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Loans and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2023
Receivables [Abstract]  
Schedule of financing receivables The following table provides information about the principal classes of the loan portfolio at September 30, 2023 and December 31, 2022.
(Dollars in thousands)September 30, 2023% of Total LoansDecember 31, 2022% of Total Loans
Construction$328,750 7.12 %$246,319 9.64 %
Residential real estate1,439,464 31.17 %810,497 31.71 %
Commercial real estate2,283,521 49.45 %1,065,409 41.68 %
Commercial229,474 4.97 %147,856 5.78 %
Consumer330,411 7.16 %286,026 11.19 %
Credit Cards6,099 0.13 %— — %
Total loans 4,617,719 100.00 %2,556,107 100.00 %
Allowance for credit losses on loans(57,051)(16,643)
Total loans, net$4,560,668 $2,539,464 
Schedule of acquired loans in TCFC acquisition
The following purchased credit deteriorated loans were acquired in connection with the TCFC merger on the Acquisition Date.
(Dollars in Thousands)Par ValuePurchase DiscountAllowancePurchase Price
Construction$177 $(11)$(3)$163 
Residential real estate8,379 (1,157)(215)7,007 
Commercial real estate55,779 (6,864)(985)47,930 
Commercial2,137 (59)(278)1,800 
Consumer519 (35)(14)470 
Credit Card999 (144)(18)837 
Total$67,990 $(8,270)$(1,513)$58,207 
Schedule of Non accrual Loans
The following table provides information on nonaccrual loans by loan class as of September 30, 2023.
(Dollars in thousands)Non-accrual with no allowance for credit lossNon-accrual with an allowance for credit lossTotal Non-accruals
September 30, 2023
Nonaccrual loans:
Construction$147 $— $147 
Residential real estate3,603 299 3,902 
Commercial real estate3,866 — 3,866 
Commercial 174 671 845 
Consumer203 19 222 
Total$7,993 $989 $8,982 
Interest income $— $— $— 
(Dollars in thousands)Non-accrual Delinquent LoansNon-accrual Current LoansTotal Non-accruals
September 30, 2023
Nonaccrual loans:
Construction$147 $— $147 
Residential real estate2,258 1,644 3,902 
Commercial real estate749 3,117 3,866 
Commercial1 844 845 
Consumer221 1 222 
Total$3,376 $5,606 $8,982 
Schedule of financing receivable credit quality indicators
The following table provides information on loan risk ratings as of September 30, 2023 and gross write-offs during the nine months ended September 30, 2023.
Term Loans by Origination YearRevolving LoansRevolving Converted to Term LoansTotal
(Dollars in thousands)Prior20192020202120222023
September 30, 2023
Construction
Pass$27,243 $14,732 $29,531 $40,493 $135,418 $72,852 $8,331 $— $328,600 
Substandard138 — — 12 — — — — 150 
Total$27,381 $14,732 $29,531 $40,505 $135,418 $72,852 $8,331 $— $328,750 
Gross Charge-offs$— $— $— $— $— $— $— $— $— 
Residential real estate
Pass$330,183 $55,088 $107,259 $248,445 $355,912 $218,563 $116,868 $876 $1,433,194 
Special Mention41 259 — — — — 192 — 492 
Substandard5,320 — — — — — 458 — 5,778 
Total$335,544 $55,347 $107,259 $248,445 $355,912 $218,563 $117,518 $876 $1,439,464 
Gross Charge-offs$— $— $— $— $— $— $— $— $— 
Commercial real estate
Pass$683,984 $192,789 $302,597 $430,908 $430,214 $195,260 $16,420 $2,202 $2,254,374 
Special Mention13,931 141 — 6,184 4,475 — — 426 25,157 
Substandard1,498 1,937 — 555 — — — — 3,990 
Total$699,413 $194,867 $302,597 $437,647 $434,689 $195,260 $16,420 $2,628 $2,283,521 
Gross Charge-offs$(513)$— $(814)$— $— $— $— $— $(1,327)
Commercial
Pass$25,796 $14,254 $15,332 $43,209 $40,337 $24,582 $62,679 $1,641 $227,830 
Special Mention137 — — 440 — — 75 243 895 
Substandard1 186 — — 23 — 493 46 749 
Total$25,934 $14,440 $15,332 $43,649 $40,360 $24,582 $63,247 $1,930 $229,474 
Gross Charge-offs$— $— $— $— $— $— $— $— $— 
Consumer
Pass$682 $1,258 $15,574 $83,768 $150,126 $78,067 $713 $— $330,188 
Special Mention— — — — — — 1 — 1 
Substandard— 26 — 117 78 — 1 — 222 
Total$682 $1,284 $15,574 $83,885 $150,204 $78,067 $715 $— $330,411 
Gross Charge-offs$(45)$— $(16)$(3)$(1)$(328)$(1)$(5)$(399)
Total
Pass$1,067,888 $278,121 $470,293 $846,823 $1,112,007 $589,324 $205,011 $4,719 $4,574,186 
Special Mention14,109 400 — 6,624 4,475 — 268 669 26,545 
Substandard6,957 2,149 — 684 101 — 952 46 10,889 
Total loans by risk category$1,088,954 $280,670 $470,293 $854,131 $1,116,583 $589,324 $206,231 $5,434 $4,611,620 
Total gross charge-offs$(558)$— $(830)$(3)$(1)$(328)$(1)$(5)$(1,726)
Term Loans by Origination YearRevolving LoansRevolving Converted to Term LoansTotal
(Dollars in thousands)Prior20192020202120222023
September 30, 2023
Credit Cards
Performing$— $— $— $— $— $— $6,099 $— $6,099 
Non-Performing— — — — — — — — — 
Total$— $— $— $— $— $— $6,099 $— $6,099 
Gross Charge-offs$— $— $— $— $— $— $(60)$— $(60)
Total loans evaluated by performing status$— $— $— $— $— $— $6,099 $— $6,099 
Total gross charge-offs$— $— $— $— $— $— $(60)$— $(60)
Total Recorded Investment$1,088,954 $280,670 $470,293 $854,131 $1,116,583 $589,324 $212,330 $5,434 $4,617,719 
The following tables provide information on loan risk ratings as of December 31, 2022.
(Dollars in thousands)
Pass/Performing (1)
PassSpecial MentionSubstandardDoubtfulPCITotal
December 31, 2022
Construction$231,160 $14,212 $— $297 $— $650 $246,319 
Residential real estate761,405 32,467 1,239 1,430 — 13,956 810,497 
Commercial real estate929,501 121,711 1,814 517 — 11,866 1,065,409 
Commercial131,084 15,958 484 174 — 156 147,856 
Consumer285,786 196 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 September 30, 2023 and December 31, 2022.
(Dollars in thousands)
30‑59 days past due
60‑89 days past due
90 days past due and still accruing90 days past due and not accruingTotal
past due		Current Non-accrual
Current Accrual Loans (1)
Total
September 30, 2023
Construction$1,035 $— $65 $147 $1,247 $— $327,503 $328,750 
Residential real estate3,036 250 871 1,669 5,826 1,644 1,431,994 1,439,464 
Commercial real estate785 445 — 749 1,979 3,117 2,278,425 2,283,521 
Commercial103 — — — 103 844 228,527 229,474 
Consumer593 2,744 1,160 214 4,711 1 325,699 330,411 
Credit Cards61 41 53 — 155 — 5,944 6,099 
Total$5,613 $3,480 $2,149 $2,779 $14,021 $5,606 $4,598,092 $4,617,719 
Percent of total loans0.1 %0.1 %— %— %0.3 %0.1 %99.6 %100.0 %
(1)Includes loans measured at fair value of $9.3 million at September 30, 2023.
Accruing 
(Dollars in thousands)
Current (1)
30‑59 days past due
60‑89 days past due
90 days or more past due
Total
past due		Non-accrualPCITotal
December 31, 2022
Construction$239,990 $4,343 $1,015 $24 $5,382 $297 $650 $246,319 
Residential real estate787,070 6,214 891 1,107 8,212 1,259 13,956 810,497 
Commercial real estate1,052,314 369 — 710 1,079 150 11,866 1,065,409 
Commercial147,511 15 — — 15 174 156 147,856 
Consumer285,750 223 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 loans98.3 %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
The following tables provide a summary of the activity in the ACL allocated by loan class for the three and nine months ended September 30, 2023 and September 30, 2022. Allocation of a portion of the allowance to one loan class does not preclude its availability to absorb losses in other loan classes.
(Dollars in thousands)Beginning Balance
Merger Adjustments (2)
Charge-offsRecoveriesNet (charge-offs) recoveriesProvisionsEnding Balance
For three months ended September 30, 2023
Construction$2,386 $3 $— $3 $3 $1,439 $3,831 
Residential real estate9,151 215 — 3 3 9,806 19,175 
Commercial real estate10,267 985 (1,327)— (1,327)12,875 22,800 
Commercial1,956 278 — 2 2 2,101 4,337 
Consumer (1)
5,254 14 (115)45 (70)1,658 6,856 
Credit Card— 18 (60)— (60)94 52 
Total$29,014 $1,513 $(1,502)$53 $(1,449)$27,973 $57,051 
(1)Gross charge-offs of consumer loans for the three months ended September 30, 2023 included $95,000 of demand deposit overdrafts.
(2)Merger adjustments consist of gross-up for acquired PCD loans in the TCFC merger.
(Dollars in thousands)Beginning BalanceCharge-offsRecoveriesNet (charge-offs) recoveriesProvisionsEnding Balance
For three months ended September 30, 2022
Construction$3,345 $— $2 $2 $(315)$3,032 
Residential real estate2,778 — 12 12 218 3,008 
Commercial real estate4,441 — 243 243 325 5,009 
Commercial1,681 (202)60 (142)368 1,907 
Consumer3,238 — 4 4 79 3,321 
Total$15,483 $(202)$321 $119 $675 $16,277 
(Dollars in thousands)Beginning BalanceImpact of ASC326 Adoption
Merger Adjustments (2)
Charge-offsRecoveriesNet (charge-offs) recoveriesProvisionsEnding Balance
For nine months ended September 30, 2023
Construction$2,973 $1,222 $3 $— $10 $10 $(377)$3,831 
Residential real estate2,622 4,974 215 — 37 37 11,327 19,175 
Commercial real estate4,899 3,742 985 (1,327)— (1,327)14,501 22,800 
Commercial1,652 401 278 — 10 10 1,996 4,337 
Consumer (1)
4,497 452 14 (399)210 (189)2,082 6,856 
Credit Card— — 18 (60)— (60)94 52 
Total$16,643 $10,791 $1,513 $(1,786)$267 $(1,519)$29,623 $57,051 
(1)Gross charge-offs of consumer loans for the nine months ended September 30, 2023 included $0.4 million of demand deposit overdrafts.
(2)Merger adjustments consist of gross-up for acquired PCD loans in the TCFC merger.
(Dollars in thousands)Beginning BalanceCharge-offsRecoveriesNet (charge-offs) recoveriesProvisionsEnding Balance
For nine months ended September 30, 2022
Construction$2,454 $— $9 $9 $569 $3,032 
Residential real estate2,858 (4)131 127 23 3,008 
Commercial real estate4,598 (6)948 942 (531)5,009 
Commercial2,070 (416)200 (216)53 1,907 
Consumer1,964 (31)27 (4)1,361 3,321 
Total$13,944 $(457)$1,315 $858 $1,475 $16,277 
Schedule of collateral-dependent loans
The following table presents the amortized cost basis of collateral-dependent loans by loan portfolio segment.
September 30, 2023
(Dollars in thousands)Real Estate CollateralOther CollateralTotal
Construction$250 $— $250 
Residential real estate7,620 — 7,620 
Commercial real estate5,411 — 5,411 
Commercial— 1,100 1,100 
Consumer— 1,381 1,381 
Total$13,281 $2,481 $15,762 
Schedule of loans acquired from severn
The following table provides information about all loans acquired from Severn as of December 31, 2022.
December 31, 2022
(Dollars in thousands)Acquired Loans - Purchased Credit ImpairedAcquired Loans - Purchased PerformingAcquired Loans - Total
Outstanding principal balance$29,620 $349,262 $378,882 
Carrying amount
Construction$650 $18,761 $19,411 
Residential real estate13,956 116,118 130,074 
Commercial real estate11,866 174,278 186,144 
Commercial156 35,687 35,843 
Consumer14 697 711 
Total loans$26,642 $345,541 $372,183 
Schedule of PCI loans acquired
The following table presents a summary of the change in the accretable yield on PCI loans acquired from Severn.
(Dollars in thousands)Nine Months Ended September 30, 2022
Accretable yield, beginning of period$5,367 
Accretion(1,195)
Reclassification of nonaccretable difference due to improvement in expected cash flows399 
Other changes, net287 
Accretable yield, end of period$4,858 
Schedule of allowance for credit losses on financing receivables
The following tables include impairment information relating to loans and the ACL on loans as of December 31, 2022.
(Dollars in thousands)Ending balance:
Individually evaluated for impairment		Ending balance:
Collectively evaluated for impairment		Acquired Loans- PCI
Total (1)
December 31, 2022
Loan Receivables:
Construction$331 $236,901 $650 $237,882 
Residential real estate5,081 791,460 13,956 810,497 
Commercial real estate2,540 1,051,003 11,866 1,065,409 
Commercial174 147,526 156 147,856 
Consumer28285,984 14286,026 
Total$8,154 $2,512,874 $26,642 $2,547,670 
Allowance for credit losses on loans:Allocated to loans individually evaluated for impairmentAllocated to loans collectively evaluated for impairmentTotal
Construction$— $2,973 $2,973 
Residential real estate127 2,495 2,622 
Commercial real estate— 4,899 4,899 
Commercial— 1,652 1,652 
Consumer— 4,497 4,497 
Total$127 $16,516 $16,643 
(1)Excludes loans measured at fair value of $8.4 million at December 31, 2022.
Schedule of impaired financing receivables The difference between the unpaid principal balance and the recorded investment is the amount of partial charge-offs that have been taken and interest paid on nonaccrual loans that has been applied to principal.
Unpaid principal balanceRecorded investment with no allowanceRecorded investment with an allowanceRelated allowanceSeptember 30, 2022
(Dollars in thousands)Quarter-to-date average recorded investmentYear-to-date average recorded investmentInterest income recognized
December 31, 2022
Impaired nonaccrual loans:
Construction$297 $297 $— $— $297 $314 $— 
Residential real estate1,363 1,259 — — 1,639 1,534 — 
Commercial real estate159 150 — — 466 704 — 
Commercial 359 174 — — 197 242 — 
Consumer29 28 — — 40 48 — 
Total$2,207 $1,908 $— $— $2,639 $2,842 $— 
Impaired accruing TDRs:
Construction$10 $10 $— $— $14 $18 $1 
Residential real estate2,849 1,176 1,539 127 2,750 3,064 83 
Commercial real estate1,680 1,680 — — 1,830 2,231 48 
Commercial — — — — — — — 
Consumer— — — — — 6 — 
Total$4,539 $2,866 $1,539 $127 $4,594 $5,319 $132 
Other impaired accruing loans:
Construction$24 $24 $— $— $304 $190 $6 
Residential real estate1,107 1,107 — — 745 259 3 
Commercial real estate710 710 — — 537 493 7 
Commercial — — — — 13 7 1 
Consumer— — — — — 13 — 
Total$1,841 $1,841 $— $— $1,599 $962 $17 
Total impaired loans:
Construction$331 $331 $— $— $615 $522 $7 
Residential real estate5,319 3,542 1,539 127 5,134 4,857 86 
Commercial real estate2,549 2,540 — — 2,833 3,428 55 
Commercial 359 174 — — 210 249 1 
Consumer29 28 — — 40 67 — 
Total$8,587 $6,615 $1,539 $127 $8,832 $9,123 $149