LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

12 Months Ended

Dec. 31, 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
	December 31,		December 31,		December 31,		December 31,
	2022		2021		2022		2021
Grade:
1-6 Pass	$	85,845	$	81,561	$	591,309	$	498,565
7    Special Mention		—		—		634		1,098
8    Substandard		725		796		18,781		21,248
9    Doubtful		—		—		—		—
Add (deduct):  Unearned discount		—		—		—		—
Net deferred loan fees and costs		429		169		825		743
Total loans	$	86,999	$	82,526	$	611,549	$	521,654

	Residential Real Estate
	Including Home Equity				Consumer
	December 31,		December 31,		December 31,		December 31,
	2022		2021		2022		2021
Grade:
1-6 Pass	$	153,902	$	141,983	$	5,349	$	5,210
7    Special Mention		—		570		—		—
8    Substandard		795		1,020		—		5
9    Doubtful		—		—		—		—
Add (deduct):  Unearned discount		—		—		—		—
Net deferred loan fees and costs		(191)		(190)		66		63
Total loans	$	154,506	$	143,383	$	5,415	$	5,278

	Total Loans
	December 31,		December 31,
	2022		2021
Grade:
1-6 Pass	$	836,405	$	727,319
7 Special Mention		634		1,668
8 Substandard		20,301		23,069
9 Doubtful		—		—
Add (deduct):  Unearned discount		—		—
Net deferred loan fees and costs		1,129		785
Total loans	$	858,469	$	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 year ended December 31, 2022:
Allowance for Loan Losses:
Beginning balance	$	681	$	5,408	$	1,539	$	84	$	968	$	8,680
Charge-offs		(158)		(3)		(12)		(33)		—		(206)
Recoveries		3		40		16		5		—		64
Provision (credit)		178		487		14		25		(968)		(264)
Ending Balance	$	704	$	5,932	$	1,557	$	81	$	—	$	8,274
Ending balance: individually
evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively
evaluated for impairment	$	704	$	5,932	$	1,557	$	81	$	—	$	8,274
Loans Receivable:
Ending Balance	$	86,999	$	611,549	$	154,506	$	5,415	$	—	$	858,469
Ending balance: individually
evaluated for impairment	$	973	$	9,495	$	739	$	—	$	—	$	11,207
Ending balance: collectively
evaluated for impairment	$	86,026	$	602,054	$	153,767	$	5,415	$	—	$	847,262

(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)	December 31,		December 31,
	2022		2021
Non-accrual TDRs	$	1,324	$	1,413
Accruing TDRs		6,156		6,607
Total	$	7,480	$	8,020

Schedule of the loan modifications categorized as TDRs

Of the loans that were modified as TDRs within the twelve months preceding December 31, 2022, no loans experienced payment defaults during the year ended December 31, 2022. Three commercial real estate loans totaling $285,000 that were modified as TDRs within the twelve months preceding December 31, 2021 experienced payment defaults during the year ended December 31, 2021.

The following table presents information regarding the loan modifications categorized as TDRs during the year ended December 31, 2022 and 2021.

(Dollars in thousands)	Year Ended December 31, 2022
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded		Recorded
	Contracts	Investment		Investment		Investment
Commercial Real Estate	2	$	481	$	515	$	501
Total	2	$	481	$	515	$	501
(Dollars in thousands)	Year Ended December 31, 2021
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded		Recorded
	Contracts	Investment		Investment		Investment
Commercial Real Estate	4	$	360	$	360	$	342
Total	4	$	360	$	360	$	342

Schedule of loan modifications made for loans categorized as TDRs

	Year Ended December 31, 2022
	Rate	Term	Payment	Number
	Modification	Modification	Modification	Modified
Commercial Real Estate	—	—	2	2
Total	—	—	2	2
	Year Ended December 31, 2021
	Rate	Term	Payment	Number
	Modification	Modification	Modification	Modified
Commercial Real Estate	—	2	2	4
Total	—	2	2	4

Schedule of information related to loan modifications

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

The recorded investment, unpaid principal balance, and the related allowance of the Corporation’s impaired loans are summarized below at December 31, 2022 and 2021.

(Dollars in thousands)	December 31, 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	$	973	$	973	$	—	$	1,017	$	1,017	$	—
Commercial Real Estate		9,495		12,430		—		11,803		14,735		—
Residential Real Estate		739		771		—		853		885		—
With an allowance recorded:
Commercial and Industrial		—		—		—		—		—		—
Commercial Real Estate		—		—		—		—		—		—
Residential Real Estate		—		—		—		—		—		—
Total	$	11,207	$	14,174	$	—	$	13,673	$	16,637	$	—
Total consists of:
Commercial and Industrial	$	973	$	973	$	—	$	1,017	$	1,017	$	—
Commercial Real Estate	$	9,495	$	12,430	$	—	$	11,803	$	14,735	$	—
Residential Real Estate	$	739	$	771	$	—	$	853	$	885	$	—

At December 31, 2022 and 2021, $7,480,000 and $8,020,000 of loans classified as TDRs were included in impaired loans with a total allocated allowance of $0 at both December 31, 2022 and December 31, 2021. The recorded investment represents the loan balance reflected on the consolidated balance sheets net of any charge-offs. The unpaid balance is equal to the gross amount due on the loan.

The average recorded investment and interest income recognized for the Corporation’s impaired loans are summarized below for the years ended December 31, 2022 and 2021.

(Dollars in thousands)	For the Year Ended				For the Year Ended
	December 31, 2022				December 31, 2021
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
With no related allowance recorded:
Commercial and Industrial	$	992	$	14	$	1,052	$	9
Commercial Real Estate		10,741		294		12,571		346
Residential Real Estate		841		1		1,107		2
With an allowance recorded:
Commercial and Industrial		—		—		—		—
Commercial Real Estate		—		—		198		—
Residential Real Estate		—		—		—		—
Total	$	12,574	$	309	$	14,928	$	357
Total consists of:
Commercial and Industrial	$	992	$	14	$	1,052	$	9
Commercial Real Estate	$	10,741	$	294	$	12,769	$	346
Residential Real Estate	$	841	$	1	$	1,107	$	2

Of the $309,000 and $357,000 in interest income recognized on impaired loans for the years ended December 31, 2022 and 2021, respectively, $0 and $3,000 in interest income was recognized with respect to non-accrual loans for each respective period.

Schedule of total non-performing assets

Total non-performing assets (which includes loans receivable on non-accrual status, foreclosed assets held for resale and loans past-due 90 days or more and still accruing interest) as of December 31, 2022 and 2021 were as follows:

(Dollars in thousands)	December 31,		December 31,
	2022		2021
Commercial and Industrial	$	664	$	708
Commercial Real Estate		3,658		5,519
Residential Real Estate		729		839
Total non-accrual loans		5,051		7,066
Foreclosed assets held for resale		—		—
Loans past-due 90 days or more and still accruing interest		308		—
Total non-performing assets	$	5,359	$	7,066

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

The following tables present the classes of the loan portfolio summarized by the past-due status at December 31, 2022 and 2021:

(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, 2022:
Commercial and Industrial	$	61	$	63	$	640	$	764	$	86,235	$	86,999	$	—
Commercial Real Estate		2,074		34		3,797		5,905		605,644		611,549		140
Residential Real Estate		608		25		897		1,530		152,976		154,506		168
Consumer		11		2		—		13		5,402		5,415		—
Total	$	2,754	$	124	$	5,334	$	8,212	$	850,257	$	858,469	$	308

(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	$	—