Allowance for Loan Losses (the Allowance) (Tables)

3 Months Ended

Mar. 31, 2020

Allowance for Loan Losses (the Allowance)

Roll-forward of allowance for loan and lease losses by portfolio segment

	Balance,					Balance,
(dollars in thousands)	December 31, 2019		Charge-offs	Recoveries	Provision	March 31, 2020
Commercial mortgage	$	3,426	—	—	686	4,112
Home Equity lines and loans		342	—	1	141	484
Residential mortgage		179	—	2	38	219
Construction		2,362	—	—	19	2,381
Commercial and industrial		2,684	—	29	456	3,169
Small business loans		509	—	—	216	725
Consumer		6	—	1	(3)	4
Leases		5	—	—	(1)	4
Total	$	9,513	—	33	1,552	11,098

	Balance,					Balance,
(dollars in thousands)	December 31, 2018		Charge-offs	Recoveries	Provision	March 31, 2019
Commercial mortgage	$	3,209	—	3	(49)	3,163
Home Equity lines and loans		323	—	3	15	341
Residential mortgage		191	—	—	21	212
Construction		1,627	—	—	175	1,802
Commercial and industrial		2,612	—	97	51	2,760
Small business loans		78	—	—	8	86
Consumer		3	—	1	—	4
Leases		10	—	—	(2)	8
Total	$	8,053	—	104	219	8,376

Schedule of allocation of the allowance for loan and lease losses

	Allowance on loans and leases				Carrying value of loans and leases
	Individually		Collectively		Individually		Collectively
March 31, 2020	evaluated		evaluated		evaluated		evaluated
(dollars in thousands)	for impairment		for impairment	Total	for impairment		for impairment	Total
Commercial mortgage	$	—	4,112	4,112	$	2,117	389,211	391,328
Home Equity lines and loans		36	448	484		761	78,003	78,764
Residential mortgage		—	219	219		3,804	38,297	42,101
Construction		—	2,381	2,381		1,231	174,133	175,364
Commercial and industrial		21	3,148	3,169		1,015	291,408	292,423
Small business loans		—	725	725		228	31,545	31,773
Consumer		—	4	4		—	570	570
Leases		—	4	4		—	559	559
Total	$	57	11,041	11,098	$	9,156	1,003,726	1,012,882	(1)

	Allowance on loans and leases				Carrying value of loans and leases
	Individually		Collectively		Individually		Collectively
December 31, 2019	evaluated		evaluated		evaluated		evaluated
(dollars in thousands)	for impairment		for impairment	Total	for impairment		for impairment	Total
Commercial mortgage	$	—	3,426	3,426	$	2,138	360,452	362,590
Home Equity lines and loans		46	296	342		536	81,047	81,583
Residential mortgage		—	179	179		854	42,265	43,119
Construction		—	2,362	2,362		1,247	170,797	172,044
Commercial and industrial		27	2,657	2,684		1,288	272,013	273,301
Small business loans		63	446	509		1,244	20,372	21,616
Consumer		—	6	6		—	1,003	1,003
Leases		—	5	5		—	697	697
Total	$	136	9,377	9,513	$	7,307	948,646	955,953	(1)

(1) Excludes deferred fees and loans carried at fair value.

Schedule of carrying value of loans and leases by portfolio segment based on the credit quality indicators

March 31, 2020			Special
(dollars in thousands)	Pass		mention	Substandard	Doubtful	Total
Commercial mortgage	$	381,035	7,278	3,015	—	391,328
Home equity lines and loans		78,088	—	676	—	78,764
Construction		174,158	1,206	—	—	175,364
Commercial and industrial		270,780	9,779	11,864	—	292,423
Small business loans		30,238	—	1,535	—	31,773
Total	$	934,299	18,263	17,090	—	969,652

December 31, 2019			Special
(dollars in thousands)	Pass		mention	Substandard	Doubtful	Total
Commercial mortgage	$	353,724	5,821	3,045	—	362,590
Home equity lines and loans		81,046	—	537	—	81,583
Construction		170,823	1,221	—	—	172,044
Commercial and industrial		251,320	9,648	12,333	—	273,301
Small business loans		20,351	—	1,265	—	21,616
Total	$	877,264	16,690	17,180	—	911,134

Schedule of allocations based on the credit quality indicators

	March 31, 2020				December 31, 2019
(dollars in thousands)	Performing		Nonperforming	Total	Performing		Nonperforming	Total
Residential mortgage	$	38,297	3,804	42,101	$	42,265	854	43,119
Consumer		570	—	570		1,003	—	1,003
Leases		559	—	559		697	—	697
Total	$	39,426	3,804	43,230	$	43,965	854	44,819

Schedule of recorded investment and principal balance of impaired loans

	As of  March 31, 2020				As of December 31, 2019
	Recorded		Principal	Related	Recorded	Principal	Related
(dollars in thousands)	investment		balance	allowance	investment	balance	allowance
Impaired loans with related allowance:
Commercial mortgage	$	—	—	—	—	—	—
Commercial and industrial		449	449	21	617	617	27
Small business loans		—	—	—	1,002	1,002	63
Home equity lines and loans		456	459	36	461	461	46
Residential mortgage		—	—	—	—	—	—
Construction		—	—	—	—	—	—
Total		905	908	57	2,080	2,080	136
Impaired loans without related allowance:
Commercial mortgage	$	2,117	2,158	—	2,138	2,173	—
Commercial and industrial		566	614	—	671	718	—
Small business loans		228	228	—	242	242	—
Home equity lines and loans		305	305	—	75	75	—
Residential mortgage		3,804	3,804	—	854	854	—
Construction		1,231	1,233	—	1,247	1,248	—
Total		8,251	8,342	—	5,227	5,310	—
Grand Total	$	9,156	9,250	57	7,307	7,390	136

Schedule of average recorded investment on impaired loans

		Three Months	Three Months
		Ended March 31,	Ended March 31,
		2020	2019
		Average	Average
		recorded	recorded
(dollars in thousands)		investment	investment
Impaired loans with related allowance:
Commercial mortgage	$	—	—
Commercial and industrial		451	673
Small business loans		—	—
Home equity lines and loans		458	—
Residential mortgage		—	—
Construction		—	—
Total		909	673
Impaired loans without related allowance:
Commercial mortgage	$	2,129	1,926
Commercial and industrial		587	797
Small business loans		934	—
Home equity lines and loans		305	82
Residential mortgage		3,806	857
Construction		1,239	1,287
Total		9,000	4,949
Grand Total	$	9,909	5,622

Schedule of balances of TDRs

	March 31,		December 31,
(dollars in thousands)	2020		2019
TDRs included in nonperforming loans and leases	$	312	319
TDRs in compliance with modified terms		3,450	3,599
Total TDRs	$	3,762	3,918