Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2020


(Dollars in thousands)	March 31, 2020		December 31, 2019
Construction	$	109,608	$	99,829
Residential real estate		437,197		442,506
Commercial real estate		610,889		586,562
Commercial		96,905		102,020
Consumer		22,394		17,737
Total loans		1,276,993		1,248,654
Allowance for credit losses		(10,378)		(10,507)
Total loans, net	$	1,266,615	$	1,238,147

Allowance for Credit Losses on Financing Receivables


			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
March 31, 2020
Loans individually evaluated for impairment	$	335	$	7,652	$	11,161	$	557	$	—	$	19,705
Loans collectively evaluated for impairment		109,273		429,545		599,728		96,348		22,394		1,257,288
Total loans	$	109,608	$	437,197	$	610,889	$	96,905	$	22,394	$	1,276,993

Allowance for credit losses allocated to:
Loans individually evaluated for impairment	$	—	$	268	$	85	$	—	$	—	$	353
Loans collectively evaluated for impairment		1,128		2,214		3,880		2,263		540		10,025
Total allowance	$	1,128	$	2,482	$	3,965	$	2,263	$	540	$	10,378


			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
December 31, 2019
Loans individually evaluated for impairment	$	41	$	7,072	$	12,006	$	298	$	—	$	19,417
Loans collectively evaluated for impairment		99,788		435,434		574,556		101,722		17,737		1,229,237
Total loans	$	99,829	$	442,506	$	586,562	$	102,020	$	17,737	$	1,248,654

Allowance for credit losses allocated to:
Loans individually evaluated for impairment	$	—	$	395	$	580	$	—	$	—	$	975
Loans collectively evaluated for impairment		1,576		2,106		3,452		1,929		469		9,532
Total allowance	$	1,576	$	2,501	$	4,032	$	1,929	$	469	$	10,507

Impaired Financing Receivables



			Recorded		Recorded
	Unpaid		investment		investment				Year-to-date		Interest
	principal		with no		with an		Related		average recorded		recorded
(Dollars in thousands)	balance		allowance		allowance		allowance		investment		investment
March 31, 2020
Impaired nonaccrual loans:
Construction	$	297		297		—		—		99		—
Residential real estate		3,854		2,083		1,367		94		2,871		—
Commercial real estate		7,932		7,169		67		67		7,352		—
Commercial		684		557		—		—		382		—
Consumer		—		—		—		—		—		—
Total	$	12,767	$	10,106	$	1,434	$	161	$	10,704	$	—

Impaired accruing TDRs:
Construction	$	38	$	38	$	—	$	—	$	39	$	1
Residential real estate		4,013		2,563		1,450		174		4,023		38
Commercial real estate		3,393		2,728		665		18		3,406		24
Commercial		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total	$	7,444	$	5,329	$	2,115	$	192	$	7,468	$	63

Other Impaired accruing loans:
Construction	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate		189		189		—		—		—		—
Commercial real estate		532		532		—		—		—		—
Commercial		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total	$	721	$	721	$	—	$	—	$	—	$	—

Total impaired loans:
Construction	$	335	$	335	$	—	$	—	$	138	$	1
Residential real estate		8,056		4,835		2,817		268		6,894		38
Commercial real estate		11,857		10,429		732		85		10,758		24
Commercial		684		557		—		—		382		—
Consumer		—		—		—		—		—		—
Total	$	20,932	$	16,156	$	3,549	$	353	$	18,172	$	63



			Recorded		Recorded				March 31, 2019
	Unpaid		investment		investment				Year-to-date		Interest
	principal		with no		with an		Related		average recorded		income
(Dollars in thousands)	balance		allowance		allowance		allowance		investment		recognized
December 31, 2019
Impaired nonaccrual loans:
Construction	$	—	$	—	$	—	$	—	$	2,791	$	—
Residential real estate		2,660		678		1,797		215		3,338		—
Commercial real estate		8,242		5,680		2,137		561		9,318		—
Commercial		421		298		—		—		325		—
Consumer		—		—		—		—		—		—
Total	$	11,323	$	6,656	$	3,934	$	776	$	15,772	$	—

Impaired accruing TDRs:
Construction	$	41	$	41	$	—	$	—	$	50	$	7
Residential real estate		4,041		2,583		1,458		180		4,308		39
Commercial real estate		3,419		2,748		671		19		3,550		39
Commercial		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total	$	7,501	$	5,372	$	2,129	$	199	$	7,908	$	85

Other impaired accruing loans:
Construction	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate		556		556		—		—		—		—
Commercial real estate		770		770		—		—		—		—
Commercial		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total	$	1,326	$	1,326	$	—	$	—	$	—	$	—

Total impaired loans:
Construction	$	41	$	41	$	—	$	—	$	2,841	$	7
Residential real estate		7,257		3,817		3,255		395		7,646		39
Commercial real estate		12,431		9,198		2,808		580		12,868		39
Commercial		421		298		—		—		325		—
Consumer		—		—		—		—		—		—
Total	$	20,150	$	13,354	$	6,063	$	975	$	23,680	$	85

Troubled Debt Restructurings on Financing Receivables

The following tables provide a roll-forward for TDRs as of March 31, 2020 and March 31, 2019.


	1/1/2020												3/31/2020
	TDR		New		Disbursements		Charge-		Reclassifications/				TDR		Related
(Dollars in thousands)	Balance		TDRs		(Payments)		offs		Transfer In/(Out)		Payoffs		Balance		Allowance
For three months ended
March 31, 2020
Accruing TDRs
Construction	$	41	$	—	$	(3)	$	—	$	—	$	—	$	38	$	—
Residential real estate		4,041		—		(28)		—		—		—		4,013		174
Commercial real estate		3,419		—		(26)		—		—		—		3,393		18
Commercial		—		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—		—
Total	$	7,501	$	—	$	(57)	$	—	$	—	$	—	$	7,444	$	192

Nonaccrual TDRs
Construction	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate		1,393		—		(26)		—		—		—		1,367		94
Commercial real estate		—		1,506		(344)		—		—		—		1,162		—
Commercial		299		—		(10)		—		—		—		289		—
Consumer		—		—		—		—		—		—		—		—
Total	$	1,692	$	1,506	$	(380)	$	—	$	—	$	—	$	2,818	$	94

Total	$	9,193	$	1,506	$	(437)	$	—	$	—	$	—	$	10,262	$	286


	1/1/2019												3/31/2019
	TDR		New		Disbursements		Charge-		Reclassifications/				TDR		Related
(Dollars in thousands)	Balance		TDRs		(Payments)		offs		Transfer In/(Out)		Payoffs		Balance		Allowance
For three months ended
March 31, 2019
Accruing TDRs
Construction	$	51	$	—	$	(2)	$	—	$	—	$	—	$	49	$	—
Residential real estate		4,454		—		(23)		—		—		(197)		4,234		174
Commercial real estate		4,158		—		(613)		—		—		—		3,545		27
Commercial		—		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—		—
Total	$	8,663	$	—	$	(638)	$	—	$	—	$	(197)	$	7,828	$	201

Nonaccrual TDRs
Construction	$	2,798	$	—	$	(33)	$	—	$	—	$	—	$	2,765	$	279
Residential real estate		—		—		—		—		—		—		—		—
Commercial real estate		—		—		—		—		—		—		—		—
Commercial		320		—		(5)		—		—		—		315		12
Consumer		—		—		—		—		—		—		—		—
Total	$	3,118	$	—	$	(38)	$	—	$	—	$	—	$	3,080	$	291

Total	$	11,781	$	—	$	(676)	$	—	$	—	$	(197)	$	10,908	$	492

The following tables provide information on loans that were modified and considered TDRs during the three months ended March 31, 2020 and March 31, 2019.


		Premodification		Postmodification
		outstanding		outstanding
	Number of	recorded		recorded		Related
(Dollars in thousands)	contracts	investment		investment		allowance
TDRs:
For three months ended
March 31, 2020
Construction	—	$	—	$	—	$	—
Residential real estate	—		—		—		—
Commercial real estate	1		1,535		1,162		—
Commercial	—		—		—		—
Consumer	—		—		—		—
Total	1	$	1,535	$	1,162	$	—

For three months ended
March 31, 2019
Construction	—	$	—	$	—	$	—
Residential real estate	—		—		—		—
Commercial real estate	—		—		—		—
Commercial	—		—		—		—
Consumer	—		—		—		—
Total	—	$	—	$	—	$	—

Troubled Debt Restructurings That Defaulted On Financing Receivables


	Number of	Recorded		Related
(Dollars in thousands)	contracts	investment		allowance
TDRs that subsequently defaulted:
For three months ended
March 31, 2020
Construction	—	$	—	$	—
Residential real estate	—		—		—
Commercial real estate	—		—		—
Commercial	—		—		—
Consumer	—		—		—
Total	—	$	—	$	—

For three months ended
March 31, 2019
Construction	—	$	—	$	—
Residential real estate	—		—		—
Commercial real estate	—		—		—
Commercial	—		—		—
Consumer	—		—		—
Total	—	$	—	$	—

Financing Receivable Credit Quality Indicators


					Special
(Dollars in thousands)	Pass/Performing		Pass/Watch		Mention		Substandard		Doubtful		Total
March 31, 2020
Construction	$	91,507	$	15,730	$	2,074	$	297	$	—	$	109,608
Residential real estate		399,006		29,645		4,550		3,996		—		437,197
Commercial real estate		470,751		123,013		6,568		10,557		—		610,889
Commercial		63,627		32,236		454		588		—		96,905
Consumer		22,033		355		2		4		—		22,394
Total	$	1,046,924	$	200,979	$	13,648	$	15,442	$	—	$	1,276,993


					Special
(Dollars in thousands)	Pass/Performing		Pass/Watch		Mention		Substandard		Doubtful		Total
December 31, 2019
Construction	$	84,357	$	13,068	$	2,404	$	—	$	—	$	99,829
Residential real estate		404,500		29,223		5,549		3,234		—		442,506
Commercial real estate		455,388		115,190		4,822		11,162		—		586,562
Commercial		80,816		20,130		746		328		—		102,020
Consumer		17,347		383		2		5		—		17,737
Total	$	1,042,408	$	177,994	$	13,523	$	14,729	$	—	$	1,248,654

Past Due Financing Receivables


	Accruing
				30‑59 days			60‑89 days			Greater than			Total
(Dollars in thousands)	Current			past due			past due			90 days			past due			Nonaccrual			Total
March 31, 2020
Construction	$	109,101		$	210		$	—		$	—		$	210		$	297		$	109,608
Residential real estate		428,930			4,073			555			189			4,817			3,450			437,197
Commercial real estate		600,382			2,249			490			532			3,271			7,236			610,889
Commercial		96,024			95			229			—			324			557			96,905
Consumer		22,331			63			—			—			63			—			22,394
Total	$	1,256,768		$	6,690		$	1,274		$	721		$	8,685		$	11,540		$	1,276,993
Percent of total loans		98.4	%		0.5	%		0.1	%		0.1	%		0.7	%		0.9	%		100.0	%


	Accruing
				30‑59 days			60‑89 days			Greater than			Total
(Dollars in thousands)	Current			past due			past due			90 days			past due			Nonaccrual			Total
December 31, 2019
Construction	$	99,234		$	595		$	—		$	—		$	595		$	—		$	99,829
Residential real estate		435,671			3,021			783			556			4,360			2,475			442,506
Commercial real estate		577,015			743			217			770			1,730			7,817			586,562
Commercial		101,476			246			—			—			246			298			102,020
Consumer		17,680			57			—			—			57			—			17,737
Total	$	1,231,076		$	4,662		$	1,000		$	1,326		$	6,988		$	10,590		$	1,248,654
Percent of total loans		98.6	%		0.4	%		0.1	%		0.1	%		0.6	%		0.8	%		100.0	%

Consolidated Allowance for Credit Losses on Financing Receivables


			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
For three months ended
March 31, 2020
Allowance for credit losses:
Beginning Balance	$	1,576	$	2,501	$	4,032	$	1,929	$	469	$	10,507

Charge-offs		—		(191)		(271)		(82)		(7)		(551)
Recoveries		3		3		1		63		2		72
Net charge-offs		3		(188)		(270)		(19)		(5)		(479)

Provision		(451)		169		203		353		76		350
Ending Balance	$	1,128	$	2,482	$	3,965	$	2,263	$	540	$	10,378


			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
For three months ended
March 31, 2019
Allowance for credit losses:
Beginning Balance	$	2,662	$	2,353	$	3,077	$	1,949	$	302	$	10,343

Charge-offs		—		(123)		—		(81)		(6)		(210)
Recoveries		3		8		99		75		—		185
Net charge-offs		3		(115)		99		(6)		(6)		(25)

Provision		(8)		195		(119)		66		(34)		100
Ending Balance	$	2,657	$	2,433	$	3,057	$	2,009	$	262	$	10,418