LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

9 Months Ended

Sep. 30, 2022

LOANS AND ALLOWANCE FOR LOAN LOSSES

Schedule of classes of the loan portfolio summarized by risk rating

	Commercial and
(Dollars in thousands)	Industrial				Commercial Real Estate
	September 30,		December 31,		September 30,		December 31,
	2022		2021		2022		2021
Grade:
1-6 Pass	$	84,683	$	81,561	$	578,976	$	498,565
7    Special Mention		—		—		837		1,098
8    Substandard		736		796		19,387		21,248
9    Doubtful		—		—		—		—
Add (deduct):  Unearned discount and		—		—		—		—
Net deferred loan fees and costs		436		169		868		743
Total loans	$	85,855	$	82,526	$	600,068	$	521,654

	Residential Real Estate
	Including Home Equity				Consumer
	September 30,		December 31,		September 30,		December 31,
	2022		2021		2022		2021
Grade:
1-6 Pass	$	153,535	$	141,983	$	5,304	$	5,210
7    Special Mention		—		570		58		—
8    Substandard		979		1,020		—		5
9    Doubtful		—		—		—		—
Add (deduct):  Unearned discount and		—		—		—		—
Net deferred loan fees and costs		(190)		(190)		66		63
Total loans	$	154,324	$	143,383	$	5,428	$	5,278

	Total Loans
	September 30,		December 31,
	2022		2021
Grade:
1-6 Pass	$	822,498	$	727,319
7 Special Mention		895		1,668
8 Substandard		21,102		23,069
9 Doubtful		—		—
Add (deduct):  Unearned discount and		—		—
Net deferred loan fees and costs		1,180		785
Total loans	$	845,675	$	752,841

Schedule of the allowance for loan losses, by loan class

(Dollars in thousands)	Commercial		Commercial		Residential
	and Industrial		Real Estate		Real Estate		Consumer		Unallocated		Total
As of and for the three months ended September 30, 2022:
Allowance for Loan Losses:
Beginning balance	$	675	$	5,954	$	1,609	$	79	$	843	$	9,160
Charge-offs		(149)		—		(12)		(10)		—		(171)
Recoveries		—		—		2		1		—		3
Provision (credit)		192		93		11		5		(82)		219
Ending Balance	$	718	$	6,047	$	1,610	$	75	$	761	$	9,211

(Dollars in thousands)	Commercial		Commercial		Residential
	and Industrial		Real Estate		Real Estate		Consumer		Unallocated		Total
As of and for the nine months ended September 30, 2022:
Allowance for Loan Losses:
Beginning balance	$	681	$	5,408	$	1,539	$	84	$	968	$	8,680
Charge-offs		(158)		—		(12)		(16)		—		(186)
Recoveries		2		38		16		5		—		61
Provision (credit)		193		601		67		2		(207)		656
Ending Balance	$	718	$	6,047	$	1,610	$	75	$	761	$	9,211
Ending balance: individually
evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively
evaluated for impairment	$	718	$	6,047	$	1,610	$	75	$	761	$	9,211
Loans Receivable:
Ending Balance	$	85,855	$	600,068	$	154,324	$	5,428	$	—	$	845,675
Ending balance: individually
evaluated for impairment	$	979	$	10,357	$	841	$	—	$	—	$	12,177
Ending balance: collectively
evaluated for impairment	$	84,876	$	589,711	$	153,483	$	5,428	$	—	$	833,498

(Dollars in thousands)	Commercial		Commercial		Residential
	and Industrial		Real Estate		Real Estate		Consumer		Unallocated		Total
As of and for the three months ended September 30, 2021:
Allowance for Loan Losses:
Beginning balance	$	851	$	4,930	$	1,539	$	95	$	709	$	8,124
Charge-offs		—		—		(10)		(13)		—		(23)
Recoveries		—		—		1		1		—		2
(Credit) provision		(84)		280		(16)		11		(6)		185
Ending Balance	$	767	$	5,210	$	1,514	$	94	$	703	$	8,288

(Dollars in thousands)	Commercial		Commercial		Residential
	and Industrial		Real Estate		Real Estate		Consumer		Unallocated		Total
As of and for the nine months ended September 30, 2021:
Allowance for Loan Losses:
Beginning balance	$	787	$	4,762	$	1,643	$	94	$	647	$	7,933
Charge-offs		(13)		(29)		(65)		(33)		—		(140)
Recoveries		—		30		2		8		—		40
(Credit) provision		(7)		447		(66)		25		56		455
Ending Balance	$	767	$	5,210	$	1,514	$	94	$	703	$	8,288
Ending balance: individually
evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively
evaluated for impairment	$	767	$	5,210	$	1,514	$	94	$	703	$	8,288
Loans Receivable:
Ending Balance	$	94,791	$	513,001	$	143,747	$	5,246	$	—	$	756,785
Ending balance: individually
evaluated for impairment	$	1,035	$	12,685	$	1,169	$	—	$	—	$	14,889
Ending balance: collectively
evaluated for impairment	$	93,756	$	500,316	$	142,578	$	5,246	$	—	$	741,896

(Dollars in thousands)	Commercial		Commercial		Residential
	and Industrial		Real Estate		Real Estate		Consumer		Unallocated		Total
As of and for the year ended December 31, 2021:
Allowance for Loan Losses:
Beginning balance	$	787	$	4,762	$	1,643	$	94	$	647	$	7,933
Charge-offs		(13)		(29)		(80)		(36)		—		(158)
Recoveries		—		30		4		11		—		45
(Credit) provision		(93)		645		(28)		15		321		860
Ending Balance	$	681	$	5,408	$	1,539	$	84	$	968	$	8,680
Ending balance: individually
evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively
evaluated for impairment	$	681	$	5,408	$	1,539	$	84	$	968	$	8,680
Loans Receivable:
Ending Balance	$	82,526	$	521,654	$	143,383	$	5,278	$	—	$	752,841
Ending balance: individually
evaluated for impairment	$	1,017	$	11,803	$	853	$	—	$	—	$	13,673
Ending balance: collectively
evaluated for impairment	$	81,509	$	509,851	$	142,530	$	5,278	$	—	$	739,168

Schedule of the outstanding recorded investment of TDRs

(Dollars in thousands)	September 30,		December 31,
	2022		2021
Non-accrual TDRs	$	1,329	$	1,413
Accruing TDRs		6,260		6,607
Total	$	7,589	$	8,020

Schedule of the loan modifications categorized as TDRs

(Dollars in thousands)	For the Three Months Ended September 30, 2022
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded		Recorded
	Contracts	Investment		Investment		Investment
Commercial Real Estate	1	$	134	$	143	$	143
Total	1	$	134	$	143	$	143
(Dollars in thousands)	For the Nine Months Ended September 30, 2022
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded		Recorded
	Contracts	Investment		Investment		Investment
Commercial Real Estate	2	$	481	$	515	$	507
Total	2	$	481	$	515	$	507

(Dollars in thousands)	For the Three Months Ended September 30, 2021
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded		Recorded
	Contracts	Investment		Investment		Investment
Commercial Real Estate	1	$	59	$	59	$	59
Total	1	$	59	$	59	$	59
(Dollars in thousands)	For the Nine Months Ended September 30, 2021
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded		Recorded
	Contracts	Investment		Investment		Investment
Commercial Real Estate	4	$	360	$	360	$	350
Total	4	$	360	$	360	$	350

	For the Three Months Ended September 30, 2022
	Rate	Term	Payment	Number
	Modification	Modification	Modification	Modified
Commercial Real Estate	—	—	1	1
Total	—	—	1	1
	For the Nine Months Ended September 30, 2022
	Rate	Term	Payment	Number
	Modification	Modification	Modification	Modified
Commercial Real Estate	—	—	2	2
Total	—	—	2	2
	For the Three Months Ended September 30, 2021
	Rate	Term	Payment	Number
	Modification	Modification	Modification	Modified
Commercial Real Estate	—	—	1	1
Total	—	—	1	1
	For the Nine Months Ended September 30, 2021
	Rate	Term	Payment	Number
	Modification	Modification	Modification	Modified
Commercial Real Estate	—	2	2	4
Total	—	2	2	4

Schedule of recorded investment, unpaid principal balance, related allowance, average recorded investment, and interest income recognized with respect to the Corporation's impaired loans

(Dollars in thousands)	September 30, 2022						December 31, 2021
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
With no related allowance recorded:
Commercial and Industrial	$	979	$	979	$	—	$	1,017	$	1,017	$	—
Commercial Real Estate		10,357		13,289		—		11,803		14,735		—
Residential Real Estate		841		874		—		853		885		—
With an allowance recorded:
Commercial and Industrial		—		—		—		—		—		—
Commercial Real Estate		—		—		—		—		—		—
Residential Real Estate		—		—		—		—		—		—
Total	$	12,177	$	15,142	$	—	$	13,673	$	16,637	$	—
Total consists of:
Commercial and Industrial	$	979	$	979	$	—	$	1,017	$	1,017	$	—
Commercial Real Estate	$	10,357	$	13,289	$	—	$	11,803	$	14,735	$	—
Residential Real Estate	$	841	$	874	$	—	$	853	$	885	$	—

(Dollars in thousands)	For the Three Months Ended				For the Three Months Ended
	September 30, 2022				September 30, 2021
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
With no related allowance recorded:
Commercial and Industrial	$	987	$	4	$	1,042	$	2
Commercial Real Estate		10,400		71		12,890		82
Residential Real Estate		843		—		1,181		—
With an allowance recorded:
Commercial and Industrial		—		—		—		—
Commercial Real Estate		—		—		—		—
Residential Real Estate		—		—		—		—
Total	$	12,230	$	75	$	15,113	$	84
Total consists of:
Commercial and Industrial	$	987	$	4	$	1,042	$	2
Commercial Real Estate	$	10,400	$	71	$	12,890	$	82
Residential Real Estate	$	843	$	—	$	1,181	$	—

(Dollars in thousands)	For the Nine Months Ended				For the Nine Months Ended
	September 30, 2022				September 30, 2021
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
With no related allowance recorded:
Commercial and Industrial	$	997	$	9	$	1,061	$	7
Commercial Real Estate		10,962		213		12,673		270
Residential Real Estate		847		—		1,155		1
With an allowance recorded:
Commercial and Industrial		—		—		—		—
Commercial Real Estate		—		—		322		—
Residential Real Estate		—		—		—		—
Total	$	12,806	$	222	$	15,211	$	278
Total consists of:
Commercial and Industrial	$	997	$	9	$	1,061	$	7
Commercial Real Estate	$	10,962	$	213	$	12,995	$	270
Residential Real Estate	$	847	$	—	$	1,155	$	1

Schedule of total non-performing assets

(Dollars in thousands)	September 30,		December 31,
	2022		2021
Commercial and Industrial	$	670	$	708
Commercial Real Estate		4,417		5,519
Residential Real Estate		830		839
Total non-accrual loans		5,917		7,066
Foreclosed assets held for resale		—		—
Loans past-due 90 days or more and still accruing interest		165		—
Total non-performing assets	$	6,082	$	7,066

Schedule of the classes of the loan portfolio, including non-accrual loans and TDRs, summarized by past-due status

(Dollars in thousands)													90 Days
													Or Greater
													Past Due
					90 Days					Current-			and Still
	30-59 Days		60-89 Days		or Greater		Total			29 Days	Total		Accruing
	Past Due		Past Due		Past Due		Past Due		Past Due		Loans		Interest
September 30, 2022:
Commercial and Industrial	$	—	$	—	$	645	$	645	$	85,210	$	85,855	$	—
Commercial Real Estate		486		146		3,834		4,466		595,602		600,068		—
Residential Real Estate		122		195		995		1,312		153,012		154,324		165
Consumer		3		4		—		7		5,421		5,428		—
Total	$	611	$	345	$	5,474	$	6,430	$	839,245	$	845,675	$	165

(Dollars in thousands)													90 Days
													Or Greater
													Past Due
					90 Days					Current-			and Still
	30-59 Days		60-89 Days		or Greater		Total			29 Days	Total		Accruing
	Past Due		Past Due		Past Due		Past Due		Past Due		Loans		Interest
December 31, 2021:
Commercial and Industrial	$	47	$	—	$	678	$	725	$	81,801	$	82,526	$	—
Commercial Real Estate		116		189		4,891		5,196		516,458		521,654		—
Residential Real Estate		553		191		839		1,583		141,800		143,383		—
Consumer		14		—		—		14		5,264		5,278		—
Total	$	730	$	380	$	6,408	$	7,518	$	745,323	$	752,841	$	—