Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2023

Receivables [Abstract]

Schedule of financing receivables

(Dollars in thousands)	June 30, 2023		December 31, 2022
Construction	$	220,228	$	246,319
Residential real estate		938,151		810,497
Commercial real estate		1,130,346		1,065,409
Commercial		138,459		147,856
Consumer		326,039		286,026
Total loans		2,753,223		2,556,107
Allowance for credit losses		(29,014)		(16,643)
Total loans, net	$	2,724,209	$	2,539,464

Schedule of Non accrual Loans

	Nonaccrual		Nonaccrual		Loans past due
	with no		with an		90 days or more
	allowance for		allowance for		and still
(Dollars in thousands)	credit loss		credit loss		accruing
June 30, 2023
Nonaccrual loans:
Construction	$	173	$	—	$	79
Residential real estate		2,602		131		250
Commercial real estate		368		—		721
Commercial		156		—		—
Consumer		27		24		—
Total	$	3,326	$	155	$	1,050
Interest income	$	—	$	—	$	2

Schedule of financing receivable credit quality indicators

															Revolving
	Term Loans by Origination Year												Revolving		converted to
(Dollars in thousands)	Prior		2019		2020		2021		2022		2023		loans		term loans		Total
June 30, 2023
Construction
Pass	$	15,492	$	7,228	$	16,242	$	42,062	$	103,722	$	34,080	$	1,205	$	—	$	220,031
Substandard		185		—		—		12		—		—		—		—		197
Total	$	15,677	$	7,228	$	16,242	$	42,074	$	103,722	$	34,080	$	1,205	$	—	$	220,228
Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate
Pass	$	217,796	$	35,596	$	68,945	$	177,830	$	232,814	$	127,464	$	73,990	$	321	$	934,756
Special Mention		41		—				—		—		—		193		—		234
Substandard		2,973		—		—		—		—		—		188		—		3,161
Total	$	220,810	$	35,596	$	68,945	$	177,830	$	232,814	$	127,464	$	74,371	$	321	$	938,151
Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate
Pass	$	374,795	$	105,944	$	153,693	$	195,339	$	208,386	$	71,276	$	9,083	$	1,223	$	1,119,739
Special Mention		8,421		142		—		1,395		—		—		—		—		9,958
Substandard		649		—		—		—		—		—		—		—		649
Total	$	383,865	$	106,086	$	153,693	$	196,734	$	208,386	$	71,276	$	9,083	$	1,223	$	1,130,346
Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial
Pass	$	16,181	$	3,927	$	10,511	$	33,807	$	16,906	$	5,100	$	49,134	$	1,541	$	137,107
Special Mention		—		—		—		457		—		—		440		251		1,148
Substandard		156		—		—		—		—		—		—		48		204
Total	$	16,337	$	3,927	$	10,511	$	34,264	$	16,906	$	5,100	$	49,574	$	1,840	$	138,459
Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer
Pass	$	894	$	1,517	$	17,458	$	88,451	$	157,030	$	59,935	$	702	$	—	$	325,987
Special Mention		—		—		—		—		—		—		2		—		2
Substandard		—		26		—		—		23		—		1		—		50
Total	$	894	$	1,543	$	17,458	$	88,451	$	157,053	$	59,935	$	705	$	—	$	326,039
Gross Charge-offs	$	—	$	—	$	—	$	(4)	$	—	$	(279)	$	—	$	(1)	$	(284)
Total
Pass		625,158		154,212		266,849		537,489		718,858		297,855		134,114		3,085		2,737,620
Special Mention		8,462		142		—		1,852		—		—		635		251		11,342
Substandard		3,963		26		—		12		23		—		189		48		4,261
Total loans by risk category	$	637,583	$	154,380	$	266,849	$	539,353	$	718,881	$	297,855	$	134,938	$	3,384	$	2,753,223
Total gross charge-offs	$	—	$	—	$	—	$	(4)	$	—	$	(279)	$	—	$	(1)	$	(284)

					Special
(Dollars in thousands)	Pass/Performing (1)		Pass		Mention		Substandard		Doubtful		PCI		Total
December 31, 2022
Construction	$	231,160	$	14,212	$	—	$	297	$	—	$	650	$	246,319
Residential real estate		761,405		32,467		1,239		1,430		—		13,956		810,497
Commercial real estate		929,501		121,711		1,814		517		—		11,866		1,065,409
Commercial		131,084		15,958		484		174		—		156		147,856
Consumer		285,786		196		2		28		—		14		286,026
Total	$	2,338,936	$	184,544	$	3,539	$	2,446	$	—	$	26,642	$	2,556,107

(1) Includes loans measured at fair value of $8.4 million at December 31, 2022.

Schedule of past due financing receivables

The following tables provide information on the aging of the loan portfolio as of June 30, 2023 and December 31, 2022.

	Accruing
				30‑59 days			60‑89 days			90 days or more			Total
(Dollars in thousands)	Current (1)			past due			past due			past due			past due			Nonaccrual			Total
June 30, 2023
Construction	$	218,784		$	683		$	509		$	79		$	1,271		$	173		$	220,228
Residential real estate		932,852			574			1,742			250			2,566			2,733			938,151
Commercial real estate		1,128,529			685			43			721			1,449			368			1,130,346
Commercial		138,303			—			—			—			—			156			138,459
Consumer		324,312			1,509			167			—			1,676			51			326,039
Total	$	2,742,780		$	3,451		$	2,461		$	1,050		$	6,962		$	3,481		$	2,753,223
Percent of total loans		99.7	%		0.1	%		0.1	%		—	%		0.2	%		0.1	%		100.0	%

(1) Includes loans measured at fair value of $9.7 million at June 30, 2023.

	Accruing
				30‑59 days			60‑89 days			90 days or more			Total
(Dollars in thousands)	Current (1)			past due			past due			past due			past due			Nonaccrual			PCI			Total
December 31, 2022
Construction	$	239,990		$	4,343		$	1,015		$	24		$	5,382		$	297		$	650		$	246,319
Residential real estate		787,070			6,214			891			1,107			8,212			1,259			13,956			810,497
Commercial real estate		1,052,314			369			—			710			1,079			150			11,866			1,065,409
Commercial		147,511			15			—			—			15			174			156			147,856
Consumer		285,750			223			11			—			234			28			14			286,026
Total	$	2,512,635		$	11,164		$	1,917		$	1,841		$	14,922		$	1,908		$	26,642		$	2,556,107
Percent of total loans		98.3	%		0.4	%		0.1	%		0.1	%		0.6	%		0.1	%		1.0	%		100.0	%

(1) Includes loans measured at fair value of $8.4 million at December 31, 2022.

Schedule of consolidated allowance for credit losses on financing receivables

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer (1)		Total
For three months ended
June 30, 2023
Allowance for credit losses:
Beginning Balance	$	2,689	$	8,747	$	9,858	$	1,921	$	5,249	$	28,464
Charge-offs		—		—		—		—		(177)		(177)
Recoveries		4		3		—		1		119		127
Net (charge-offs) recoveries		4		3		—		1		(58)		(50)
Provision		(307)		401		409		34		63		600
Ending Balance	$	2,386	$	9,151	$	10,267	$	1,956	$	5,254	$	29,014

(1) Gross charge-offs of consumer loans for the three months ended June 30, 2023 included $172 of demand deposit overdrafts.

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
For three months ended
June 30, 2022
Allowance for credit losses:
Beginning Balance	$	2,857	$	2,575	$	4,500	$	1,835	$	2,932	$	14,699
Charge-offs		—		(4)		(6)		(26)		(111)		(147)
Recoveries		4		73		555		20		79		731
Net (charge-offs) recoveries		4		69		549		(6)		(32)		584
Provision		484		134		(608)		(148)		338		200
Ending Balance	$	3,345	$	2,778	$	4,441	$	1,681	$	3,238	$	15,483

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer (1)		Total
For the six months ended
June 30, 2023
Allowance for credit losses:
Beginning Balance	$	2,973	$	2,622	$	4,899	$	1,652	$	4,497	$	16,643
Impact of ASC326 Adoption		1,222		4,974		3,742		401		452		10,791
Charge-offs		—		—		—		—		(284)		(284)
Recoveries		7		34		—		8		165		214
Net (charge-offs) recoveries		7		34		—		8		(119)		(70)
Provision		(1,816)		1,521		1,626		(105)		424		1,650
Ending Balance	$	2,386	$	9,151	$	10,267	$	1,956	$	5,254	$	29,014

(1) Gross charge-offs of consumer loans for the six months ended June 30, 2023 included $279 of demand deposit overdrafts.

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
For the six months ended
June 30, 2022
Allowance for credit losses:
Beginning Balance	$	2,454	$	2,858	$	4,598	$	2,070	$	1,964	$	13,944
Charge-offs		—		(4)		(6)		(25)		(220)		(255)
Recoveries		7		119		705		25		138		994
Net (charge-offs) recoveries		7		115		699		—		(82)		739
Provision		884		(195)		(856)		(389)		1,356		800
Ending Balance	$	3,345	$	2,778	$	4,441	$	1,681	$	3,238	$	15,483

Schedule of amortized cost basis of collateral-dependent loans

	June 30, 2023
(Dollars in thousands)	Real Estate Collateral		Other Collateral		Total
Construction	$	252	$	—	$	252
Residential real estate		3,219		—		3,219
Commercial real estate		1,239		—		1,239
Commercial		—		156		156
Consumer		—		51		51
Total	$	4,710	$	207	$	4,917

Schedule of loans acquired from severn

	December 31, 2022
	Acquired Loans -		Acquired Loans -
	Purchased		Purchased		Acquired Loans -
(Dollars in thousands)	Credit Impaired		Performing		Total
Outstanding principal balance	$	29,620	$	349,262	$	378,882
Carrying amount
Construction	$	650	$	18,761	$	19,411
Residential real estate		13,956		116,118		130,074
Commercial real estate		11,866		174,278		186,144
Commercial		156		35,687		35,843
Consumer		14		697		711
Total loans	$	26,642	$	345,541	$	372,183

Schedule of PCI loans acquired

	For the Six Months Ended
(Dollars in thousands)	June 30, 2022
Accretable yield, beginning of period	$	5,367
Accretion		(788)
Reclassification of nonaccretable difference due to improvement in expected cash flows		325
Other changes, net		237
Accretable yield, end of period	$	5,141

Schedule of allowance for credit losses on financing receivables

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
December 31, 2022
Loans individually evaluated for impairment	$	331	$	5,081	$	2,540	$	174	$	28	$	8,154
Loans collectively evaluated for impairment		236,901		791,460		1,051,003		147,526		285,984		2,512,874
Acquired loans - PCI		650		13,956		11,866		156		14		26,642
Total loans (1)	$	237,882	$	810,497	$	1,065,409	$	147,856	$	286,026	$	2,547,670
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	$	—	$	127	$	—	$	—	$	—	$	127
Loans collectively evaluated for impairment		2,973		2,495		4,899		1,652		4,497		16,516
Total allowance	$	2,973	$	2,622	$	4,899	$	1,652	$	4,497	$	16,643

(1) Excludes loans measured at fair value of $8.4 million at December 31, 2022.

Schedule of impaired financing receivables

			Recorded		Recorded				June 30, 2022
	Unpaid		investment		investment				Quarter-to-date		Year-to-date		Interest
	principal		with no		with an		Related		average recorded		average recorded		income
(Dollars in thousands)	balance		allowance		allowance		allowance		investment		investment		recognized
December 31, 2022
Impaired nonaccrual loans:
Construction	$	297	$	297	$	—	$	—	$	314	$	322	$	—
Residential real estate		1,363		1,259		—		—		1,487		1,482		—
Commercial real estate		159		150		—		—		740		823		—
Commercial		359		174		—		—		208		265		—
Consumer		29		28		—		—		31		52		—
Total	$	2,207	$	1,908	$	—	$	—	$	2,780	$	2,944	$	—
Impaired accruing TDRs:
Construction	$	10	$	10	$	—	$	—	$	18	$	20	$	—
Residential real estate		2,849		1,176		1,539		127		2,773		3,221		56
Commercial real estate		1,680		1,680		—		—		2,147		2,431		38
Commercial		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		9		—
Total	$	4,539	$	2,866	$	1,539	$	127	$	4,938	$	5,681	$	94
Other impaired accruing loans:
Construction	$	24	$	24	$	—	$	—	$	265	$	133	$	3
Residential real estate		1,107		1,107		—		—		5		17		4
Commercial real estate		710		710		—		—		524		471		4
Commercial		—		—		—		—		—		4		1
Consumer		—		—		—		—		—		19		—
Total	$	1,841	$	1,841	$	—	$	—	$	794	$	644	$	12
Total impaired loans:
Construction	$	331	$	331	$	—	$	—	$	597	$	475	$	3
Residential real estate		5,319		3,542		1,539		127		4,265		4,720		60
Commercial real estate		2,549		2,540		—		—		3,411		3,725		42
Commercial		359		174		—		—		208		269		1
Consumer		29		28		—		—		31		80		—
Total	$	8,587	$	6,615	$	1,539	$	127	$	8,512	$	9,269	$	106