4,747 4,747 — 4,747 — Cash surrender value of bank-owned life insurance policies 78,436 8,436 — 8,436 — Derivative assets 24,542 24,542 — 24,534 8 Financial Liabilities Non-maturity deposits $ 2,649,568 $ 2,306,918 $ — $ 2,306,918 $ — Time deposits 404,246 395,594 — 395,594 — Securities sold under agreements to repurchase 12,733 12,733 — 12,733 — FHLB advances 325,511 325,334 — 325,334 — Subordinated borrowings 60,330 66,981 — 66,981 — Derivative liabilities 20,568 20,568 — 20,568 — December 31, 2022 Carrying Fair (in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 92,295 $ 92,295 $ 92,295 $ — $ — Securities available for sale 559,516 559,516 — 559,516 — FHLB stock 14,893 14,893 — 14,893 — Loans held for sale — — — — — Net loans 2,902,690 2,774,863 — — 2,774,863 Accrued interest receivable 4,257 4,257 — 4,257 — Cash surrender value of bank-owned life insurance policies 81,197 81,197 — 81,197 — Derivative assets 30,039 30,039 — 30,039 — Financial Liabilities Non-maturity deposits $ 2,719,992 $ 2,309,555 $ — $ 2,309,555 $ — Time deposits 323,439 315,180 — 315,180 — Securities sold under agreements to repurchase 13,369 13,369 — 13,369 — FHLB advances 320,588 320,244 — 320,244 — Subordinated borrowings 60,289 66,846 — 66,846 — Derivative liabilities 25,228 25,228 — 25,228 —

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	3 Months Ended
REVENUE FROM CONTRACTS WITH CUSTOMERS	Mar. 31, 2023
REVENUE FROM CONTRACTS WITH CUSTOMERS
REVENUE FROM CONTRACTS WITH CUSTOMERS	NOTE 10. REVENUE FROM CONTRACTS WITH CUSTOMERS We account for our various non-interest revenue streams and related contracts in accordance with “Revenue from Contracts with Customers” (“ASC 606”). ASC 606 is based on the consideration specified in the contract with a customer and excludes amounts collected on behalf of third parties. Revenue is recognized when we satisfy our performance obligation, which is generally when services are rendered and can be either satisfied at a point in time or over time. We recognize revenue at a point in time that is transactional in nature. We recognize revenue over time that is earned as services are performed and performance obligations are satisfied over time. A substantial portion of our revenue is specifically excluded from the scope of ASC 606. This exclusion is associated with financial instruments, including interest income on loans and investment securities, in addition to loan derivative income and gains on loan and investment sales. Disaggregation of Revenue The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606: Three Months Ended March 31, (in thousands) 2023 2022 Non-interest income within the scope of ASC 606: Trust management fees $ 3,091 $ 3,403 Financial services fees 464 351 Interchange fees 2,010 1,973 Customer deposit fees 1,429 1,372 Other customer service fees 238 271 Total non-interest income within the scope of ASC 606 7,232 7,370 Total non-interest income not within the scope of ASC 606 1,952 1,939 Total non-interest income $ 9,184 $ 9,309 Three Months Ended March 31, (in thousands) 2023 2022 Timing of Revenue Recognition Products and services transferred at a point in time $ 3,950 $ 3,757 Products and services transferred over time 3,282 3,613 Total $ 7,232 $ 7,370 Trust Management Fees The trust management business generates revenue through a range of fiduciary services including trust and estate administration, financial advice, and investment management to individuals, businesses, not-for-profit organizations, and municipalities. These fees are primarily earned over time as we charge our customers on a monthly or quarterly basis in accordance with investment advisory agreements. Fees are generally assessed based on a tiered scale of the market value of assets under management at month end. Certain fees, such as bill paying fees, distribution fees, real estate sale fees, and supplemental tax service fees, are recorded as revenue at a point in time upon the completion of the service. Financial Services Fees Bar Harbor Financial Services is a branch office of Infinex, an independent registered broker dealer offering securities and insurance products not affiliated with the Company or its subsidiaries. We have a revenue sharing agreement with Infinex for any financial service fee income generated. Financial services fees are recognized at a point in time upon the completion of service requirements. Interchange Fees We earn interchange fees from transaction fees that merchants pay whenever a customer uses a debit card to make a purchase from their store. The fees are paid to the card-issuing bank to cover handling costs, fraud, bad debt costs and the risk involved in approving the payment. Interchange fees are generally recognized as revenue at a point in time upon the completion of a debit card transaction. Customer Deposit Fees The Customer Deposit business offers a variety of deposit accounts with a range of interest rates, fee schedules and other terms, which are designed to meet the customer's financial needs. Additional depositor-related services provided to customers include ATM, bank-by-phone, internet banking, internet bill pay, mobile banking, and other cash management services which include remote deposit capture, ACH origination, and wire transfers. These customer deposit fees are generally recognized at a point in time upon the completion of the service. Other Customer Service Fees We have certain incentive and referral fee arrangements with independent third parties in which fees are earned for new account activity, product sales, or transaction volume generated for the respective third parties. We also earn a percentage of the fees generated from third-party credit card plans promoted through the Bank. Revenue from these incentive and referral fee arrangements are recognized over time using the right to invoice measure of progress. Contract Balances from Contracts with Customers The following table provides information about contract assets or receivables and contract liabilities or deferred revenues from contracts with customers: (in thousands) March 31, 2023 December 31, 2022 Balances from contracts with customers only: Other Assets $ 1,121 $ 1,211 Other Liabilities 2,285 2,345 The timing of revenue recognition, billings and cash collections results in contract assets or receivables and contract liabilities or deferred revenue on the consolidated balance sheets. For most customer contracts, fees are deducted directly from customer accounts and, therefore, there is no associated impact on the accounts receivable balance. For certain types of service contracts, we have an unconditional right to consideration under the service contract and an accounts receivable balance is recorded for services completed. When consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue after control of the products or services is transferred to the customer and all revenue recognition criteria have been met. Costs to Obtain and Fulfill a Contract We currently expense contract costs for processing and administrative fees for debit card transactions. We also expense custody fees and transactional costs associated with securities transactions as well as third-party tax preparation fees. We have elected the practical expedient in ASC 340-40-25-4, whereby we recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets we otherwise would have recognized is one year or less.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
BASIS OF PRESENTATION (Policies)	Mar. 31, 2023
BASIS OF PRESENTATION
Reclassifications	Reclassifications:
Recent Accounting Pronouncements	Recent Accounting Pronouncements The following table provides a brief description of recent accounting standards updates (“ASU”) that could have a material impact to the Company’s consolidated financial statements upon adoption: Standard Description Required Date of Adoption Effect on financial statements Standards Adopted in 2023 ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings ("TDRs") and Vintage Disclosures The amendments in this update eliminate TDR recognition and measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an exisiting loan. The amendments enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. January 1, 2023 The adoption of this ASU did not have a material impact on our consolidated financial statements. Standards Not Yet Adopted ASU 2023-02 Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. December 15, 2023, including interim periods within the fiscal year We do not expect adoption of this ASU to have a material impact on our consolidated financial statements.

SECURITIES AVAILABLE FOR SALE (

SECURITIES AVAILABLE FOR SALE (Tables)	3 Months Ended
SECURITIES AVAILABLE FOR SALE (Tables)	Mar. 31, 2023
SECURITIES AVAILABLE FOR SALE
Summary of Securities Available for Sale	Gross Gross Unrealized Unrealized (in thousands) Amortized Cost Gains Losses Fair Value March 31, 2023 Mortgage-backed securities: US Government-sponsored enterprises $ 245,482 $ 41 $ (31,223) $ 214,300 US Government agency 91,092 43 (10,197) 80,938 Private label 62,101 34 (3,635) 58,500 Obligations of states and political subdivisions thereof 122,686 5,543 (17,064) 111,165 Corporate bonds 101,505 17 (9,385) 92,137 Total securities available for sale $ 622,866 $ 5,678 $ (71,504) $ 557,040 Gross Gross Unrealized Unrealized (in thousands) Amortized Cost Gains Losses Fair Value December 31, 2022 Mortgage-backed securities: US Government-sponsored enterprises $ 249,838 $ 14 $ (34,825) $ 215,027 US Government agency 93,010 21 (10,765) 82,266 Private label 64,056 34 (3,936) 60,154 Obligations of states and political subdivisions thereof 121,939 7,149 (21,351) 107,737 Corporate bonds 102,505 33 (8,206) 94,332 Total securities available for sale $ 631,348 $ 7,251 $ (79,083) $ 559,516
Schedule of Amortized Cost and Estimated Fair Value of Available for Sale (AFS) Securities, Segregated by Contractual Maturity	Available for sale (in thousands) Amortized Cost Fair Value Within 1 year $ 195 $ 196 Over 1 year to 5 years 37,278 34,483 Over 5 years to 10 years 57,610 57,009 Over 10 years 129,108 111,614 Total bonds and obligations 224,191 203,302 Mortgage-backed securities 398,675 353,738 Total securities available for sale $ 622,866 $ 557,040
Schedule of Gains and Losses from Sale of AFS Securities	Three Months Ended March 31, (in thousands) 2023 2022 Gross gains on sales of available for sale securities $ 34 $ 9 Gross losses on sales of available for sale securities — — Net gains on sale of available for sale securities $ 34 $ 9
Schedule of Securities with Unrealized Losses, Segregated by the Duration of Continuous Unrealized Loss Positions	Less Than Twelve Months Over Twelve Months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (in thousands) Losses Value Losses Value Losses Value March 31, 2023 Mortgage-backed securities: US Government-sponsored enterprises $ 1,324 $ 35,076 $ 29,899 $ 174,319 $ 31,223 $ 209,395 US Government agency 834 22,846 9,363 53,711 10,197 76,557 Private label 5 94 3,630 58,372 3,635 58,466 Obligations of states and political subdivisions thereof 184 9,439 16,880 94,281 17,064 103,720 Corporate bonds 3,877 43,045 5,508 45,992 9,385 89,037 Total securities available for sale $ 6,224 $ 110,500 $ 65,280 $ 426,675 $ 71,504 $ 537,175 Less Than Twelve Months Over Twelve Months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (in thousands) Losses Value Losses Value Losses Value December 31, 2022 Mortgage-backed securities: US Government-sponsored enterprises $ 7,005 $ 82,483 $ 27,820 $ 127,745 $ 34,825 $ 210,228 US Government agency 2,902 42,865 7,863 34,988 10,765 77,853 Private label 841 15,694 3,095 44,396 3,936 60,090 Obligations of states and political subdivisions thereof 7,990 48,799 13,361 55,702 21,351 104,501 Corporate bonds 4,733 65,279 3,473 25,027 8,206 90,306 Total securities available for sale $ 23,471 $ 255,120 $ 55,612 $ 287,858 $ 79,083 $ 542,978

LOANS AND ALLOWANCE FOR CREDI_2

LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)	3 Months Ended
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)	Mar. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Schedule of Loans	March 31, December 31, (in thousands) 2023 2022 Commercial construction $ 132,960 $ 117,577 Commercial real estate owner occupied 261,365 244,814 Commercial real estate non-owner occupied 1,149,030 1,146,674 Tax exempt 43,253 42,879 Commercial and industrial 298,384 297,112 Residential real estate 961,701 954,968 Home equity 89,777 90,865 Consumer other 7,535 7,801 Total loans 2,944,005 2,902,690 Allowance for credit losses 26,607 25,860 Net loans $ 2,917,398 $ 2,876,830
Summary of Unamortized Net Costs and Premiums	March 31, December 31, (in thousands) 2023 2022 Net unamortized loan origination costs $ 3,233 $ 3,184 Net unamortized fair value discount on acquired loans (3,339) (3,506) Total $ (106) $ (322)
Schedule of Activity in the Allowance for Credit Losses	At or for the Three Months Ended March 31, 2023 Balance at Beginning of Balance at (in thousands) Period Charge Offs Recoveries Provision End of Period Commercial construction $ 2,579 $ — $ — $ 455 $ 3,034 Commercial real estate owner occupied 2,189 — — 159 2,348 Commercial real estate non-owner occupied 9,341 — — 3 9,344 Tax exempt 93 — — — 93 Commercial and industrial 3,493 (1) 6 117 3,615 Residential real estate 7,274 (4) 8 27 7,305 Home equity 811 — 2 (21) 792 Consumer other 80 (63) 1 58 76 Total $ 25,860 $ (68) $ 17 $ 798 $ 26,607 At or for the Three Months Ended March 31, 2022 Balance at Beginning of Balance at (in thousands) Period Charge Offs Recoveries Provision End of Period Commercial construction $ 2,111 $ — $ — $ (1,110) $ 1,001 Commercial real estate owner occupied 2,751 — 54 (132) 2,673 Commercial real estate non-owner occupied 5,650 — — 1,357 7,007 Tax exempt 86 — — (86) — Commercial and industrial 5,369 — 25 (655) 4,739 Residential real estate 5,862 (15) 91 940 6,878 Home equity 814 (2) 5 10 827 Consumer other 75 (66) 3 53 65 Total $ 22,718 $ (83) $ 178 $ 377 $ 23,190
Schedule of Loans by Risk Rating	The following table presents our loans by year of origination, loan segmentation and risk indicator as of March 31, 2023: (in thousands) 2023 2022 2021 2020 2019 Prior Total Commercial construction Risk rating: Pass $ 375 $ 67,868 $ 36,035 $ 3,541 $ — $ 954 $ 108,773 Special mention — — — 24,187 — — 24,187 Substandard — — — — — — — Total $ 375 $ 67,868 $ 36,035 $ 27,728 $ — $ 954 $ 132,960 Current period gross write-offs — — — — — — — Commercial real estate owner occupied Risk rating: Pass $ 2,829 $ 30,185 $ 23,375 $ 22,719 $ 30,348 $ 146,061 $ 255,517 Special mention — — — 240 659 531 1,430 Substandard — — — — — 4,282 4,282 Doubtful — — — — — 136 136 Total $ 2,829 $ 30,185 $ 23,375 $ 22,959 $ 31,007 $ 151,010 $ 261,365 Current period gross write-offs — — — — — — — Commercial real estate non-owner occupied Risk rating: Pass $ 2,795 $ 372,122 $ 228,413 $ 144,782 $ 89,518 $ 270,794 $ 1,108,424 Special mention — — 21,498 — — 4,135 25,633 Substandard — — — — 115 14,722 14,837 Doubtful — — — — — 136 136 Total $ 2,795 $ 372,122 $ 249,911 $ 144,782 $ 89,633 $ 289,787 $ 1,149,030 Current period gross write-offs — — — — — — — Tax exempt Risk rating: Pass $ 2 $ 10,612 $ 946 $ 247 $ 714 $ 30,732 $ 43,253 Special mention — — — — — — — Substandard — — — — — — — Total $ 2 $ 10,612 $ 946 $ 247 $ 714 $ 30,732 $ 43,253 Current period gross write-offs — — — — — — — Commercial and industrial Risk rating: Pass $ 14,313 $ 74,242 $ 26,272 $ 59,235 $ 29,188 $ 88,912 $ 292,162 Special mention 45 1,403 — 48 956 735 3,187 Substandard — 102 142 120 335 2,336 3,035 Doubtful — — — — — — — Total $ 14,358 $ 75,747 $ 26,414 $ 59,403 $ 30,479 $ 91,983 $ 298,384 Current period gross write-offs — — — — — 1 1 (in thousands) 2023 2022 2021 2020 2019 Prior Total Residential real estate Performing $ 21,385 $ 196,948 $ 176,209 $ 109,432 $ 67,756 $ 385,905 $ 957,635 Nonperforming — — 43 — 48 3,975 4,066 Total $ 21,385 $ 196,948 $ 176,252 $ 109,432 $ 67,804 $ 389,880 $ 961,701 Current period gross write-offs — — — — — 4 4 Home equity Performing $ 3,428 $ 18,315 $ 10,306 $ 7,383 $ 5,953 $ 43,459 $ 88,844 Nonperforming — — — — — 933 933 Total $ 3,428 $ 18,315 $ 10,306 $ 7,383 $ 5,953 $ 44,392 $ 89,777 Current period gross write-offs — — — — — — — Consumer other Performing $ 1,862 $ 2,659 $ 1,150 $ 718 $ 181 $ 961 $ 7,531 Nonperforming — — — 4 — — 4 Total $ 1,862 $ 2,659 $ 1,150 $ 722 $ 181 $ 961 $ 7,535 Current period gross write-offs — 52 8 2 — $ 1 63 Total Loans $ 47,034 $ 774,456 $ 524,389 $ 372,656 $ 225,771 $ 999,699 $ 2,944,005 The following table presents our loans by year of origination, loan segmentation and risk indicator as of December 31, 2022: (in thousands) 2022 2021 2020 2019 2018 Prior Total Commercial construction Risk rating: Pass $ 49,722 $ 38,837 $ 2,865 $ 1,011 $ 964 $ — $ 93,399 Special mention — — 24,178 — — — 24,178 Substandard — — — — — — — Total $ 49,722 $ 38,837 $ 27,043 $ 1,011 $ 964 $ — $ 117,577 Commercial real estate owner occupied Risk rating: Pass $ 22,371 $ 11,290 $ 23,014 $ 31,352 $ 46,398 $ 103,295 $ 237,720 Special mention — — 243 666 173 1,870 2,952 Substandard — — — — 77 3,924 4,001 Doubtful — — — — — 141 141 Total $ 22,371 $ 11,290 $ 23,257 $ 32,018 $ 46,648 $ 109,230 $ 244,814 Commercial real estate non-owner occupied Risk rating: Pass $ 370,856 $ 228,414 $ 145,096 $ 88,111 $ 35,213 $ 238,395 $ 1,106,085 Special mention — 21,390 — 127 911 16,612 39,040 Substandard — — — — — 1,404 1,404 Doubtful — — — — — 145 145 Total $ 370,856 $ 249,804 $ 145,096 $ 88,238 $ 36,124 $ 256,556 $ 1,146,674 Tax exempt Risk rating: Pass $ 8,686 $ 1,020 $ 252 $ 772 $ 13,231 $ 18,918 $ 42,879 Special mention — — — — — — — Substandard — — — — — — — Total $ 8,686 $ 1,020 $ 252 $ 772 $ 13,231 $ 18,918 $ 42,879 Commercial and industrial Risk rating: Pass $ 83,151 $ 26,948 $ 62,835 $ 27,491 $ 9,511 $ 81,316 $ 291,252 Special mention 1,450 — 53 803 201 619 3,126 Substandard — 113 111 65 299 2,106 2,694 Doubtful — — — — — 40 40 Total $ 84,601 $ 27,061 $ 62,999 $ 28,359 $ 10,011 $ 84,081 $ 297,112 (in thousands) 2022 2021 2020 2019 2018 Prior Total Residential real estate Performing $ 195,320 $ 177,480 $ 111,021 $ 69,170 $ 47,797 $ 349,795 $ 950,583 Nonperforming — 45 — 49 641 3,650 4,385 Total $ 195,320 $ 177,525 $ 111,021 $ 69,219 $ 48,438 $ 353,445 $ 954,968 Home equity Performing $ 17,107 $ 10,638 $ 8,139 $ 6,830 $ 6,997 $ 40,191 $ 89,902 Nonperforming — — — — — 963 963 Total $ 17,107 $ 10,638 $ 8,139 $ 6,830 $ 6,997 $ 41,154 $ 90,865 Consumer other Performing $ 4,321 $ 1,341 $ 863 $ 265 $ 64 $ 942 $ 7,796 Nonperforming — — 5 — — — 5 Total $ 4,321 $ 1,341 $ 868 $ 265 $ 64 $ 942 $ 7,801 Total Loans $ 752,984 $ 517,516 $ 378,675 $ 226,712 $ 162,477 $ 864,326 $ 2,902,690
Summary of Past Due Loans	March 31, 2023 (in thousands) 30-59 60-89 90+ Total Past Due Current Total Loans Commercial construction $ — $ — $ — $ — $ 132,960 $ 132,960 Commercial real estate owner occupied 197 227 308 732 260,633 261,365 Commercial real estate non-owner occupied 352 — 133 485 1,148,545 1,149,030 Tax exempt — — — — 43,253 43,253 Commercial and industrial 261 281 134 676 297,708 298,384 Residential real estate 5,325 393 1,728 7,446 954,255 961,701 Home equity 821 — 276 1,097 88,680 89,777 Consumer other 14 9 — 23 7,512 7,535 Total $ 6,970 $ 910 $ 2,579 $ 10,459 $ 2,933,546 $ 2,944,005 December 31, 2022 (in thousands) 30-59 60-89 90+ Total Past Due Current Total Loans Commercial construction $ — $ — $ — $ — $ 117,577 $ 117,577 Commercial real estate owner occupied 385 — — 385 244,429 244,814 Commercial real estate non-owner occupied 45 145 139 329 1,146,345 1,146,674 Tax exempt — — — — 42,879 42,879 Commercial and industrial 169 — 9 178 296,934 297,112 Residential real estate 803 348 2,029 3,180 951,788 954,968 Home equity 216 160 246 622 90,243 90,865 Consumer other 41 8 — 49 7,752 7,801 Total $ 1,659 $ 661 $ 2,423 $ 4,743 $ 2,897,947 $ 2,902,690
Summary of Non-Accrual Loans	March 31, 2023 Nonaccrual With No 90+ Days Past (in thousands) Nonaccrual Related Allowance Due and Accruing Commercial construction $ — $ — $ — Commercial real estate owner occupied 432 362 — Commercial real estate non-owner occupied 529 396 — Tax exempt — — — Commercial and industrial 1,832 138 — Residential real estate 4,066 1,181 93 Home equity 933 51 45 Consumer other 4 — — Total $ 7,796 $ 2,128 $ 138 December 31, 2022 Nonaccrual With No 90+ Days Past (in thousands) Nonaccrual Related Allowance Due and Accruing Commercial construction $ — $ — $ — Commercial real estate owner occupied 439 360 — Commercial real estate non-owner occupied 550 411 — Tax exempt — — — Commercial and industrial 207 145 — Residential real estate 4,385 1,361 202 Home equity 963 57 14 Consumer other 5 — — Total $ 6,549 $ 2,334 $ 216
Schedule of amortized cost basis of collateral-dependent loans	March 31, 2023 December 31, 2022 (in thousands) Real Estate Other Real Estate Other Commercial construction $ — $ — $ — $ — Commercial real estate owner occupied 432 — 439 — Commercial real estate non-owner occupied 529 — 550 — Tax exempt — — — — Commercial and industrial 222 1,610 91 116 Residential real estate 4,066 — 4,385 — Home equity 933 — 963 — Consumer other 4 — 5 — Total $ 6,186 $ 1,610 $ 6,433 $ 116
Unfunded Loan Commitment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Schedule of Activity in the Allowance for Credit Losses	(in thousands) Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Beginning Balance $ 3,910 $ 2,152 Provision for credit losses (175) 30 Ending Balance $ 3,735 $ 2,182

BORROWED FUNDS (Tables)

BORROWED FUNDS (Tables)	3 Months Ended
BORROWED FUNDS (Tables)	Mar. 31, 2023
BORROWED FUNDS
Schedule of Borrowed Funds	March 31, 2023 December 31, 2022 Weighted Weighted (dollars in thousands) Carrying Value Average Rate Carrying Value Average Rate Short-term borrowings Advances from the FHLB $ 322,925 4.96 % $ 318,000 3.84 % Other borrowings 12,734 0.13 13,369 0.13 Total short-term borrowings 335,659 2.86 331,369 2.20 Long-term borrowings Advances from the FHLB 2,585 0.48 2,588 0.48 Subordinated borrowings 60,330 6.01 60,289 4.95 Total long-term borrowings 62,915 5.78 62,877 4.76 Total $ 398,574 3.15 % $ 394,246 2.45 %
Summary of Maturities of FHLB Advances	Weighted Average (in thousands, except rates) Amount Rate 2023 $ 322,925 4.96 % 2024 2,300 — 2025 — — 2026 — — 2027 — — Thereafter 285 4.32 Total FHLB advances $ 325,510 4.93 %
Schedule of Repurchase Agreements	(in thousands) March 31, 2023 December 31, 2022 Customer Repurchase Agreements US Government-sponsored enterprises $ 12,734 $ 13,369 Total $ 12,734 $ 13,369

DEPOSITS (Tables)

DEPOSITS (Tables)	3 Months Ended
DEPOSITS (Tables)	Mar. 31, 2023
DEPOSITS.
Summary of Time Deposits	(in thousands) March 31, 2023 December 31, 2022 Time less than $100,000 $ 215,300 $ 157,263 Time $100,000 through $250,000 126,907 118,655 Time $250,000 or more 62,039 47,521 Total $ 404,246 $ 323,439
Time Deposit Maturities	(in thousands) March 31, 2023 December 31, 2022 Within 1 year $ 342,053 $ 262,338 Over 1 year to 2 years 41,116 37,937 Over 2 years to 3 years 11,416 12,936 Over 3 years to 4 years 4,880 5,410 Over 4 years to 5 years 4,381 4,319 Over 5 years 400 499 Total $ 404,246 $ 323,439

CAPITAL RATIOS AND SHAREHOLDE_2

CAPITAL RATIOS AND SHAREHOLDERS' EQUITY (Tables)	3 Months Ended
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY (Tables)	Mar. 31, 2023
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY
Schedule of Actual and Required Capital Ratios	March 31, 2023 Minimum Regulatory Actual Capital Requirements (in thousands, except ratios) Amount Ratio Amount Ratio Company (consolidated) Total capital to risk-weighted assets $ 427,290 13.65 % $ 250,436 8.00 % Common equity tier 1 capital to risk-weighted assets 336,331 10.74 140,871 4.50 Tier 1 capital to risk-weighted assets 347,133 11.40 182,662 6.00 Tier 1 capital to average assets (leverage ratio) 347,133 9.33 148,896 4.00 Bank Total capital to risk-weighted assets $ 419,780 13.50 % $ 248,747 8.00 % Common equity tier 1 capital to risk-weighted assets 389,441 11.24 155,897 4.50 Tier 1 capital to risk-weighted assets 389,441 11.24 207,863 6.00 Tier 1 capital to average assets (leverage ratio) 389,441 10.57 147,326 4.00 December 31, 2022 Minimum Regulatory Actual Capital Requirements (in thousands, except ratios) Amount Ratio Amount Ratio Company (consolidated) Total capital to risk-weighted assets $ 416,900 13.50 % $ 247,041 8.00 % Common equity tier 1 capital to risk-weighted assets 326,513 10.57 138,960 4.50 Tier 1 capital to risk-weighted assets 347,133 11.24 185,281 6.00 Tier 1 capital to average assets (leverage ratio) 347,133 9.21 150,772 4.00 Bank Total capital to risk-weighted assets $ 410,053 13.29 % $ 246,812 8.00 % Common equity tier 1 capital to risk-weighted assets 380,286 12.33 138,832 4.50 Tier 1 capital to risk-weighted assets 380,286 12.33 185,110 6.00 Tier 1 capital to average assets (leverage ratio) 380,286 10.10 150,655 4.00
Schedule of Components of Accumulated Other Comprehensive Income	(in thousands) March 31, 2023 December 31, 2022 Accumulated other comprehensive income, before tax: Net unrealized loss on AFS securities $ (65,826) $ (71,832) Net unrealized loss on hedging derivatives (1,566) (2,333) Net unrealized loss on post-retirement plans (1,675) (1,691) Income taxes related to items of accumulated other comprehensive income: Net unrealized loss on AFS securities 15,180 16,586 Net unrealized loss on hedging derivatives 361 539 Net unrealized loss on post-retirement plans 375 391 Accumulated other comprehensive loss $ (53,151) $ (58,340)
Schedule of Components of Other Comprehensive Income (Loss)	(in thousands) Before Tax Tax Effect Net of Tax Three Months Ended March 31, 2023 Net unrealized gain on AFS securities: Net unrealized gain arising during the period $ 6,040 $ (1,414) $ 4,626 Less: reclassification adjustment for gains (losses) realized in net income 34 (8) 26 Net unrealized gain on AFS securities 6,006 (1,406) 4,600 Net unrealized loss on hedging derivatives: Net unrealized gain arising during the period 767 (178) 589 Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized gain on cash flow hedging derivatives 767 (178) 589 Other comprehensive income (loss) $ 6,773 $ (1,584) $ 5,189 Three Months Ended March 31, 2022 Net unrealized loss on AFS securities: Net unrealized loss arising during the period $ (28,835) $ 6,632 $ (22,203) Less: reclassification adjustment for gains (losses) realized in net income 9 (2) 7 Net unrealized gain on AFS securities (28,844) 6,634 (22,210) Net unrealized loss on derivative hedgess: Net unrealized loss arising during the period (1,881) 433 (1,448) Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized loss on cash flow derivative hedges (1,881) 433 (1,448) Other comprehensive (loss) income $ (30,725) $ 7,067 $ (23,658)
Schedule of Changes in Components of Accumulated Other Comprehensive Income (Loss)	Net unrealized Net gain (loss) on Net unrealized gain (loss) effective cash loss on AFS flow hedging on pension (in thousands) Securities derivatives plans Total Three Months Ended March 31, 2023 Balance at beginning of period $ (55,246) $ (1,794) $ (1,300) $ (58,340) Other comprehensive loss before reclassifications 4,626 589 — 5,215 Less: amounts reclassified from accumulated other comprehensive income 26 — — 26 Total other comprehensive income 4,600 589 — 5,189 Balance at end of period $ (50,646) $ (1,205) $ (1,300) $ (53,151) Three Months Ended March 31, 2022 Balance at beginning of period $ 1,985 $ 870 $ (552) $ 2,303 Other comprehensive loss before reclassifications (22,203) (1,448) — (23,651) Less: amounts reclassified from accumulated other comprehensive income 7 — — 7 Total other comprehensive loss (22,210) (1,448) — (23,658) Balance at end of period $ (20,225) $ (578) $ (552) $ (21,355)
Reclassification out of Accumulated Other Comprehensive Income (Loss)	Affected Line Item where (in thousands) 2023 2022 Net Income is Presented Net realized gains on AFS securities: Before tax (1) $ 34 $ 9 Non-interest income Tax effect (8) (2) Tax expense Total reclassifications for the period $ 26 $ 7 Affected Line Item where (in thousands) 2023 2022 Net Income is Presented Net realized loss on hedging derivatives: Before tax $ — $ — Non-interest income Tax effect — — Tax expense Total reclassifications for the period $ — $ — (1) Net realized gains before tax include $34 thousand realized gains for the three months ended March 31, 2023 and no gross realized losses. Net realized gains before tax include $9 thousand realized gains for the three months ended March 31, 2022 and no gross realized losses.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
EARNINGS PER SHARE (Tables)	Mar. 31, 2023
EARNINGS PER SHARE
Schedule of Earnings Per Share	Three Months Ended March 31, (in thousands, except per share and share data) 2023 2022 Net income $ 13,012 $ 9,112 Average number of basic common shares outstanding 15,109,847 15,010,834 Plus: dilutive effect of stock options and awards outstanding 80,242 90,951 Average number of diluted common shares outstanding (1) 15,190,089 15,101,785 Earnings per share: Basic $ 0.86 $ 0.61 Diluted 0.86 0.60 (1) Average diluted shares outstanding are computed using the treasury stock method.

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)	3 Months Ended
	Mar. 31, 2023
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
Schedule of Information About Derivative Assets and Liabilities	March 31, 2023 Weighted Notional Average Fair Value Location Fair Amount Maturity Asset (Liability) Value Asset (in thousands) (in years) (in thousands) (Liability) Cash flow hedges: Interest rate swap on wholesale fundings $ 75,000 1.8 $ 4,184 Other assets Interest rate swap on variable rate loans 50,000 3.0 (4,170) Other liabilities Total cash flow hedges 125,000 14 Fair value hedges: Interest rate swap on securities 37,190 6.3 3,952 Other assets Total fair value hedges 37,190 3,952 Economic hedges: Customer Loan Swaps-MNA Counterparty 192,269 5.5 (16,375) Other liabilities Customer Loan Swaps-RPA Counterparty 112,836 5.7 (23) Other liabilities Customer Loan Swaps-Customer 305,105 5.6 16,398 Other assets Total economic hedges 610,210 — Non-hedging derivatives: Interest rate lock commitments 552 0.2 8 Other assets Total non-hedging derivatives 552 8 Total $ 772,952 $ 3,974 December 31, 2022 Weighted Notional Average Fair Value Location Fair Amount Maturity Asset (Liability) Value Asset (in thousands) (in years) (in thousands) (Liability) Cash flow hedges: Interest rate swap on wholesale fundings $ 75,000 2.0 $ 4,978 Other assets Interest rate swap on variable rate loans 50,000 3.2 (4,941) Other liabilities Total cash flow hedges 125,000 37 Fair value hedges: Interest rate swap on securities 37,190 6.6 4,774 Other assets Total fair value hedges 37,190 4,774 Economic hedges: Forward sale commitments — — — Other assets Customer Loan Swaps-MNA Counterparty 191,987 5.8 (20,287) Other liabilities Customer Loan Swaps-RPA Counterparty 113,928 6.0 — Other liabilities Customer Loan Swaps-Customer 305,914 5.9 20,287 Other assets Total economic hedges 611,829 — Non-hedging derivatives: Interest rate lock commitments — — — Other assets Total non-hedging derivatives — — Total $ 774,019 $ 4,811
Schedule of Amounts Recorded On The Balance Sheet	Cumulative Amount of Fair Location of Hedged Item on Carrying Amount of Hedged Value Hedging Adjustment in Balance Sheet Assets Carrying Amount March 31, 2023 Interest rate swap on securities Securities Available for Sale $ 31,658 $ (5,532) December 31, 2022 Interest rate swap on securities Securities Available for Sale $ 41,964 $ 4,774
Schedule of Derivative Instruments Gain (Loss)	Three Months Ended March 31, 2023 Amount of Amount of Gain (Loss) Gain (Loss) Recognized in Reclassified Location of Amount of Other Location of Gain (Loss) from Other Gain (Loss) Gain (Loss) Comprehensive Reclassified from Other Comprehensive Recognized in Recognized (in thousands) Income Comprehensive Income Income Income in Income Cash flow hedges: Interest rate swap on wholesale funding $ (610) Interest expense $ — Interest expense $ 664 Interest rate swap on variable rate loans 592 Interest income — Interest income (466) Total cash flow hedges (18) — 198 Fair value hedges: Interest rate swap on securities 607 Interest income — Interest income 286 Total fair value hedges 607 — 286 Economic hedges: Forward commitments — Other income — Mortgage banking income — Total economic hedges — — — Non-hedging derivatives: Interest rate lock commitments — Other expense — Mortgage banking income 8 Total non-hedging derivatives — — 8 Total $ 589 $ — $ 492 Three Months Ended March 31, 2022 Amount of Amount of Gain (Loss) Gain (Loss) Recognized in Reclassified Location of Amount of Other Location of Gain (Loss) from Other Gain (Loss) Gain (Loss) Comprehensive Reclassified from Other Comprehensive Recognized in Recognized (in thousands) Income Comprehensive Income Income Income in Income Cash flow hedges: Interest rate swap on wholesale funding $ 2,191 Interest expense $ — Interest expense $ (113) Interest rate swap on variable rate loans (1,798) Interest income — Interest income 16 Total cash flow hedges 393 — (97) Fair value hedges: Interest rate swap on securities (1,841) Interest income — Interest income (135) Total economic hedges (1,841) — (135) Economic hedges: Forward commitments — Other income — Non-interest income 186 Total economic hedges — — 186 Non-hedging derivatives: Interest rate lock commitments — Other income — Non-interest income (288) Total non-hedging derivatives — — (288) Total $ (1,448) $ — $ (334)
Schedule of Gain Loss in Statement of Income	Three Months Ended March 31, 2023 Interest and Dividend Income Interest Expense (in thousands) Loans Securities and other Deposits Borrowings Non-interest Income Income and expense line items presented in the consolidated statements of income $ 34,560 $ 5,791 $ 5,265 $ 4,180 $ 9,184 The effects of cash flow and fair value hedging: Gain (loss) on cash flow hedges: Interest rate swap on wholesale funding — — — 664 — Interest rate swap on variable rate loans (466) — — — — Gain (loss) on fair value hedges: Interest rate swap on securities — 286 — — — Three Months Ended March 31, 2022 Interest and Dividend Income Interest Expense (in thousands) Loans Securities and other Deposits Borrowings Non-interest Income Income and expense line items presented in the consolidated statements of income $ 22,671 $ 3,826 $ 1,189 $ 1,010 $ 9,309 The effects of cash flow and fair value hedging: Gain (loss) on cash flow hedges: Interest rate swap on wholesale funding — — — (113) — Interest rate swap on variable rate loans 16 — — — — Gain (loss) on fair value hedges: Interest rate swap on securities — (135) — — —
Schedule of derivatives no designated as hedging instruments on the consolidated statements of income	Location of Gain (Loss) Recognized Three Months Ended March 31, (In thousands) in Non-interest Income 2023 2022 Derivatives not designated as hedging instruments Non-hedging derivatives: Interest rate lock commitments Mortgage banking income $ 8 $ (288)
Schedule of Offsetting Liabilities	Gross Amounts Offset in the Consolidated Balance Sheet Derivative Cash Collateral (in thousands) Liabilities Derivative Assets Pledged Net Amount As of March 31, 2023 Customer Loan Derivatives: MNA counterparty $ (16,375) $ 16,375 $ — $ — RPA counterparty (23) 23 — — Total $ (16,398) $ 16,398 $ — $ — Gross Amounts Offset in the Consolidated Balance Sheet Derivative Cash Collateral (in thousands) Liabilities Derivative Assets Pledged Net Amount As of December 31, 2022 Customer Loan Derivatives: MNA counterparty $ (20,287) $ 20,287 $ — $ — RPA counterparty — — — — Total $ (20,287) $ 20,287 $ — $ —

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
FAIR VALUE MEASUREMENTS (Tables)	Mar. 31, 2023
FAIR VALUE MEASUREMENTS
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	March 31, 2023 Level 1 Level 2 Level 3 Total (in thousands) Inputs Inputs Inputs Fair Value Available for sale securities: Mortgage-backed securities: US Government-sponsored enterprises $ — $ 214,300 $ — $ 214,300 US Government agency — 80,938 — 80,938 Private label — 58,500 — 58,500 Obligations of states and political subdivisions thereof — 111,165 — 111,165 Corporate bonds — 92,137 — 92,137 Loans held for sale — 463 — 463 Derivative assets — 24,534 8 24,542 Derivative liabilities — (20,568) — (20,568) December 31, 2022 Level 1 Level 2 Level 3 Total (in thousands) Inputs Inputs Inputs Fair Value Available for sale securities: Mortgage-backed securities: US Government-sponsored enterprises $ — $ 215,027 $ — $ 215,027 US Government agency — 82,266 — 82,266 Private label — 60,154 — 60,154 Obligations of states and political subdivisions thereof — 107,737 — 107,737 Corporate bonds — 94,332 — 94,332 Loans held for sale — — — — Derivative assets — 30,039 — 30,039 Derivative liabilities — (25,228) — (25,228)
Schedule of Changes in Level 3 Assets Measured on a Recurring Basis	Assets (Liabilities) Interest Rate Lock Forward (in thousands) Commitments Commitments Three Months Ended March 31, 2023 Balance at beginning of period $ — $ — Realized loss recognized in non-interest income 8 — Balance at end of period $ 8 $ — Three Months Ended March 31, 2022 Balance at beginning of period $ 283 $ 15 Realized gain recognized in non-interest income (288) 186 Balance at end of period $ (5) $ 201
Schedule of Changes in Level 3 Liabilities Measured on a Recurring Basis	Assets (Liabilities) Interest Rate Lock Forward (in thousands) Commitments Commitments Three Months Ended March 31, 2023 Balance at beginning of period $ — $ — Realized loss recognized in non-interest income 8 — Balance at end of period $ 8 $ — Three Months Ended March 31, 2022 Balance at beginning of period $ 283 $ 15 Realized gain recognized in non-interest income (288) 186 Balance at end of period $ (5) $ 201
Schedule of Quantitative Information, Valuation, Recurring	Fair Value (in thousands, March 31, Valuation Unobservable Unobservable except ratios) 2023 Techniques Inputs Input Value Assets (Liabilities) Interest Rate Lock Commitment $ 8 Pull-through Rate Analysis Closing Ratio 76 % Pricing Model Origination Costs, per loan $ 1.7 Discount Cash Flows Mortgage Servicing Asset 1.0 % Total $ 8
Summary of Applicable Non-Recurring Fair Value Measurements	March 31, 2023 December 31, 2022 March 31, 2023 Fair Value Measurement Date as of March 31, 2023 Level 3 Level 3 Total Level 3 (in thousands) Inputs Inputs Gains (Losses) Inputs Assets Individually evaluated loans $ 15,513 $ 16,477 $ (964) March 2023 Capitalized servicing rights 6,570 6,845 (275) March 2023 Premises held for sale 252 252 — March 2023 Total $ 22,335 $ 23,574 $ (1,239)
Schedule of Quantitative Information, Valuation, Non-recurring	(in thousands, except ratios) Fair Value March 31, 2023 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Individually evaluated loans $ 11,945 Fair value of collateral-appraised value Loss severity 10% to 70% Appraised value $80 to $2,941 Individually evaluated loans 3,568 Discount cash flow Discount rate 3.38% to 6.38% Cash flows $3 to $707 Capitalized servicing rights 6,570 Discounted cash flow Constant prepayment rate 7.19% Discount rate 9.54% Premises held for sale 252 Fair value of asset less selling costs Appraised value $267 Selling Costs 6% Total $ 22,335 (a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individual properties. (in thousands, except ratios) Fair Value December 31, 2022 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Individually evaluated loans $ 13,587 Fair value of collateral-appraised value Loss severity 1% to 40% Appraised value $80 to $3,859 Individually evaluated loans 2,890 Discount cash flow Discount rate 3.63% to 6.38% Cash flows $100 to $539 Capitalized servicing rights 6,845 Discounted cash flow Constant prepayment rate 7.29% Discount rate 9.54% Premises held for sale 252 Fair value of asset less selling costs Appraised value $267 Selling Costs 6% Total $ 23,574 (a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individual properties.
Summary of Estimated Fair Values, and Related Carrying Amounts, of Financial Instruments	March 31, 2023 Carrying Fair (in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 82,702 $ 82,702 $ 82,702 $ — $ — Securities available for sale 557,040 557,040 — 557,040 — FHLB stock 15,718 15,718 — 15,718 — Loans held for sale 463 463 — 463 — Net loans 2,917,398 2,789,397 — — 2,789,397 Accrued interest receivable 4,747 4,747 — 4,747 — Cash surrender value of bank-owned life insurance policies 78,436 8,436 — 8,436 — Derivative assets 24,542 24,542 — 24,534 8 Financial Liabilities Non-maturity deposits $ 2,649,568 $ 2,306,918 $ — $ 2,306,918 $ — Time deposits 404,246 395,594 — 395,594 — Securities sold under agreements to repurchase 12,733 12,733 — 12,733 — FHLB advances 325,511 325,334 — 325,334 — Subordinated borrowings 60,330 66,981 — 66,981 — Derivative liabilities 20,568 20,568 — 20,568 — December 31, 2022 Carrying Fair (in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 92,295 $ 92,295 $ 92,295 $ — $ — Securities available for sale 559,516 559,516 — 559,516 — FHLB stock 14,893 14,893 — 14,893 — Loans held for sale — — — — — Net loans 2,902,690 2,774,863 — — 2,774,863 Accrued interest receivable 4,257 4,257 — 4,257 — Cash surrender value of bank-owned life insurance policies 81,197 81,197 — 81,197 — Derivative assets 30,039 30,039 — 30,039 — Financial Liabilities Non-maturity deposits $ 2,719,992 $ 2,309,555 $ — $ 2,309,555 $ — Time deposits 323,439 315,180 — 315,180 — Securities sold under agreements to repurchase 13,369 13,369 — 13,369 — FHLB advances 320,588 320,244 — 320,244 — Subordinated borrowings 60,289 66,846 — 66,846 — Derivative liabilities 25,228 25,228 — 25,228 —

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	3 Months Ended
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	Mar. 31, 2023
REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of Revenue	Three Months Ended March 31, (in thousands) 2023 2022 Non-interest income within the scope of ASC 606: Trust management fees $ 3,091 $ 3,403 Financial services fees 464 351 Interchange fees 2,010 1,973 Customer deposit fees 1,429 1,372 Other customer service fees 238 271 Total non-interest income within the scope of ASC 606 7,232 7,370 Total non-interest income not within the scope of ASC 606 1,952 1,939 Total non-interest income $ 9,184 $ 9,309 Three Months Ended March 31, (in thousands) 2023 2022 Timing of Revenue Recognition Products and services transferred at a point in time $ 3,950 $ 3,757 Products and services transferred over time 3,282 3,613 Total $ 7,232 $ 7,370
Contract Balances from Contracts with Customers	(in thousands) March 31, 2023 December 31, 2022 Balances from contracts with customers only: Other Assets $ 1,121 $ 1,211 Other Liabilities 2,285 2,345

SECURITIES AVAILABLE FOR SALE -

SECURITIES AVAILABLE FOR SALE - Summary of Securities Available for Sale (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Investment Holdings [Line Items]
Amortized Cost	$ 622,866	$ 631,348
Gross Unrealized Gains	5,678	7,251
Gross Unrealized Losses	(71,504)	(79,083)
Fair Value	557,040	559,516
US Government-sponsored enterprises
Investment Holdings [Line Items]
Amortized Cost	245,482	249,838
Gross Unrealized Gains	41	14
Gross Unrealized Losses	(31,223)	(34,825)
Fair Value	214,300	215,027
US Government agency
Investment Holdings [Line Items]
Amortized Cost	91,092	93,010
Gross Unrealized Gains	43	21
Gross Unrealized Losses	(10,197)	(10,765)
Fair Value	80,938	82,266
Private label
Investment Holdings [Line Items]
Amortized Cost	62,101	64,056
Gross Unrealized Gains	34	34
Gross Unrealized Losses	(3,635)	(3,936)
Fair Value	58,500	60,154
Obligations of states and political subdivisions thereof
Investment Holdings [Line Items]
Amortized Cost	122,686	121,939
Gross Unrealized Gains	5,543	7,149
Gross Unrealized Losses	(17,064)	(21,351)
Fair Value	111,165	107,737
Corporate bonds
Investment Holdings [Line Items]
Amortized Cost	101,505	102,505
Gross Unrealized Gains	17	33
Gross Unrealized Losses	(9,385)	(8,206)
Fair Value	$ 92,137	$ 94,332

SECURITIES AVAILABLE FOR SALE_2

SECURITIES AVAILABLE FOR SALE - Maturity of Available for Sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Amortized Cost
Within 1 year	$ 195
Over 1 year to 5 years	37,278
Over 5 years to 10 years	57,610
Over 10 years	129,108
Total bonds and obligations	224,191
Mortgage-backed securities	398,675
Amortized Cost	622,866	$ 631,348
Fair Value
Within 1 year	196
Over 1 year to 5 years	34,483
Over 5 years to 10 years	57,009
Over 10 years	111,614
Total bonds and obligations	203,302
Mortgage-backed securities	353,738
Total securities available for sale	$ 557,040	$ 559,516

SECURITIES AVAILABLE FOR SALE_3

SECURITIES AVAILABLE FOR SALE - Gains and Losses from AFS Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
SECURITIES AVAILABLE FOR SALE
Gross gains on sales of available for sale securities	$ 34	$ 9
Net gains on sale of available for sale securities	$ 34	$ 9

SECURITIES AVAILABLE FOR SALE_4

SECURITIES AVAILABLE FOR SALE - Summary of Securities with Unrealized Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Gross Unrealized Losses
Less Than Twelve Months	$ 6,224	$ 23,471
Over Twelve Months	65,280	55,612
Total	71,504	79,083
Fair Value
Less Than Twelve Months	110,500	255,120
Over Twelve Months	426,675	287,858
Total	537,175	542,978
US Government-sponsored enterprises
Gross Unrealized Losses
Less Than Twelve Months	1,324	7,005
Over Twelve Months	29,899	27,820
Total	31,223	34,825
Fair Value
Less Than Twelve Months	35,076	82,483
Over Twelve Months	174,319	127,745
Total	209,395	210,228
US Government agency
Gross Unrealized Losses
Less Than Twelve Months	834	2,902
Over Twelve Months	9,363	7,863
Total	10,197	10,765
Fair Value
Less Than Twelve Months	22,846	42,865
Over Twelve Months	53,711	34,988
Total	76,557	77,853
Private label
Gross Unrealized Losses
Less Than Twelve Months	5	841
Over Twelve Months	3,630	3,095
Total	3,635	3,936
Fair Value
Less Than Twelve Months	94	15,694
Over Twelve Months	58,372	44,396
Total	58,466	60,090
Obligations of states and political subdivisions thereof
Gross Unrealized Losses
Less Than Twelve Months	184	7,990
Over Twelve Months	16,880	13,361
Total	17,064	21,351
Fair Value
Less Than Twelve Months	9,439	48,799
Over Twelve Months	94,281	55,702
Total	103,720	104,501
Corporate bonds
Gross Unrealized Losses
Less Than Twelve Months	3,877	4,733
Over Twelve Months	5,508	3,473
Total	9,385	8,206
Fair Value
Less Than Twelve Months	43,045	65,279
Over Twelve Months	45,992	25,027
Total	$ 89,037	$ 90,306

SECURITIES AVAILABLE FOR SALE_5

SECURITIES AVAILABLE FOR SALE - Basis for Impairment Conclusion (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) security	Dec. 31, 2022 USD ($)
Accounting Standards Update 2016-13
Investment Holdings [Line Items]
Allowance on AFS debt securities \| $	$ 0	$ 0
US Government-sponsored enterprises
Investment Holdings [Line Items]
Available-for-sale, securities in unrealized loss positions (security)	466
Available for sale securities portfolio, number of securities (security)	516
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses (percentage)	12.98%
US Government agency
Investment Holdings [Line Items]
Available-for-sale, securities in unrealized loss positions (security)	139
Available for sale securities portfolio, number of securities (security)	160
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses (percentage)	11.75%
Private label
Investment Holdings [Line Items]
Available-for-sale, securities in unrealized loss positions (security)	26
Available for sale securities portfolio, number of securities (security)	28
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses (percentage)	5.85%
Obligations of states and political subdivisions thereof
Investment Holdings [Line Items]
Available-for-sale, securities in unrealized loss positions (security)	53
Available for sale securities portfolio, number of securities (security)	76
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses (percentage)	14.81%
Corporate bonds
Investment Holdings [Line Items]
Available-for-sale, securities in unrealized loss positions (security)	30
Available for sale securities portfolio, number of securities (security)	33
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses (percentage)	9.53%

LOANS AND ALLOWANCE FOR CREDI_3

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Total Loans (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 2,944,005	$ 2,902,690
Allowance for credit losses	26,607	25,860	$ 23,190	$ 22,718
Net loans	2,917,398	2,876,830
Accrued interest receivable for loans	11,200	10,700
Tax exempt
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	43,253	42,879
Allowance for credit losses	93	93		86
Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	89,777	90,865
Allowance for credit losses	792	811	827	814
Total commercial loans \| Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	132,960	117,577
Allowance for credit losses	3,034	2,579	1,001	2,111
Total commercial real estate \| Commercial real estate owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	261,365	244,814
Allowance for credit losses	2,348	2,189	2,673	2,751
Total commercial real estate \| Commercial real estate non-owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,149,030	1,146,674
Allowance for credit losses	9,344	9,341	7,007	5,650
Total commercial and industrial \| Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	298,384	297,112
Allowance for credit losses	3,615	3,493	4,739	5,369
Total residential real estate \| Residential mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	961,701	954,968
Allowance for credit losses	7,305	7,274	6,878	5,862
Total consumer \| Other consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	7,535	7,801
Allowance for credit losses	$ 76	$ 80	$ 65	$ 75

LOANS AND ALLOWANCE FOR CREDI_4

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Unamortized Net Costs and Premiums (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
LOANS AND ALLOWANCE FOR CREDIT LOSSES
Net unamortized loan origination costs	$ 3,233	$ 3,184
Net unamortized fair value discount on acquired loans	(3,339)	(3,506)
Total	$ (106)	$ (322)

LOANS AND ALLOWANCE FOR CREDI_5

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Allowance Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Activity in the allowance for loan losses
Balance at beginning of period	$ 25,860	$ 22,718
Charge Offs	(68)	(83)
Recoveries	17	178
Provision	798	377
Balance at end of period	26,607	23,190
Construction and land development \| Total commercial loans
Activity in the allowance for loan losses
Balance at beginning of period	2,579	2,111
Provision	455	(1,110)
Balance at end of period	3,034	1,001
Commercial real estate owner occupied \| Total commercial real estate
Activity in the allowance for loan losses
Balance at beginning of period	2,189	2,751
Recoveries		54
Provision	159	(132)
Balance at end of period	2,348	2,673
Commercial real estate non-owner occupied \| Total commercial real estate
Activity in the allowance for loan losses
Balance at beginning of period	9,341	5,650
Provision	3	1,357
Balance at end of period	9,344	7,007
Tax exempt
Activity in the allowance for loan losses
Balance at beginning of period	93	86
Provision		(86)
Balance at end of period	93
Commercial and industrial \| Total commercial and industrial
Activity in the allowance for loan losses
Balance at beginning of period	3,493	5,369
Charge Offs	(1)
Recoveries	6	25
Provision	117	(655)
Balance at end of period	3,615	4,739
Residential mortgages \| Total residential real estate
Activity in the allowance for loan losses
Balance at beginning of period	7,274	5,862
Charge Offs	(4)	(15)
Recoveries	8	91
Provision	27	940
Balance at end of period	7,305	6,878
Home equity
Activity in the allowance for loan losses
Balance at beginning of period	811	814
Charge Offs		(2)
Recoveries	2	5
Provision	(21)	10
Balance at end of period	792	827
Other consumer \| Total consumer
Activity in the allowance for loan losses
Balance at beginning of period	80	75
Charge Offs	(63)	(66)
Recoveries	1	3
Provision	58	53
Balance at end of period	76	65
Unfunded Loan Commitment
Activity in the allowance for loan losses
Balance at beginning of period	3,910	2,152
Provision	(175)	30
Balance at end of period	$ 3,735	$ 2,182

LOANS AND ALLOWANCE FOR CREDI_6

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loans by Year of Origination, Loan Segmentation and Risk Indicator (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Credit quality information
2023	$ 47,034	$ 752,984
2022	774,456	517,516
2021	524,389	378,675
2020	372,656	226,712
2019	225,771	162,477
Prior	999,699	864,326
Total	2,944,005	2,902,690
Construction and land development \| Total commercial loans
Credit quality information
2023	375	49,722
2022	67,868	38,837
2021	36,035	27,043
2020	27,728	1,011
2019		964
Prior	954
Total	132,960	117,577
Construction and land development \| Pass \| Total commercial loans
Credit quality information
2023	375	49,722
2022	67,868	38,837
2021	36,035	2,865
2020	3,541	1,011
2019		964
Prior	954
Total	108,773	93,399
Construction and land development \| Special mention \| Total commercial loans
Credit quality information
2021		24,178
2020	24,187
Total	24,187	24,178
Commercial real estate owner occupied \| Total commercial real estate
Credit quality information
2023	2,829	22,371
2022	30,185	11,290
2021	23,375	23,257
2020	22,959	32,018
2019	31,007	46,648
Prior	151,010	109,230
Total	261,365	244,814
Commercial real estate owner occupied \| Pass \| Total commercial real estate
Credit quality information
2023	2,829	22,371
2022	30,185	11,290
2021	23,375	23,014
2020	22,719	31,352
2019	30,348	46,398
Prior	146,061	103,295
Total	255,517	237,720
Commercial real estate owner occupied \| Special mention \| Total commercial real estate
Credit quality information
2021		243
2020	240	666
2019	659	173
Prior	531	1,870
Total	1,430	2,952
Commercial real estate owner occupied \| Substandard \| Total commercial real estate
Credit quality information
2019		77
Prior	4,282	3,924
Total	4,282	4,001
Commercial real estate owner occupied \| Doubtful \| Total commercial real estate
Credit quality information
Prior	136	141
Total	136	141
Commercial real estate non-owner occupied \| Total commercial real estate
Credit quality information
2023	2,795	370,856
2022	372,122	249,804
2021	249,911	145,096
2020	144,782	88,238
2019	89,633	36,124
Prior	289,787	256,556
Total	1,149,030	1,146,674
Commercial real estate non-owner occupied \| Pass \| Total commercial real estate
Credit quality information
2023	2,795	370,856
2022	372,122	228,414
2021	228,413	145,096
2020	144,782	88,111
2019	89,518	35,213
Prior	270,794	238,395
Total	1,108,424	1,106,085
Commercial real estate non-owner occupied \| Special mention \| Total commercial real estate
Credit quality information
2022		21,390
2021	21,498
2020		127
2019		911
Prior	4,135	16,612
Total	25,633	39,040
Commercial real estate non-owner occupied \| Substandard \| Total commercial real estate
Credit quality information
2019	115
Prior	14,722	1,404
Total	14,837	1,404
Commercial real estate non-owner occupied \| Doubtful \| Total commercial real estate
Credit quality information
Prior	136	145
Total	136	145
Tax exempt
Credit quality information
2023	2	8,686
2022	10,612	1,020
2021	946	252
2020	247	772
2019	714	13,231
Prior	30,732	18,918
Total	43,253	42,879
Tax exempt \| Pass
Credit quality information
2023	2	8,686
2022	10,612	1,020
2021	946	252
2020	247	772
2019	714	13,231
Prior	30,732	18,918
Total	43,253	42,879
Commercial and industrial \| Total commercial and industrial
Credit quality information
2023	14,358	84,601
2022	75,747	27,061
2021	26,414	62,999
2020	59,403	28,359
2019	30,479	10,011
Prior	91,983	84,081
Total	298,384	297,112
Current period gross write-offs
Prior	1
Total	1
Commercial and industrial \| Pass \| Total commercial and industrial
Credit quality information
2023	14,313	83,151
2022	74,242	26,948
2021	26,272	62,835
2020	59,235	27,491
2019	29,188	9,511
Prior	88,912	81,316
Total	292,162	291,252
Commercial and industrial \| Special mention \| Total commercial and industrial
Credit quality information
2023	45	1,450
2022	1,403
2021		53
2020	48	803
2019	956	201
Prior	735	619
Total	3,187	3,126
Commercial and industrial \| Substandard \| Total commercial and industrial
Credit quality information
2022	102	113
2021	142	111
2020	120	65
2019	335	299
Prior	2,336	2,106
Total	3,035	2,694
Commercial and industrial \| Doubtful \| Total commercial and industrial
Credit quality information
Prior		40
Total		40
Residential mortgages \| Residential real estate
Credit quality information
2023	21,385	195,320
2022	196,948	177,525
2021	176,252	111,021
2020	109,432	69,219
2019	67,804	48,438
Prior	389,880	353,445
Total	961,701	954,968
Current period gross write-offs
Prior	4
Total	4
Residential mortgages \| Performing \| Residential real estate
Credit quality information
2023	21,385	195,320
2022	196,948	177,480
2021	176,209	111,021
2020	109,432	69,170
2019	67,756	47,797
Prior	385,905	349,795
Total	957,635	950,583
Residential mortgages \| Nonperforming \| Residential real estate
Credit quality information
2022		45
2021	43
2020		49
2019	48	641
Prior	3,975	3,650
Total	4,066	4,385
Home equity
Credit quality information
2023	3,428	17,107
2022	18,315	10,638
2021	10,306	8,139
2020	7,383	6,830
2019	5,953	6,997
Prior	44,392	41,154
Total	89,777	90,865
Home equity \| Performing
Credit quality information
2023	3,428	17,107
2022	18,315	10,638
2021	10,306	8,139
2020	7,383	6,830
2019	5,953	6,997
Prior	43,459	40,191
Total	88,844	89,902
Home equity \| Nonperforming
Credit quality information
Prior	933	963
Total	933	963
Other consumer \| Consumer
Credit quality information
2023	1,862	4,321
2022	2,659	1,341
2021	1,150	868
2020	722	265
2019	181	64
Prior	961	942
Total	7,535	7,801
Current period gross write-offs
2022	52
2021	8
2020	2
Prior	1
Total	63
Other consumer \| Performing \| Consumer
Credit quality information
2023	1,862	4,321
2022	2,659	1,341
2021	1,150	863
2020	718	265
2019	181	64
Prior	961	942
Total	7,531	7,796
Other consumer \| Nonperforming \| Consumer
Credit quality information
2021		5
2020	4
Total	$ 4	$ 5

LOANS AND ALLOWANCE FOR CREDI_7

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Past Due Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Past Due [Line Items]
Total loans	$ 2,944,005	$ 2,902,690
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	6,970	1,659
60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	910	661
90 Days or Greater Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	2,579	2,423
Total Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	10,459	4,743
Current
Financing Receivable, Past Due [Line Items]
Total Past Due	2,933,546	2,897,947
Construction and land development \| Total commercial loans
Financing Receivable, Past Due [Line Items]
Total loans	132,960	117,577
Construction and land development \| Total commercial loans \| Current
Financing Receivable, Past Due [Line Items]
Total Past Due	132,960	117,577
Commercial real estate owner occupied \| Total commercial real estate
Financing Receivable, Past Due [Line Items]
Total loans	261,365	244,814
Commercial real estate owner occupied \| Total commercial real estate \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	197	385
Commercial real estate owner occupied \| Total commercial real estate \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	227
Commercial real estate owner occupied \| Total commercial real estate \| 90 Days or Greater Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	308
Commercial real estate owner occupied \| Total commercial real estate \| Total Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	732	385
Commercial real estate owner occupied \| Total commercial real estate \| Current
Financing Receivable, Past Due [Line Items]
Total Past Due	260,633	244,429
Commercial real estate non-owner occupied \| Total commercial real estate
Financing Receivable, Past Due [Line Items]
Total loans	1,149,030	1,146,674
Commercial real estate non-owner occupied \| Total commercial real estate \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	352	45
Commercial real estate non-owner occupied \| Total commercial real estate \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		145
Commercial real estate non-owner occupied \| Total commercial real estate \| 90 Days or Greater Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	133	139
Commercial real estate non-owner occupied \| Total commercial real estate \| Total Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	485	329
Commercial real estate non-owner occupied \| Total commercial real estate \| Current
Financing Receivable, Past Due [Line Items]
Total Past Due	1,148,545	1,146,345
Tax exempt
Financing Receivable, Past Due [Line Items]
Total loans	43,253	42,879
Tax exempt \| Current
Financing Receivable, Past Due [Line Items]
Total Past Due	43,253	42,879
Commercial and industrial \| Total commercial and industrial
Financing Receivable, Past Due [Line Items]
Total loans	298,384	297,112
Commercial and industrial \| Total commercial and industrial \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	261	169
Commercial and industrial \| Total commercial and industrial \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	281
Commercial and industrial \| Total commercial and industrial \| 90 Days or Greater Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	134	9
Commercial and industrial \| Total commercial and industrial \| Total Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	676	178
Commercial and industrial \| Total commercial and industrial \| Current
Financing Receivable, Past Due [Line Items]
Total Past Due	297,708	296,934
Residential mortgages \| Total residential real estate
Financing Receivable, Past Due [Line Items]
Total loans	961,701	954,968
Residential mortgages \| Total residential real estate \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	5,325	803
Residential mortgages \| Total residential real estate \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	393	348
Residential mortgages \| Total residential real estate \| 90 Days or Greater Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	1,728	2,029
Residential mortgages \| Total residential real estate \| Total Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	7,446	3,180
Residential mortgages \| Total residential real estate \| Current
Financing Receivable, Past Due [Line Items]
Total Past Due	954,255	951,788
Home equity
Financing Receivable, Past Due [Line Items]
Total loans	89,777	90,865
Home equity \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	821	216
Home equity \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		160
Home equity \| 90 Days or Greater Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	276	246
Home equity \| Total Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	1,097	622
Home equity \| Current
Financing Receivable, Past Due [Line Items]
Total Past Due	88,680	90,243
Other consumer \| Total consumer
Financing Receivable, Past Due [Line Items]
Total loans	7,535	7,801
Other consumer \| Total consumer \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	14	41
Other consumer \| Total consumer \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	9	8
Other consumer \| Total consumer \| Total Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	23	49
Other consumer \| Total consumer \| Current
Financing Receivable, Past Due [Line Items]
Total Past Due	$ 7,512	$ 7,752

LOANS AND ALLOWANCE FOR CREDI_8

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Non-accrual Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Non-accrual loans
Nonaccrual	$ 7,796	$ 6,549
Nonaccrual With No Related Allowance	2,128	2,334
Nonaccrual, Past Due 90 days and Accruing	138	216
Commercial real estate owner occupied \| Total commercial real estate
Non-accrual loans
Nonaccrual	432	439
Nonaccrual With No Related Allowance	362	360
Commercial real estate non-owner occupied \| Total commercial real estate
Non-accrual loans
Nonaccrual	529	550
Nonaccrual With No Related Allowance	396	411
Commercial and industrial \| Total commercial and industrial
Non-accrual loans
Nonaccrual	1,832	207
Nonaccrual With No Related Allowance	138	145
Residential mortgages \| Total residential real estate
Non-accrual loans
Nonaccrual	4,066	4,385
Nonaccrual With No Related Allowance	1,181	1,361
Nonaccrual, Past Due 90 days and Accruing	93	202
Home equity
Non-accrual loans
Nonaccrual	933	963
Nonaccrual With No Related Allowance	51	57
Nonaccrual, Past Due 90 days and Accruing	45	14
Other consumer \| Total consumer
Non-accrual loans
Nonaccrual	$ 4	$ 5

LOANS AND ALLOWANCE FOR CREDI_9

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Amortized Cost Basis of Collateral Dependent Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Allowance for loan losses
Loans and Leases Receivable, Net Amount	$ 2,917,398	$ 2,876,830
Real Estate
Allowance for loan losses
Loans and Leases Receivable, Net Amount	6,186	6,433
Other Collateral Loans
Allowance for loan losses
Loans and Leases Receivable, Net Amount	1,610	116
Commercial real estate owner occupied \| Total commercial real estate \| Real Estate
Allowance for loan losses
Loans and Leases Receivable, Net Amount	432	439
Commercial real estate non-owner occupied \| Total commercial real estate \| Real Estate
Allowance for loan losses
Loans and Leases Receivable, Net Amount	529	550
Commercial and industrial \| Total commercial and industrial \| Real Estate
Allowance for loan losses
Loans and Leases Receivable, Net Amount	222	91
Commercial and industrial \| Total commercial and industrial \| Other Collateral Loans
Allowance for loan losses
Loans and Leases Receivable, Net Amount	1,610	116
Residential mortgages \| Total residential real estate \| Real Estate
Allowance for loan losses
Loans and Leases Receivable, Net Amount	4,066	4,385
Home equity \| Real Estate
Allowance for loan losses
Loans and Leases Receivable, Net Amount	933	963
Other consumer \| Total consumer \| Real Estate
Allowance for loan losses
Loans and Leases Receivable, Net Amount	$ 4	$ 5

LOANS AND ALLOWANCE FOR CRED_10

LOANS AND ALLOWANCE FOR CREDIT LOSSES - TDR, Recorded Investment and Number of Modifications (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($) loan	Mar. 31, 2022 loan	Dec. 31, 2022 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Modifications \| loan	0	0
Total residential real estate \| Residential mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential mortgage loans collateralized by real estate property in the process of foreclosure \| $	$ 570		$ 253

LOANS AND ALLOWANCE FOR CRED_11

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Mortgage Banking (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, unpaid principal balance	$ 463
Residential mortgages \| Total residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Sale of loans	691	$ 22,200
Net gains on sales of loans	$ 8	$ 182

BORROWED FUNDS - Summary of Bor

BORROWED FUNDS - Summary of Borrowed Funds (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Short-term borrowings
Carrying Value	$ 335,659	$ 331,369
Weighted Average Rate	2.86%	2.20%
Long-term borrowings
Carrying Value	$ 62,915	$ 62,877
Weighted Average Rate	5.78%	4.76%
Total borrowings	$ 398,574	$ 394,246
Weighted Average Rate	3.15%	2.45%
Advances from the FHLB
Short-term borrowings
Carrying Value	$ 322,925	$ 318,000
Weighted Average Rate	4.96%	3.84%
Long-term borrowings
Carrying Value	$ 2,585	$ 2,588
Weighted Average Rate	0.48%	0.48%
Other borrowings
Short-term borrowings
Carrying Value	$ 12,734	$ 13,369
Weighted Average Rate	0.13%	0.13%
Subordinated borrowings
Long-term borrowings
Carrying Value	$ 60,330	$ 60,289
Weighted Average Rate	6.01%	4.95%

BORROWED FUNDS - Additional Inf

BORROWED FUNDS - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Outstanding advances of FRB	$ 335,659	$ 331,369
Outstanding amount	62,915	62,877
Financial Guarantee \| NHTB Capital Trust II and NHTB Capital Trust III
Debt Instrument [Line Items]
Debentures issued by variable interest entities	$ 20,600
LIBOR \| Financial Guarantee
Debt Instrument [Line Items]
Interest rate margin	2.79%
Callable Advances
Debt Instrument [Line Items]
Outstanding amount		0
Amortizing Advances
Debt Instrument [Line Items]
Outstanding amount		288
FHLB advances
Debt Instrument [Line Items]
Outstanding amount	$ 285
Advances from the FHLB
Debt Instrument [Line Items]
Outstanding advances of FRB	322,925	318,000
Outstanding amount	2,585	2,588
Credit Facility, Secured, FHLB [Member]
Debt Instrument [Line Items]
Line of credit maintained	1,000
Line of credit outstanding	0	0
Credit Facility, Secured, FRB [Member]
Debt Instrument [Line Items]
Line of credit maintained	177,500
Line of credit outstanding	0	0
Credit Facility, Unsecured, Federal Funds [Member]
Debt Instrument [Line Items]
Line of credit maintained	50,000	50,000
Line of credit outstanding	$ 0	$ 0

BORROWED FUNDS - Maturities of

BORROWED FUNDS - Maturities of FHLB Advances (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Amount
2023	$ 322,925
2024	2,300
Thereafter	285
Total FHLB advances	$ 325,510
Weighted Average Rate
2023	4.96%
Thereafter	4.32%
Total FHLB advances	4.93%

BORROWED FUNDS - Subordinated a

BORROWED FUNDS - Subordinated and Junior Subordinated Borrowings (Details) - Subordinated borrowings private placement - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Nov. 26, 2019
Debt Instrument [Line Items]
Principal amount of debt issued			$ 40,000
Fixed interest rate			4.63%
Debt issuance costs	$ 291	$ 331
SOFR
Debt Instrument [Line Items]
Interest rate margin	3.27%

BORROWED FUNDS - Repurchase Agr

BORROWED FUNDS - Repurchase Agreements (Details) - Customer Repurchase Agreements - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total secured borrowings	$ 12,734	$ 13,369
US Government sponsored enterprises
Debt Instrument [Line Items]
Total secured borrowings	$ 12,734	$ 13,369

DEPOSITS - Components (Details)

DEPOSITS - Components (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
DEPOSITS.
Time less than $100,000	$ 215,300	$ 157,263
Time $100,000 through $250,000	126,907	118,655
Time $250,000 or more	62,039	47,521
Total	$ 404,246	$ 323,439

DEPOSITS - Maturities, Brokered

DEPOSITS - Maturities, Brokered, Reciprocal (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Time Deposits, Fiscal Year Maturity [Abstract]
Within 1 year	$ 342,053	$ 262,338
Over 1 year to 2 years	41,116	37,937
Over 2 years to 3 years	11,416	12,936
Over 3 years to 4 years	4,880	5,410
Over 4 years to 5 years	4,381	4,319
Over 5 years	400	499
Total	404,246	323,439
Brokered deposits	68,200	15,100
Reciprocal deposits	$ 25,300	$ 27,400

CAPITAL RATIOS AND SHAREHOLDE_3

CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Actual and Required Capital Ratios (Details) $ in Thousands	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Actual
Total capital to risk-weighted assets	$ 427,290	$ 416,900
Common equity tier 1 capital to risk-weighted assets	336,331	326,513
Tier 1 capital to risk-weighted assets	347,133	347,133
Tier 1 capital to average assets	$ 347,133	$ 347,133
Total capital to risk-weighted assets, ratio	0.1365	0.1350
Common equity tier 1 capital to risk-weighted assets, ratio	0.1074	0.1057
Tier 1 capital to risk-weighted assets, ratio	0.1140	0.1124
Tier 1 capital to average assets (leverage ratio)	0.0933	0.0921
Minimum Regulatory Capital Requirements
Total capital to risk-weighted assets	$ 250,436	$ 247,041
Common equity tier 1 capital to risk-weighted assets	140,871	138,960
Tier 1 capital to risk-weighted assets	182,662	185,281
Tier 1 capital to average assets	$ 148,896	$ 150,772
Minimum regulatory capital requirements, Total capital to risk-weighted assets, ratio	0.0800	0.0800
Minimum regulatory capital requirements, Common equity tier 1 capital to risk-weighted assets, ratio	4.50%	4.50%
Minimum regulatory capital requirements, Tier 1 capital to risk-weighted assets, ratio	0.0600	0.0600
Minimum regulatory capital requirements, Tier 1 capital to average assets, (leverage ratio)	0.0400	0.0400
Bank
Actual
Total capital to risk-weighted assets	$ 419,780	$ 410,053
Common equity tier 1 capital to risk-weighted assets	389,441	380,286
Tier 1 capital to risk-weighted assets	389,441	380,286
Tier 1 capital to average assets	$ 389,441	$ 380,286
Total capital to risk-weighted assets, ratio	0.1350	0.1329
Common equity tier 1 capital to risk-weighted assets, ratio	0.1124	0.1233
Tier 1 capital to risk-weighted assets, ratio	0.1124	0.1233
Tier 1 capital to average assets (leverage ratio)	0.1057	0.1010
Minimum Regulatory Capital Requirements
Total capital to risk-weighted assets	$ 248,747	$ 246,812
Common equity tier 1 capital to risk-weighted assets	155,897	138,832
Tier 1 capital to risk-weighted assets	207,863	185,110
Tier 1 capital to average assets	$ 147,326	$ 150,655
Minimum regulatory capital requirements, Total capital to risk-weighted assets, ratio	0.0800	0.0800
Minimum regulatory capital requirements, Common equity tier 1 capital to risk-weighted assets, ratio	4.50%	4.50%
Minimum regulatory capital requirements, Tier 1 capital to risk-weighted assets, ratio	0.0600	0.0600
Minimum regulatory capital requirements, Tier 1 capital to average assets, (leverage ratio)	0.0400	0.0400

CAPITAL RATIOS AND SHAREHOLDE_4

CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Components of AOCI (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss	$ (53,151)	$ (58,340)
Net unrealized gain on AFS securities:
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, before tax:	(65,826)	(71,832)
Income taxes related to items of accumulated other comprehensive income:	15,180	16,586
Accumulated other comprehensive loss	(50,646)	(55,246)	$ (20,225)	$ 1,985
Net unrealized gain arising during the period
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, before tax:	(1,566)	(2,333)
Income taxes related to items of accumulated other comprehensive income:	361	539
Accumulated other comprehensive loss	(1,205)	(1,794)	(578)	870
Net unrealized loss on post-retirement plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, before tax:	(1,675)	(1,691)
Income taxes related to items of accumulated other comprehensive income:	375	391
Accumulated other comprehensive loss	$ (1,300)	$ (1,300)	$ (552)	$ (552)

CAPITAL RATIOS AND SHAREHOLDE_5

CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Components of OCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net unrealized gain arising during the period
Before Tax	$ 589	$ (1,448)
Other comprehensive (loss) income
Before Tax	6,773	(30,725)
Tax Effect	(1,584)	7,067
Total other comprehensive income (loss)	5,189	(23,658)
Net unrealized gain on AFS securities:
Net unrealized gain arising during the period
Before Tax	6,040	(28,835)
Tax Effect	(1,414)	6,632
Net of Tax	4,626	(22,203)
Less: reclassification adjustment for gains (losses) realized in net income
Before Tax	34	9
Tax Effect	(8)	(2)
Net of Tax	26	7
Other comprehensive (loss) income
Before Tax	6,006	(28,844)
Tax Effect	(1,406)	6,634
Total other comprehensive income (loss)	4,600	(22,210)
Net unrealized gain arising during the period
Net unrealized gain arising during the period
Before Tax	767	(1,881)
Tax Effect	(178)	433
Net of Tax	589	(1,448)
Less: reclassification adjustment for gains (losses) realized in net income
Net of Tax	0	0
Other comprehensive (loss) income
Before Tax	767	(1,881)
Tax Effect	(178)	433
Total other comprehensive income (loss)	589	(1,448)
Net unrealized loss on post-retirement plans
Net unrealized gain arising during the period
Net of Tax	0	0
Less: reclassification adjustment for gains (losses) realized in net income
Net of Tax	0	0
Other comprehensive (loss) income
Total other comprehensive income (loss)	$ 0	$ 0

CAPITAL RATIOS AND SHAREHOLDE_6

CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Changes in AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax
Beginning accumulated other comprehensive income	$ (58,340)
Total other comprehensive income (loss)	5,189	$ (23,658)
Ending accumulated other comprehensive income	(53,151)
Net unrealized gain on AFS securities:
Accumulated Other Comprehensive Income (Loss), Net of Tax
Beginning accumulated other comprehensive income	(55,246)	1,985
Other comprehensive (loss) gain before reclassifications	4,626	(22,203)
Less: amounts reclassified from accumulated other comprehensive income	26	7
Total other comprehensive income (loss)	4,600	(22,210)
Ending accumulated other comprehensive income	(50,646)	(20,225)
Net unrealized gain arising during the period
Accumulated Other Comprehensive Income (Loss), Net of Tax
Beginning accumulated other comprehensive income	(1,794)	870
Other comprehensive (loss) gain before reclassifications	589	(1,448)
Less: amounts reclassified from accumulated other comprehensive income	0	0
Total other comprehensive income (loss)	589	(1,448)
Ending accumulated other comprehensive income	(1,205)	(578)
Net unrealized loss on post-retirement plans
Accumulated Other Comprehensive Income (Loss), Net of Tax
Beginning accumulated other comprehensive income	(1,300)	(552)
Other comprehensive (loss) gain before reclassifications	0	0
Less: amounts reclassified from accumulated other comprehensive income	0	0
Total other comprehensive income (loss)	0	0
Ending accumulated other comprehensive income	(1,300)	(552)
Accumulated other comprehensive income (loss)
Accumulated Other Comprehensive Income (Loss), Net of Tax
Beginning accumulated other comprehensive income	(58,340)	2,303
Other comprehensive (loss) gain before reclassifications	5,215	(23,651)
Less: amounts reclassified from accumulated other comprehensive income	26	7
Total other comprehensive income (loss)	5,189	(23,658)
Ending accumulated other comprehensive income	$ (53,151)	$ (21,355)

CAPITAL RATIOS AND SHAREHOLDE_7

CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Amounts Reclassified Out of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Non-interest income	$ 9,184	$ 9,309
Non-interest expense	22,704	21,886
Tax expense	(3,576)	(2,232)
Realized Gains	34	9
Realized Losses	0	0
Reclassification out of AOCI \| Available-for-sale Securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Non-interest income	34	9
Tax expense	(8)	(2)
Net of tax	$ 26	$ 7

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
EARNINGS PER SHARE
Net income	$ 13,012	$ 9,112
Average number of basic common shares outstanding (in shares)	15,109,847	15,010,834
Plus: dilutive effect of stock options and awards outstanding (in shares)	80,242	90,951
Average number of diluted common shares outstanding (in shares)	15,190,089	15,101,785
Earnings per share:
Basic (in dollars per share)	$ 0.86	$ 0.61
Diluted (in dollars per share)	$ 0.86	$ 0.60

DERIVATIVE FINANCIAL INSTRUME_3

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Apr. 30, 2020	Dec. 31, 2019	Nov. 30, 2019
Derivative [Line Items]
Notional Amount	$ 772,952	$ 774,019
Fair Value Asset (Liability)	3,974	4,811
Interest rate swap on deposits
Derivative [Line Items]
Notional Amount			$ 25,000		$ 50,000
Designated as hedging instrument \| Cash flow hedges
Derivative [Line Items]
Notional Amount	125,000	125,000
Fair Value Asset (Liability)	14	37
Designated as hedging instrument \| Cash flow hedges \| Interest rate cap agreements
Derivative [Line Items]
Notional Amount	$ 75,000	$ 75,000
Weighted Average Maturity (in years)	1 year 9 months 18 days	2 years
Fair Value Asset (Liability)	$ 4,184	$ 4,978
Designated as hedging instrument \| Cash flow hedges \| Interest rate swap on variable rate loans
Derivative [Line Items]
Notional Amount	$ 50,000	$ 50,000
Weighted Average Maturity (in years)	3 years	3 years 2 months 12 days
Fair Value Asset (Liability)	$ (4,170)	$ (4,941)
Designated as hedging instrument \| Fair Value Hedging
Derivative [Line Items]
Notional Amount	37,190	37,190
Fair Value Asset (Liability)	3,952	4,774
Designated as hedging instrument \| Fair Value Hedging \| Interest rate swap on deposits
Derivative [Line Items]
Notional Amount	$ 37,190	$ 37,190		$ 37,200
Weighted Average Maturity (in years)	6 years 3 months 18 days	6 years 7 months 6 days
Fair Value Asset (Liability)	$ 3,952	$ 4,774
Hedged Asset, Fair Value Hedge	31,658	41,964
Cumulative amount of fair value hedging adjustment in carrying amount	(5,532)	4,774
Designated as hedging instrument \| Economic hedges
Derivative [Line Items]
Notional Amount	610,210	611,829
Designated as hedging instrument \| Economic hedges \| Customer loan derivative liability \| MNA counterparty
Derivative [Line Items]
Notional Amount	$ 192,269	$ 191,987
Weighted Average Maturity (in years)	5 years 6 months	5 years 9 months 18 days
Fair Value Asset (Liability)	$ (16,375)	$ (20,287)
Designated as hedging instrument \| Economic hedges \| Customer loan derivative liability \| RPA counterparty
Derivative [Line Items]
Notional Amount	$ 112,836	$ 113,928
Weighted Average Maturity (in years)	5 years 8 months 12 days	6 years
Fair Value Asset (Liability)	$ (23)
Designated as hedging instrument \| Economic hedges \| Customer loan derivative liability \| Customer
Derivative [Line Items]
Notional Amount	$ 305,105	$ 305,914
Weighted Average Maturity (in years)	5 years 7 months 6 days	5 years 10 months 24 days
Fair Value Asset (Liability)	$ 16,398	$ 20,287
Not designated as hedging instrument
Derivative [Line Items]
Notional Amount	552
Fair Value Asset (Liability)	8
Not designated as hedging instrument \| Interest Rate Lock Commitment
Derivative [Line Items]
Notional Amount	$ 552
Weighted Average Maturity (in years)	2 months 12 days
Fair Value Asset (Liability)	$ 8

DERIVATIVE FINANCIAL INSTRUME_4

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Amount of Gain (Loss) recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income	$ 589	$ (1,448)
Amount of Gain (Loss) Recognized in Income	492	(334)
Designated as hedging instrument \| Cash flow hedges
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income	(18)	393
Amount of Gain (Loss) Recognized in Income	198	(97)
Designated as hedging instrument \| Cash flow hedges \| Interest rate swap on deposits
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income	(610)	2,191
Amount of Gain (Loss) Recognized in Income	664	(113)
Designated as hedging instrument \| Cash flow hedges \| Interest rate swap on variable rate loans
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income	592	(1,798)
Amount of Gain (Loss) Recognized in Income	(466)	16
Designated as hedging instrument \| Fair Value Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income	607	(1,841)
Amount of Gain (Loss) Recognized in Income	286	(135)
Designated as hedging instrument \| Fair Value Hedging \| Interest rate swap on deposits
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income	607	(1,841)
Amount of Gain (Loss) Recognized in Income	286	(135)
Designated as hedging instrument \| Economic hedges
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income		186
Designated as hedging instrument \| Economic hedges \| Forward sale commitments
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income		186
Not designated as hedging instrument
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income	8	(288)
Not designated as hedging instrument \| Interest Rate Lock Commitment
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income	$ 8	$ (288)

DERIVATIVE FINANCIAL INSTRUME_5

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Consolidated statements of income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income	$ 492	$ (334)
Not designated as hedging instrument
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income	8	(288)
Not designated as hedging instrument \| Interest Rate Lock Commitment
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income	$ 8	$ (288)

DERIVATIVE FINANCIAL INSTRUME_6

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Additional information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) item	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)	Apr. 30, 2020 USD ($)	Dec. 31, 2019 USD ($) item	Nov. 30, 2019 USD ($)
Derivative [Line Items]
Acquisition, conversion and other expenses	$ 20	$ 325
Notional amount of interest rate swap	772,952		$ 774,019
Interest rate swap on variable rate loans
Derivative [Line Items]
Variable rate loan assets	$ 50,000
Interest rate swap on variable rate loans \| London Interbank Offered Rate Less Two Days
Derivative [Line Items]
Variable interest rate	0.806%
Interest rate swap on deposits
Derivative [Line Items]
Derivative, Number of Instruments Held \| item	2
Term of interest rate swap	5 years
Fixed rate of interest rate swap				0.59%		1.53%
Notional amount of interest rate swap				$ 25,000		$ 50,000
Designated as hedging instrument \| Cash flow hedges
Derivative [Line Items]
Notional amount of interest rate swap	$ 125,000		125,000
Designated as hedging instrument \| Cash flow hedges \| Interest rate cap agreements
Derivative [Line Items]
Notional amount of interest rate swap	75,000		75,000
Designated as hedging instrument \| Cash flow hedges \| Interest rate swap on variable rate loans
Derivative [Line Items]
Notional amount of interest rate swap	50,000		50,000
Designated as hedging instrument \| Fair Value Hedging
Derivative [Line Items]
Notional amount of interest rate swap	37,190		37,190
Designated as hedging instrument \| Fair Value Hedging \| Interest rate swap on deposits
Derivative [Line Items]
Derivative, Number of Instruments Held \| item					8
Notional amount of interest rate swap	37,190		37,190		$ 37,200
Fixed interest rate, weighted average					1.696%
Designated as hedging instrument \| Economic hedges
Derivative [Line Items]
Notional amount of interest rate swap	$ 610,210		$ 611,829
Forward sale commitments \| item	0

DERIVATIVE FINANCIAL INSTRUME_7

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Effect of cash flow hedging and fair value (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Loans
Derivative Instruments, Gain (Loss) [Line Items]
Income and expense line items presented in the consolidated statements of income	$ 34,560	$ 22,671
Securities and other
Derivative Instruments, Gain (Loss) [Line Items]
Income and expense line items presented in the consolidated statements of income	5,791	3,826
Deposits
Derivative Instruments, Gain (Loss) [Line Items]
Income and expense line items presented in the consolidated statements of income	5,265	1,189
Borrowings
Derivative Instruments, Gain (Loss) [Line Items]
Income and expense line items presented in the consolidated statements of income	4,180	1,010
Non-interest Income
Derivative Instruments, Gain (Loss) [Line Items]
Income and expense line items presented in the consolidated statements of income	9,184	9,309
Interest rate swap on wholesale funding \| Cash flow hedges \| Borrowings
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on cash flow hedges:	664	(113)
Interest rate swap on variable rate loans \| Cash flow hedges \| Loans
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on cash flow hedges:	(466)	16
Interest rate swap on securities \| Fair Value Hedging \| Securities and other
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on fair value hedges:	$ 286	$ (135)

DERIVATIVE FINANCIAL INSTRUME_8

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Derivative [Line Items]
Cash Collateral Pledged
Net Amount
MNA counterparty
Derivative [Line Items]
Cash Collateral Pledged
Net Amount
RPA counterparty
Derivative [Line Items]
Cash Collateral Pledged
Net Amount
Customer loan derivative liability
Derivative [Line Items]
Derivative liabilities	(16,398)	(20,287)
Customer loan derivative liability \| MNA counterparty
Derivative [Line Items]
Derivative liabilities	(16,375)	(20,287)
Customer loan derivative liability \| RPA counterparty
Derivative [Line Items]
Derivative liabilities	(23)
Customer loan derivative asset
Derivative [Line Items]
Derivative Assets	16,398	20,287
Customer loan derivative asset \| MNA counterparty
Derivative [Line Items]
Derivative Assets	16,375	$ 20,287
Customer loan derivative asset \| RPA counterparty
Derivative [Line Items]
Derivative Assets	$ 23

FAIR VALUE MEASUREMENTS - Measu

FAIR VALUE MEASUREMENTS - Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 557,040	$ 559,516
US Government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	214,300	215,027
US Government agency
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	80,938	82,266
Private label
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	58,500	60,154
Obligations of states and political subdivisions thereof
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	111,165	107,737
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	92,137	94,332
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	463
Derivative assets	24,542	30,039
Derivative liabilities	(20,568)	(25,228)
Recurring \| US Government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed securities available for sale	214,300	215,027
Recurring \| US Government agency
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed securities available for sale	80,938	82,266
Recurring \| Private label
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed securities available for sale	58,500	60,154
Recurring \| Obligations of states and political subdivisions thereof
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	111,165	107,737
Recurring \| Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	92,137	94,332
Recurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0
Derivative liabilities	0
Recurring \| Level 1 \| US Government agency
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed securities available for sale	0
Recurring \| Level 1 \| Obligations of states and political subdivisions thereof
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0
Recurring \| Level 1 \| Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0
Recurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	463
Derivative assets	24,534	30,039
Derivative liabilities	(20,568)	(25,228)
Recurring \| Level 2 \| US Government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed securities available for sale	214,300	215,027
Recurring \| Level 2 \| US Government agency
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed securities available for sale	80,938	82,266
Recurring \| Level 2 \| Private label
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed securities available for sale	58,500	60,154
Recurring \| Level 2 \| Obligations of states and political subdivisions thereof
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	111,165	107,737
Recurring \| Level 2 \| Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	92,137	$ 94,332
Recurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	8
Derivative liabilities	0
Recurring \| Level 3 \| US Government agency
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed securities available for sale	0
Recurring \| Level 3 \| Obligations of states and political subdivisions thereof
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0
Recurring \| Level 3 \| Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 0

FAIR VALUE MEASUREMENTS - Chang

FAIR VALUE MEASUREMENTS - Changes in Level 3 (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Net Derivative Asset (Liability), Gain (Loss), Statement of Income [Extensible List]	Noninterest Income	Noninterest Income
Interest Rate Lock Commitment
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation
Beginning balance		$ 283
Realized (loss) gain recognized in non-interest income	$ 8	(288)
Ending balance	8	(5)
Forward Commitments
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation
Beginning balance	0	15
Realized (loss) gain recognized in non-interest income	0	186
Ending balance	$ 0	$ 201

FAIR VALUE MEASUREMENTS - Unobs

FAIR VALUE MEASUREMENTS - Unobservable Inputs Recurring (Details)	3 Months Ended
	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items}
Derivative asset (liability), fair value	$ 3,974,000	$ 4,811,000
Recurring \| Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items}
Total	8,000
Recurring \| Level 3 \| Interest Rate Lock Commitment
Fair Value Measurement Inputs and Valuation Techniques [Line Items}
Derivative asset (liability), fair value	$ 8,000
Closing Ratio	76%
Origination Costs, per loan	$ 1,700
Recurring \| Level 3 \| Interest Rate Lock Commitment \| Discount Cash Flows
Fair Value Measurement Inputs and Valuation Techniques [Line Items}
Derivative asset (liability) net, measurement input	0.010

FAIR VALUE MEASUREMENTS - Mea_2

FAIR VALUE MEASUREMENTS - Measured on Non-recurring Basis (Details) - Non-recurring - USD ($)	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Assets
Liabilities measured at fair value	$ 0		$ 0
Level 3
Assets
Individually evaluated loans	15,513,000	$ 16,477,000
Capitalized servicing rights	6,570,000	6,845,000
Premises held for sale	252,000	252,000
Total	22,335,000	23,574,000
Total Gains (Losses)	(1,239,000)
Level 3 \| Impaired loans
Assets
Total Gains (Losses)	(964,000)
Level 3 \| Capitalized servicing rights
Assets
Total Gains (Losses)	(275,000)
Level 3 \| Assets held for sale
Assets
Premises held for sale	252,000	$ 252,000
Total Gains (Losses)	$ 0

FAIR VALUE MEASUREMENTS - Uno_2

FAIR VALUE MEASUREMENTS - Unobservable Inputs Non-recurring (Details) - Non-recurring - Level 3 - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Fair Value Measurement Inputs and Valuation Techniques [Line Items}
Individually evaluated loans	$ 15,513	$ 16,477
Capitalized servicing rights	6,570	6,845
Premises held for sale	252	252
Total	22,335	23,574
Quoted prices for similar loans in active markets
Fair Value Measurement Inputs and Valuation Techniques [Line Items}
Individually evaluated loans	11,945	13,587
Discount Cash Flows
Fair Value Measurement Inputs and Valuation Techniques [Line Items}
Individually evaluated loans	$ 3,568	$ 2,890
Impaired loans \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items}
Loss severity	10%	1%
Appraised value	$ 80	$ 80
Cash flows	$ 3	$ 100
Discount rate	3.38%	3.63%
Impaired loans \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items}
Loss severity	70%	40%
Appraised value	$ 2,941	$ 3,859
Cash flows	$ 707	$ 539
Discount rate	6.38%	6.38%
Capitalized servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items}
Constant prepayment rate	7.19%	7.29%
Discount rate	9.54%	9.54%
Assets held for sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items}
Premises held for sale	$ 252	$ 252
Selling Costs	6%	6%
Assets held for sale \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items}
Appraised value	$ 267	$ 267

FAIR VALUE MEASUREMENTS - Fair

FAIR VALUE MEASUREMENTS - Fair Values and Carrying Amounts (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financial Assets
Securities available for sale	$ 557,040	$ 559,516
Financial Liabilities
Time deposits	404,246	323,439
Carrying Amount
Financial Assets
Cash and cash equivalents	82,702	92,295
Securities available for sale	557,040	559,516
FHLB stock	15,718	14,893
Loans held for sale	463
Net loans	2,917,398	2,902,690
Accrued interest receivable	4,747	4,257
Cash surrender value of bank-owned life insurance policies	78,436	81,197
Derivative assets	24,542	30,039
Financial Liabilities
Non-maturity deposits	2,649,568	2,719,992
Time deposits	404,246	323,439
Securities sold under agreements to repurchase	12,733	13,369
FHLB advances	325,511	320,588
Subordinated borrowings	60,330	60,289
Derivative liabilities	20,568	25,228
Total Fair Value
Financial Assets
Cash and cash equivalents	82,702	92,295
Securities available for sale	557,040	559,516
FHLB stock	15,718	14,893
Loans held for sale	463
Net loans	2,789,397	2,774,863
Accrued interest receivable	4,747	4,257
Cash surrender value of bank-owned life insurance policies	8,436	81,197
Derivative assets	24,542	30,039
Financial Liabilities
Non-maturity deposits	2,306,918	2,309,555
Time deposits	395,594	315,180
Securities sold under agreements to repurchase	12,733	13,369
FHLB advances	325,334	320,244
Subordinated borrowings	66,981	66,846
Derivative liabilities	20,568	25,228
Total Fair Value \| Level 1
Financial Assets
Cash and cash equivalents	82,702	92,295
Total Fair Value \| Level 2
Financial Assets
Securities available for sale	557,040	559,516
FHLB stock	15,718	14,893
Loans held for sale	463
Accrued interest receivable	4,747	4,257
Cash surrender value of bank-owned life insurance policies	8,436	81,197
Derivative assets	24,534	30,039
Financial Liabilities
Non-maturity deposits	2,306,918	2,309,555
Time deposits	395,594	315,180
Securities sold under agreements to repurchase	12,733	13,369
FHLB advances	325,334	320,244
Subordinated borrowings	66,981	66,846
Derivative liabilities	20,568	25,228
Total Fair Value \| Level 3
Financial Assets
Net loans	2,789,397	$ 2,774,863
Derivative assets	$ 8

REVENUE FROM CONTRACTS WITH C_3

REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Total non-interest income	$ 9,184	$ 9,309
Within the scope of ASC 606
Disaggregation of Revenue [Line Items]
Total non-interest income	7,232	7,370
Not within the scope of ASC 606
Disaggregation of Revenue [Line Items]
Total non-interest income	1,952	1,939
Products and services transferred at a point in time \| Within the scope of ASC 606
Disaggregation of Revenue [Line Items]
Total non-interest income	3,950	3,757
Products and services transferred over time \| Within the scope of ASC 606
Disaggregation of Revenue [Line Items]
Total non-interest income	3,282	3,613
Non-interest Income \| Within the scope of ASC 606
Disaggregation of Revenue [Line Items]
Total non-interest income	7,232	7,370
Trust management fees \| Within the scope of ASC 606
Disaggregation of Revenue [Line Items]
Total non-interest income	3,091	3,403
Financial services fees \| Within the scope of ASC 606
Disaggregation of Revenue [Line Items]
Total non-interest income	464	351
Interchange fees \| Within the scope of ASC 606
Disaggregation of Revenue [Line Items]
Total non-interest income	2,010	1,973
Customer deposit fees \| Within the scope of ASC 606
Disaggregation of Revenue [Line Items]
Total non-interest income	1,429	1,372
Other customer service fees \| Within the scope of ASC 606
Disaggregation of Revenue [Line Items]
Total non-interest income	$ 238	$ 271

REVENUE FROM CONTRACTS WITH C_4

REVENUE FROM CONTRACTS WITH CUSTOMERS - Contract Balances from Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Balances from contracts with customers only:
Other Assets	$ 1,121	$ 1,211
Other Liabilities	$ 2,285	$ 2,345
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false]	true