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Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable The following table presents the classifications of loans as of the dates indicated.
September 30, 2020December 31, 2019
Amount
Percent
Amount
Percent
(Dollars in thousands)
Real Estate:
Residential
$343,955 32.7 %$347,766 36.6 %
Commercial
353,904 33.7 351,360 36.9 
Construction
69,178 6.6 35,605 3.7 
Commercial and Industrial
144,315 13.7 85,586 9.0 
Consumer
117,364 11.2 113,637 11.9 
Other
22,169 2.1 18,542 1.9 
Total Loans
1,050,885 100.0 %952,496 100.0 %
Allowance for Loan Losses
(13,780)(9,867)
Loans, Net
$1,037,105 $942,629 
Financing Receivable Credit Quality Indicators
The following table presents loans summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of the dates indicated. At September 30, 2020 and December 31, 2019, there were no loans in the criticized category of Loss within the internal risk rating system.
September 30, 2020
Pass
Special
Mention
Substandard
Doubtful
Total
(Dollars in Thousands)
Real Estate:
Residential
$340,421 $1,045 $2,489 $— $343,955 
Commercial
311,125 29,383 13,396 — 353,904 
Construction
65,158 3,379 641 — 69,178 
Commercial and Industrial
137,871 4,197 1,614 633 144,315 
Consumer
117,315 — 49 — 117,364 
Other
22,089 80 — — 22,169 
Total Loans
$993,979 $38,084 $18,189 $633 $1,050,885 
December 31, 2019
Pass
Special
Mention
Substandard
Doubtful
Total
(Dollars in Thousands)
Real Estate:
Residential
$343,851 $1,997 $1,918 $— $347,766 
Commercial
335,436 12,260 3,664 — 351,360 
Construction
33,342 2,263 — — 35,605 
Commercial and Industrial
75,201 7,975 1,691 719 85,586 
Consumer
113,527 — 110 — 113,637 
Other
18,452 90 — — 18,542 
Total Loans
$919,809 $24,585 $7,383 $719 $952,496 
Financing Receivable, Past Due
The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of the dates indicated.
September 30, 2020
Loans
Current
30-59
Days
Past Due
60-89
Days
Past Due
90 Days
Or More
Past Due
Total
Past Due
Non-
Accrual
Total
Loans
(Dollars in Thousands)
Real Estate:
Residential
$341,775 $281 $22 $— $303 $1,877 $343,955 
Commercial
345,772 — — — — 8,132 353,904 
Construction
69,178 — — — — — 69,178 
Commercial and Industrial
142,286 — — — — 2,029 144,315 
Consumer
116,826 452 37 — 489 49 117,364 
Other
22,169 — — — — — 22,169 
Total Loans
$1,038,006 $733 $59 $— $792 $12,087 $1,050,885 
December 31, 2019
Loans
Current
30-59
Days
Past Due
60-89
Days
Past Due
90 Days
Or More
Past Due
Total
Past Due
Non-
Accrual
Total
Loans
(Dollars in Thousands)
Real Estate:
Residential
$342,010 $3,462 $281 $196 $3,939 $1,817 $347,766 
Commercial
351,104 22 — — 22 234 351,360 
Construction
35,605 — — — — — 35,605 
Commercial and Industrial
84,280 388 178 — 566 740 85,586 
Consumer
112,438 923 140 26 1,089 110 113,637 
Other
18,542 — — — — — 18,542 
Total Loans
$943,979 $4,795 $599 $222 $5,616 $2,901 $952,496 
Financing Receivable, Nonaccrual
The following table sets forth the amounts and categories of nonperforming assets at the dates indicated. Included in nonperforming loans and assets are troubled debt restructurings (“TDRs”), which are loans whose contractual terms have been restructured in a manner which grants a concession to a borrower experiencing financial difficulties. Nonaccrual TDRs are included in their specific loan category in the nonaccrual loans section. Nonperforming loans do not include loans modified under Section 4013 of the CARES Act and interagency guidance as further explained below.
September 30,
2020		December 31,
2019
(Dollars in Thousands)
Nonaccrual Loans:
Real Estate:
Residential
$1,877 $1,817 
Commercial
8,132 234 
Commercial and Industrial
2,029 740 
Consumer
49 110 
Total Nonaccrual Loans
12,087 2,901 
Accruing Loans Past Due 90 Days or More:
Real Estate:
Residential
— 196 
Consumer
— 26 
Total Accruing Loans Past Due 90 Days or More
— 222 
Total Nonaccrual Loans and Accruing Loans Past Due 90 Days or More
12,087 3,123 
Troubled Debt Restructurings, Accruing:
Real Estate
Residential
660 511 
Commercial
2,162 1,648 
Commercial and Industrial
96 100 
Total Troubled Debt Restructurings, Accruing
2,918 2,259 
Total Nonperforming Loans
15,005 5,382 
Other Real Estate Owned:
Residential
14 41 
Commercial
208 192 
Total Other Real Estate Owned
222 233 
Total Nonperforming Assets
$15,227 $5,615 
Nonperforming Loans to Total Loans
1.43 %0.57 %
Nonperforming Assets to Total Assets
1.09 0.42 
Financing Receivable, Loan Forbearance
The following table provides details of loans in forbearance and the forbearance end dates as of the dates indicated.
September 30, 2020June 30, 2020
Number
of
Loans		Amount% of PortfolioNumber
of
Loans		Amount% of Portfolio
(Dollars in thousands)
Real Estate:
Residential11 1,242 0.4 %163 23,653 6.9 %
Commercial9 13,885 3.9 %111 105,117 30.0 %
Construction1 7,162 10.4 %6 15,518 26.6 %
Commercial and Industrial1 122 0.1 %76 15,697 10.5 %
Consumer12 295 0.3 %170 3,447 2.9 %
Other— — — %1 2,504 11.2 %
Total Loans in Forbearance34 $22,706 2.2 %527 $165,936 15.9 %
Financing Receivable, Troubled Debt Restructuring
The following tables present information at the time of modification related to loans modified in a TDR during the three and nine months ended September 30, 2020 and 2019.
Three Months Ended September 30, 2020
Number
of
Contracts
Pre-
Modification
Outstanding
Recorded
Investment
Post-
Modification
Outstanding
Recorded
Investment
Related
Allowance
(Dollars in thousands)
Real Estate:
Commercial1 $504 $519 $— 
Commercial and Industrial1 38 38 — 
Total2 $542 $557 $— 

Nine Months Ended September 30, 2020
Number
of
Contracts
Pre-
Modification
Outstanding
Recorded
Investment
Post-
Modification
Outstanding
Recorded
Investment
Related
Allowance
(Dollars in thousands)
Real Estate:
Residential
1 $234 $234 $— 
Commercial1 504 519 — 
Commercial and Industrial1 38 38 — 
Total3 $776 $791 $— 

Three Months Ended June 30, 2019
Number of ContractsPre- Modification Outstanding Recorded InvestmentPost- Modification Outstanding Recorded InvestmentRelated Allowance
(Dollars in thousands)
Real Estate:
Residential1 $10 $10 $— 
Total1 $10 10 $— 
Nine Months Ended September 30, 2019
Number
of
Contracts
Pre-
Modification
Outstanding
Recorded
Investment
Post-
Modification
Outstanding
Recorded
Investment
Related
Allowance
(Dollars in thousands)
Real Estate:
Residential2 $71 $71 $— 
Commercial and Industrial1 114 114 — 
Total3 $185 $185 $— 
Impaired Financing Receivables
The following table presents a summary of the loans considered to be impaired as of the dates indicated.
September 30, 2020
Recorded
Investment
Related
Allowance
Unpaid
Principal
Balance
Average
Recorded
Investment
Interest
Income
Recognized
(Dollars in thousands)
With No Related Allowance Recorded:
Real Estate:
Residential
$1,216 $— $1,220 $1,220 $34 
Commercial
20,896 — 20,916 25,193 811 
Construction
641 — 641 766 21 
Commercial and Industrial
881 — 1,069 936 6 
Total With No Related Allowance Recorded
$23,634 $— $23,846 $28,115 $872 
With A Related Allowance Recorded:
Real Estate:
Commercial
$9,498 $2,248 $9,528 $9,610 $291 
Commercial and Industrial
1,528 607 1,528 1,609 45 
Total With A Related Allowance Recorded
$11,026 $2,855 $11,056 $11,219 $336 
Total Impaired Loans:
Real Estate:
Residential
$1,216 $— $1,220 $1,220 $34 
Commercial
30,394 2,248 30,444 34,803 1,102 
Construction
641 — 641 766 21 
Commercial and Industrial
2,409 607 2,597 2,545 51 
Total Impaired Loans
$34,660 $2,855 $34,902 $39,334 $1,208 
December 31, 2019
Recorded
Investment
Related
Allowance
Unpaid
Principal
Balance
Average
Recorded
Investment
Interest
Income
Recognized
(Dollars in thousands)
With No Related Allowance Recorded:
Real Estate:
Residential
$549 $— $553 $494 $20 
Commercial
3,058 — 3,077 3,335 177 
Commercial and Industrial
133 — 135 156 6 
Total With No Related Allowance Recorded
$3,740 $— $3,765 $3,985 $203 
With A Related Allowance Recorded:
Real Estate:
Commercial
$1,646 $274 $1,646 $1,702 $81 
Commercial and Industrial
2,378 610 2,529 2,448 113 
Total With A Related Allowance Recorded
$4,024 $884 $4,175 $4,150 $194 
Total Impaired Loans
Real Estate:
Residential
$549 $— $553 $494 $20 
Commercial
4,704 274 4,723 5,037 258 
Commercial and Industrial
2,511 610 2,664 2,604 119 
Total Impaired Loans
$7,764 $884 $7,940 $8,135 $397 
Financing Receivable, Allowance for Credit Loss
The following tables present the activity in the allowance for loan losses (“ALLL”) summarized by major classifications and segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for potential impairment at the dates and for the periods indicated.
Real
Estate
Residential
Real
Estate
Commercial
Real
Estate
Construction
Commercial
and
Industrial
Consumer
Other
Unallocated
Total
(Dollars in thousands)
June 30, 2020$2,688 $5,160 $820 $1,566 $1,714 $— $700 $12,648 
Charge-offs
(11)— — — (103)— — (114)
Recoveries
1 1 — 6 38 — — 46 
Provision
(506)1,711 71 170 (290)— 44 1,200 
September 30, 2020$2,172 $6,872 $891 $1,742 $1,359 $— $744 $13,780 
Real
Estate
Residential
Real
Estate
Commercial
Real
Estate
Construction
Commercial
and
Industrial
Consumer
Other
Unallocated
Total
(Dollars in thousands)
December 31, 2019$2,023 $3,210 $285 $2,412 $1,417 $— $520 $9,867 
Charge-offs
(36)— — — (239)— — (275)
Recoveries
5 28 — 21 134 — — 188 
Provision
180 3,634 606 (691)47 — 224 4,000 
September 30, 2020$2,172 $6,872 $891 $1,742 $1,359 $— $744 $13,780 
September 30, 2020
Real
Estate
Residential
Real
Estate
Commercial
Real
Estate
Construction
Commercial
and
Industrial
Consumer
Other
Unallocated
Total
(Dollars in thousands)
Individually Evaluated for Impairment
$— $2,248 $— $607 $— $— $— $2,855 
Collectively Evaluated for Potential Impairment
$2,172 $4,624 $891 $1,135 $1,359 $— $744 $10,925 
December 31, 2019
Real
Estate
Residential
Real
Estate
Commercial
Real
Estate
Construction
Commercial
and
Industrial
Consumer
Other
Unallocated
Total
(Dollars in thousands)
Individually Evaluated for Impairment
$— $274 $— $610 $— $— $— $884 
Collectively Evaluated for Potential Impairment
$2,023 $2,936 $285 $1,802 $1,417 $— $520 $8,983 
Real
Estate
Residential
Real
Estate
Commercial
Real
Estate
Construction
Commercial
and
Industrial
Consumer
Other
Unallocated
Total
(Dollars in thousands)
June 30, 2019$1,096 $3,446 $488 $2,718 $1,500 $— $443 $9,691 
Charge-offs
(28)— — (16)(165)— — (209)
Recoveries
1 35 — 5 52 — — 93 
Provision
582 (508)49 (278)76 — 254 175 
September 30, 2019$1,651 $2,973 $537 $2,429 $1,463 $— $697 $9,750 
Real
Estate
Residential
Real
Estate
Commercial
Real
Estate
Construction
Commercial
and
Industrial
Consumer
Other
Unallocated
Total
(Dollars in thousands)
December 31, 2018$1,050 $2,693 $395 $2,807 $2,027 $— $586 $9,558 
Charge-offs
(71)— — (16)(451)— — (538)
Recoveries
10 56 — 7 107 — — 180 
Provision
662 224 142 (369)(220)— 111 550 
September 30, 2019$1,651 $2,973 $537 $2,429 $1,463 $— $697 $9,750 
September 30, 2019
Real
Estate
Residential
Real
Estate
Commercial
Real
Estate
Construction
Commercial
and
Industrial
Consumer
Other
Unallocated
Total
(Dollars in thousands)
Individually Evaluated for Impairment
$— $300 $— $503 $— $— $— $803 
Collectively Evaluated for Potential Impairment
$1,651 $2,673 $537 $1,926 $1,463 $— $697 $8,947 
The following table presents the major classifications of loans summarized by individually evaluated for impairment and collectively evaluated for potential impairment as of the dates indicated.
September 30, 2020
Real
Estate
Residential
Real
Estate
Commercial
Real
Estate
Construction
Commercial
and
Industrial
Consumer
Other
Total
(Dollars in thousands)
Individually Evaluated for Impairment
$1,216 $30,394 $641 $2,409 $— $— $34,660 
Collectively Evaluated for Potential Impairment
342,739 323,510 68,537 141,906 117,364 22,169 1,016,225 
Total Loans
$343,955 $353,904 $69,178 $144,315 $117,364 $22,169 $1,050,885 
At September 30, 2020, commercial and industrial contains $71.0 million of PPP loans collectively evaluated for potential impairment. No allowance for loan loss was allocated to the PPP loan portfolio due to the Bank complying with the lender obligations that ensure SBA guarantee.
December 31, 2019
Real
Estate
Residential
Real
Estate
Commercial
Real
Estate
Construction
Commercial
and
Industrial
Consumer
Other
Total
(Dollars in thousands)
Individually Evaluated for Impairment
$549 $4,704 $— $2,511 $— $— $7,764 
Collectively Evaluated for Potential Impairment
347,217 346,656 35,605 83,075 113,637 18,542 944,732 
Total Loans$347,766 $351,360 $35,605 $85,586 $113,637 $18,542 $952,496 
Schedule of Accretable Discount on Loans Acquired at Fair Value
The following table presents changes in the accretable discount on the loans acquired at fair value at the dates indicated.
Accretable Discount
(Dollars in Thousands)
December 31, 2019$1,628 
Accretable Yield
(293)
September 30, 2020$1,335