Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2021

Financing Receivable, Allowance for Credit Loss [Line Items]

Schedule of Composition of Loan Portfolio

The following table summarizes the composition of our loan portfolio. Total gross loans are recorded net of deferred loan fees and costs, which totaled $4.2 million as of June 30, 2021 and December 31, 2020.

	June 30, 2021						December 31, 2020
(dollars in thousands)	Amount			% of Total			Amount			% of Total
Commercial
Owner occupied RE	$	452,130			20.1	%	$	433,320			20.2	%
Non-owner occupied RE		600,094			26.6	%		585,269			27.3	%
Construction		60,786			2.7	%		61,467			2.9	%
Business		307,933			13.7	%		307,599			14.4	%
Total commercial loans		1,420,943			63.1	%		1,387,655			64.8	%
Consumer
Real estate		605,026			26.8	%		536,311			25.0	%
Home equity		149,789			6.7	%		156,957			7.3	%
Construction		48,077			2.1	%		40,525			1.9	%
Other		30,300			1.3	%		21,419			1.0	%
Total consumer loans		833,192			36.9	%		755,212			35.2	%
Total gross loans, net of deferred fees		2,254,135			100.0	%		2,142,867			100.0	%
Less—allowance for loan losses		(41,912	)					(44,149	)
Total loans, net	$	2,212,223					$	2,098,718

Schedule of Loan Maturity Distribution by Type and Related Interest Rate

The information in the following tables summarizes the loan maturity distribution by type and related interest rate characteristics based on the contractual maturities of individual loans, including loans which may be subject to renewal at their contractual maturity. Renewal of such loans is subject to review and credit approval, as well as modification of terms upon maturity. Actual repayments of loans may differ from the maturities reflected below, because borrowers have the right to prepay obligations with or without prepayment penalties.

	June 30, 2021
			After one
	One year		but within		After five
(dollars in thousands)	or less		five years		years		Total
Commercial
Owner occupied RE	$	17,627		133,316		301,187		452,130
Non-owner occupied RE		34,352		324,514		241,228		600,094
Construction		18,887		15,966		25,933		60,786
Business		70,728		140,607		96,598		307,933
Total commercial loans		141,594		614,403		664,946		1,420,943
Consumer
Real estate		11,848		51,828		541,350		605,026
Home equity		3,065		22,918		123,806		149,789
Construction		2,688		1,531		43,858		48,077
Other		8,882		17,394		4,024		30,300
Total consumer loans		26,483		93,671		713,038		833,192
Total gross loans, net of deferred fees	$	168,077		708,074		1,377,984		2,254,135
Loans maturing after one year with:
Fixed interest rates							$	1,741,543
Floating interest rates								344,515

13

	December 31, 2020
			After one
	One year		but within		After five
(dollars in thousands)	or less		five years		years		Total
Commercial
Owner occupied RE	$	22,232		136,031		275,057		433,320
Non-owner occupied RE		39,359		335,249		210,661		585,269
Construction		21,824		15,785		23,858		61,467
Business		76,662		140,959		89,978		307,599
Total commercial loans		160,077		628,024		599,554		1,387,655
Consumer
Real estate		14,205		54,863		467,243		536,311
Home equity		4,824		23,835		128,298		156,957
Construction		1,629		1,234		37,662		40,525
Other		6,438		11,413		3,568		21,419
Total consumer		27,096		91,345		636,771		755,212
Total gross loan, net of deferred fees	$	187,173		719,369		1,236,325		2,142,867
Loans maturing after one year with:
Fixed interest rates							$	1,590,171
Floating interest rates								365,523

Schedule of Nonperforming Assets, Including Nonaccruing TDRs

Following is a summary of our nonperforming assets, including nonaccruing TDRs.

(dollars in thousands)	June 30, 2021			December 31, 2020
Commercial
Owner occupied RE	$	-			-
Non-owner occupied RE		1,048			1,143
Construction		-			139
Business		37			195
Consumer
Real estate		2,372			2,536
Home equity		426			547
Construction		-			-
Other		-			-
Nonaccruing troubled debt restructurings		2,883			3,509
Total nonaccrual loans, including nonaccruing TDRs		6,766			8,069
Other real estate owned		366			1,169
Total nonperforming assets	$	7,132			9,238
Nonperforming assets as a percentage of:
Total assets		0.27	%		0.37	%
Gross loans		0.32	%		0.43	%
Total loans over 90 days past due	$	1,332			2,296
Loans over 90 days past due and still accruing		-			-
Accruing troubled debt restructurings		4,621			4,893

Schedule of Key Information for Impaired Loans

The table below summarizes key information for impaired loans. The Company’s impaired loans include loans on nonaccrual status and loans modified in a TDR, whether on accrual or nonaccrual status. These impaired loans may have estimated impairment which is included in the allowance for loan losses. The Company’s commercial and consumer impaired loans are evaluated individually to determine the related allowance for loan losses.

			June 30, 2021
			Recorded investment
					Impaired loans		Impaired loans
	Unpaid				with no related		with related		Related
	Principal		Impaired		allowance for		allowance for		allowance for
(dollars in thousands)	Balance		loans		loan losses		loan losses		loan losses
Commercial
Owner occupied RE	$	1,268		1,268		1,268		-		-
Non-owner occupied RE		3,163		2,013		996		1,017		303
Construction		-		-		-		-		-
Business		2,116		2,027		124		1,903		817
Total commercial		6,547		5,308		2,388		2,920		1,120
Consumer
Real estate		4,685		4,282		2,829		1,453		394
Home equity		1,883		1,668		1,610		58		58
Construction		-		-		-		-		-
Other		129		129		-		129		16
Total consumer		6,697		6,079		4,439		1,640		468
Total	$	13,244		11,387		6,828		4,560		1,588

			December 31, 2020
			Recorded investment
				Impaired loans		Impaired loans
	Unpaid			with no related		with related		Related
	Principal		Impaired	allowance for		allowance for		allowance for
(dollars in thousands)	Balance		loans	loan losses		loan losses		loan losses
Commercial
Owner occupied RE	$	1,753	1,649		1,497		152		76
Non-owner occupied RE		3,212	2,188		705		1,483		366
Construction		141	139		139		-		-
Business		2,892	2,449		279		2,170		897
Total commercial		7,998	6,425		2,620		3,805		1,339
Consumer
Real estate		4,362	4,031		3,108		923		190
Home equity		2,498	2,371		2,096		275		163
Construction		-	-		-		-		-
Other		135	135		-		135		17
Total consumer		6,995	6,537		5,204		1,333		370
Total	$	14,993	12,962		7,824		5,138		1,709

Schedule of Average Recorded Investment and Interest Income Recognized on Impaired Loans

The following table provides the average recorded investment in impaired loans and the amount of interest income recognized on impaired loans after impairment by portfolio segment and class.

	Three months ended June 30, 2021					Three months ended June 30, 2020
	Average		Recognized		Average		Recognized
	recorded		interest		recorded		interest
(dollars in thousands)	investment		income		investment		income
Commercial
Owner occupied RE	$	1,379		16		2,722		14
Non-owner occupied RE		2,073		32		6,078		39
Construction		68		-		-		-
Business		2,118		20		2,534		19
Total commercial		5,638		68		11,334		72
Consumer
Real estate		4,337		60		3,052		15
Home equity		1,679		18		2,287		5
Construction		-		-		-		-
Other		131		1		142		1
Total consumer		6,147		79		5,481		21
Total	$	11,785		147		16,815		93

	Six months ended					Six months ended				Year ended
	June 30, 2021					June 30, 2020				December 31, 2020
	Average		Recognized		Average		Recognized		Average		Recognized
	recorded		interest		recorded		interest		recorded		interest
(dollars in thousands)	investment		income		investment		income		investment		income
Commercial
Owner occupied RE	$	1,469		32		2,723		33		2,423		88
Non-owner occupied RE		2,111		94		6,098		102		4,217		221
Construction		91		2		-		-		56		6
Business		2,229		54		2,545		47		2,306		243
Total commercial		5,900		182		11,366		182		9,002		558
Consumer
Real estate		4,235		103		3,057		40		3,372		170
Home equity		1,910		34		2,288		17		2,128		5
Construction		-		-		-		-		-		-
Other		132		2		144		2		141		79
Total consumer		6,277		139		5,489		59		5,641		254
Total	$	12,177		321		16,855		241		14,643		812

Schedule of Allowance for Loan Losses by Commercial and Consumer Portfolio Segments

The following table summarizes the activity related to the allowance for loan losses by commercial and consumer portfolio segments:

	Three months ended June 30, 2021
	Commercial											Consumer
	Owner			Non-owner
	occupied			occupied								Real		Home
(dollars in thousands)	RE			RE			Construction		Business			Estate		equity			Construction		Other			Total
Balance, beginning of period	$	7,154			15,195			827		6,848			9,666		2,688			685		436			43,499
Provision for loan losses		(149	)		(2,096	)		124		(226	)		362		(129	)		68		146			(1,900	)
Loan charge-offs		-			-			-		-			-		-			-		(8	)		(8	)
Loan recoveries		94			124			-		100			-		3			-		-			321
Net loan charge-offs		94			124			-		100			-		3			-		(8	)		313
Balance, end of period	$	7,099			13,223			951		6,722			10,028		2,562			753		574			41,912
Net charge-offs (recoveries) to average loans   (annualized)																							(0.06	)%
Allowance for loan losses to gross loans																							1.86	%
Allowance for loan losses to nonperforming loans																							619.47	%

	Three months ended June 30, 2020
	Commercial										Consumer
	Owner		Non-owner
	occupied		occupied								Real		Home
(dollars in thousands)	RE		RE			Construction		Business			Estate		equity		Construction		Other		Total
Balance, beginning of period	$	4,005		5,794			694		4,714			4,606		1,896		415		338		22,462
Provision for loan losses		1,795		3,909			283		1,282			1,925		745		200		61		10,200
Loan charge-offs		-		(912	)		-		(170	)		-		-		-		-		(1,082	)
Loan recoveries		-		-			-		15			7		-		-		-		22
Net loan charge-offs		-		(912	)		-		(155	)		7		-		-		-		(1,060	)
Balance, end of period	$	5,800		8,791			977		5,841			6,538		2,641		615		399		31,602
Net charge-offs to average loans (annualized)																				0.24	%
Allowance for loan losses to gross   loans																				1.55	%
Allowance for loan losses to   nonperforming loans																				350.74	%

	Six months ended June 30, 2021
	Commercial											Consumer
	Owner			Non-owner
	occupied			occupied							Real			Home
(dollars in thousands)	RE			RE		Construction			Business		Estate			equity		Construction		Other			Total
Balance, beginning of period	$	8,145			12,049		1,154		7,845			10,453		3,249			747		507			44,149
Provision for loan losses		(1,140	)		1,050		(203	)	(1,011	)		(425	)	(552	)		6		75			(2,200	)
Loan charge-offs		-			-		-		(268	)		-		(139	)		-		(8	)		(415	)
Loan recoveries		94			124		-		156			-		4			-		-			378
Net loan charge-offs		94			124		-		(112	)		-		(135	)		-		(8	)		(37	)
Balance, end of period	$	7,099			13,223		951		6,722			10,028		2,562			753		574			41,912
Net charge-offs to average loans (annualized)																						0.00	%

	Six months ended June 30, 2020
	Commercial							Consumer
	Owner		Non-owner
	occupied		occupied					Real	Home
(dollars in thousands)	RE		RE		Construction	Business		Estate	equity		Construction		Other		Total
Balance, beginning of period	$	2,835	4,304		541	3,692		3,278		1,447		268	277			16,642
Provision for loan losses		2,965	5,620		436	2,288		3,251		1,126		347	167			16,200
Loan charge-offs		-	(1,133	)	-	(170	)	-		-		-	(45	)		(1,348	)
Loan recoveries		-	-		-	31		9		68		-	-			108
Net loan charge-offs		-	(1,133	)	-	(139	)	9		68		-	(45	)		(1,240	)
Balance, end of period	$	5,800	8,791		977	5,841		6,538		2,641		615	399			31,602
Net charge-offs to average loans (annualized)																0.12	%

Schedule of Allowance for Loan Losses and Recorded Investment in Loans by Impairment

The following table disaggregates the allowance for loan losses and recorded investment in loans by impairment methodology.

	June 30, 2021
	Allowance for loan losses				Recorded investment in loans
(dollars in thousands)	Commercial		Consumer	Total	Commercial	Consumer	Total
Individually evaluated	$	1,454	134	1,588	5,308	6,079	11,387
Collectively evaluated		26,536	13,788	40,324	1,415,635	827,113	2,242,748
Total	$	27,995	13,917	41,912	1,420,943	833,192	2,254,135

	December 31, 2020
	Allowance for loan losses				Recorded investment in loans
(dollars in thousands)	Commercial		Consumer	Total	Commercial	Consumer	Total
Individually evaluated	$	1,339	370	1,709	6,425	6,537	12,962
Collectively evaluated		27,826	14,614	42,440	1,381,230	748,675	2,129,905
Total	$	29,165	14,984	44,149	1,387,655	755,212	2,142,867

Consumer Loan [Member]

Financing Receivable, Allowance for Credit Loss [Line Items]

Summary of breakdown of outstanding loans by risk category

The tables below provide a breakdown of outstanding consumer loans by risk category.

	June 30, 2021
(dollars in thousands)	Real estate		Home equity		Construction		Other		Total
Pass	$	597,139		143,545		48,077		30,100		818,861
Special mention		3,465		3,773		-		152		7,390
Substandard		4,422		2,471		-		48		6,941
Doubtful		-		-		-		-		-
	$	605,026		149,789		48,077		30,300		833,192

	December 31, 2020
(dollars in thousands)	Real estate		Home equity		Construction		Other		Total
Pass	$	530,515		152,154		40,525		21,290		744,484
Special mention		1,968		1,005		-		91		3,064
Substandard		3,828		3,798		-		38		7,664
Doubtful		-		-		-		-		-
	$	536,311		156,957		40,525		21,419		755,212

Summary of outstanding commercial and consumer loans which include loans on nonaccrual by past due status

The following tables provide past due information for outstanding consumer loans and include loans on nonaccrual status as well as accruing TDRs.

	June 30, 2021
(dollars in thousands)	Real estate		Home equity		Construction		Other		Total
Current	$	603,357		148,875		48,077		30,300		830,609
30-59 days past due		522		438		-		-		960
60-89 days past due		537		286		-		-		823
Greater than 90 Days		610		190		-		-		800
	$	605,026		149,789		48,077		30,300		833,192

	December 31, 2020
(dollars in thousands)	Real estate		Home equity		Construction		Other		Total
Current	$	534,648		156,657		40,525		21,419		753,249
30-59 days past due		-		-		-		-		-
60-89 days past due		332		-		-		-		332
Greater than 90 Days		1,331		300		-		-		1,631
	$	536,311		156,957		40,525		21,419		755,212

Commercial Loan [Member]

Financing Receivable, Allowance for Credit Loss [Line Items]

Summary of breakdown of outstanding loans by risk category

The tables below provide a breakdown of outstanding commercial loans by risk category.

	June 30, 2021
	Owner		Non-owner
(dollars in thousands)	occupied RE		occupied RE		Construction		Business		Total
Pass	$	451,044		522,211		60,786		302,451		1,336,492
Special mention		780		48,970		-		1,317		51,067
Substandard		306		28,913		-		4,165		33,384
Doubtful		-		-		-		-		-
	$	452,130		600,094		60,786		307,933		1,420,943

	December 31, 2020
	Owner		Non-owner
(dollars in thousands)	occupied RE		occupied RE		Construction		Business		Total
Pass	$	430,291		576,095		61,328		301,838		1,369,552
Special mention		624		587		-		1,703		2,914
Substandard		2,405		8,587		139		4,058		15,189
Doubtful		-		-		-		-		-
	$	433,320		585,269		61,467		307,599		1,387,655

Summary of outstanding commercial and consumer loans which include loans on nonaccrual by past due status

The following tables provide past due information for outstanding commercial loans and include loans on nonaccrual status as well as accruing TDRs.

	June 30, 2021
	Owner		Non-owner
(dollars in thousands)	occupied RE		occupied RE		Construction		Business		Total
Current	$	452,130		599,598		60,786		307,862		1,420,376
30-59 days past due		-		-		-		35		35
60-89 days past due		-		-		-		-		-
Greater than 90 Days		-		496		-		36		532
	$	452,130		600,094		60,786		307,933		1,420,943

	December 31, 2020
	Owner		Non-owner
(dollars in thousands)	occupied RE		occupied RE		Construction		Business		Total
Current	$	432,711		584,565		61,467		307,261		1,386,004
30-59 days past due		403		282		-		35		720
60-89 days past due		-		-		-		266		266
Greater than 90 Days		206		422		-		37		665
	$	433,320		585,269		61,467		307,599		1,387,655