LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 2022

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of Loans

	June 30,		December 31,
(in thousands)	2022		2021
Commercial construction	$	86,163	$	56,263
Commercial real estate owner occupied		250,890		257,122
Commercial real estate non-owner occupied		1,003,573		887,092
Tax exempt		44,439		41,280
Commercial and industrial		301,381		307,112
Residential real estate		939,730		888,263
Home equity		92,949		86,657
Consumer other		8,149		8,121
Total loans		2,727,274		2,531,910
Allowance for credit losses		23,756		22,718
Net loans	$	2,703,518	$	2,509,192

Summary of Unamortized Net Costs and Premiums

	June 30,		December 31,
(in thousands)	2022		2021
Net unamortized loan origination costs	$	4,276	$	3,014
Net unamortized fair value discount on acquired loans		(4,088)		(4,758)
Total	$	188	$	(1,744)

Schedule of Activity in the Allowance for Credit Losses

	At or for the Three Months Ended June 30, 2022
	Balance at
	Beginning of								Balance at
(in thousands)	Period		Charge Offs		Recoveries		Provision		End of Period
Commercial construction	$	1,001	$	—	$	—	$	9	$	1,010
Commercial real estate owner occupied		2,673		—		61		(12)		2,722
Commercial real estate non-owner occupied		7,007		—		—		354		7,361
Tax exempt		—		—		—		105		105
Commercial and industrial		4,739		—		12		69		4,820
Residential real estate		6,878		—		6		(78)		6,806
Home equity		827		(4)		15		27		865
Consumer other		65		(58)		—		60		67
Total	$	23,190	$	(62)	$	94	$	534	$	23,756

	At or for the Six Months Ended June 30, 2022
	Balance at
	Beginning of								Balance at
(in thousands)	Period		Charge Offs		Recoveries		Provision		End of Period
Commercial construction	$	2,111	$	—	$	—	$	(1,101)	$	1,010
Commercial real estate owner occupied		2,751		—		113		(142)		2,722
Commercial real estate non-owner occupied		5,650		—		—		1,711		7,361
Tax exempt		86		—		—		19		105
Commercial and industrial		5,369		—		37		(586)		4,820
Residential real estate		5,862		(15)		98		861		6,806
Home equity		814		(6)		20		37		865
Consumer other		75		(124)		4		112		67
Total	$	22,718	$	(145)	$	272	$	911	$	23,756

	At or for the Three Months Ended June 30, 2021
	Balance at
	Beginning of								Balance at
(in thousands)	Period		Charge Offs		Recoveries		Provision		End of Period
Commercial construction	$	1,792	$	—	$	—	$	580	$	2,372
Commercial real estate owner occupied		3,352		(108)		2		(694)		2,552
Commercial real estate non-owner occupied		5,902		—		—		(298)		5,604
Tax exempt		94		—		—		(3)		91
Commercial and industrial		5,040		(20)		13		192		5,225
Residential real estate		6,569		(21)		109		(588)		6,069
Home equity		823		(32)		36		(5)		822
Consumer other		81		(58)		6		51		80
Total	$	23,653	$	(239)	$	166	$	(765)	$	22,815

	At or for the Six Months Ended June 30, 2021
	Balance at
	Beginning of		Impact of ASC								Balance at
(in thousands)	Period		326		Charge Offs		Recoveries		Provision		End of Period
Commercial construction	$	824	$	1,196	$	—	$	18	$	334	$	2,372
Commercial real estate owner occupied		1,783		708		(261)		2		320		2,552
Commercial real estate non-owner occupied		7,864		(2,008)		—		4		(256)		5,604
Tax exempt		58		40		—		—		(7)		91
Commercial and industrial		3,137		2,996		(20)		14		(902)		5,225
Residential real estate		5,010		1,732		(61)		122		(734)		6,069
Home equity		285		603		(54)		47		(59)		822
Consumer other		121		(39)		(59)		7		50		80
Total	$	19,082	$	5,228	$	(455)	$	214	$	(1,254)	$	22,815

Schedule of Loans by Risk Rating

(in thousands)	2022		2021		2020		2019		2018		Prior		Total
Commercial construction
Risk rating:
Pass	$	16,952	$	25,707	$	31,927	$	1,011	$	10,566	$	—	$	86,163
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Total	$	16,952	$	25,707	$	31,927	$	1,011	$	10,566	$	—	$	86,163
Commercial real estate owner occupied
Risk rating:
Pass	$	16,947	$	12,956	$	24,170	$	32,907	$	38,530	$	115,912	$	241,422
Special mention		—		—		246		—		978		1,819		3,043
Substandard		—		—		—		—		853		5,253		6,106
Doubtful		—		—		—		—		167		152		319
Total	$	16,947	$	12,956	$	24,416	$	32,907	$	40,528	$	123,136	$	250,890
Commercial real estate non-owner occupied
Risk rating:
Pass	$	186,590	$	247,260	$	152,249	$	90,146	$	37,524	$	271,359	$	985,128
Special mention		—		—		—		151		978		14,830		15,959
Substandard		—		—		—		—		—		2,323		2,323
Doubtful		—		—		—		—		—		163		163
Total	$	186,590	$	247,260	$	152,249	$	90,297	$	38,502	$	288,675	$	1,003,573
Tax exempt
Risk rating:
Pass	$	6,899	$	1,155	$	290	$	925	$	13,543	$	21,627	$	44,439
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Total	$	6,899	$	1,155	$	290	$	925	$	13,543	$	21,627	$	44,439
Commercial and industrial
Risk rating:
Pass	$	39,970	$	69,858	$	53,091	$	31,842	$	9,726	$	94,725	$	299,212
Special mention		—		—		60		268		442		312		1,082
Substandard		—		58		2		304		—		620		984
Doubtful		—		—		—		—		—		103		103
Total	$	39,970	$	69,916	$	53,153	$	32,414	$	10,168	$	95,760	$	301,381
(continued)

(in thousands)	2022		2021		2020		2019		2018		Prior		Total
Residential real estate
Performing	$	127,436	$	183,662	$	114,026	$	74,866	$	54,141	$	380,464	$	934,595
Nonperforming		—		—		—		—		647		4,488		5,135
Total	$	127,436	$	183,662	$	114,026	$	74,866	$	54,788	$	384,952	$	939,730
Home equity
Performing	$	7,850	$	11,632	$	10,339	$	7,898	$	7,907	$	46,163	$	91,789
Nonperforming		—		—		—		—		—		1,160		1,160
Total	$	7,850	$	11,632	$	10,339	$	7,898	$	7,907	$	47,323	$	92,949
Consumer other
Performing	$	3,156	$	1,879	$	1,197	$	472	$	409	$	1,028	$	8,141
Nonperforming		—		—		—		—		6		2		8
Total	$	3,156	$	1,879	$	1,197	$	472	$	415	$	1,030	$	8,149
Total Loans	$	405,800	$	554,167	$	387,597	$	240,790	$	176,417	$	962,503	$	2,727,274

(in thousands)	2021		2020		2019		2018		2017		Prior		Total
Commercial construction
Risk rating:
Pass	$	22,866	$	4,787	$	19,211	$	9,399	$	—	$	—	$	56,263
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Total	$	22,866	$	4,787	$	19,211	$	9,399	$	—	$	—	$	56,263
Commercial real estate owner occupied
Risk rating:
Pass	$	12,940	$	25,240	$	34,782	$	49,136	$	19,292	$	103,144	$	244,534
Special mention		—		—		760		—		—		2,659		3,419
Substandard		—		—		1		853		247		7,737		8,838
Doubtful		—		—		—		167		—		164		331
Total	$	12,940	$	25,240	$	35,543	$	50,156	$	19,539	$	113,704	$	257,122
Commercial real estate non-owner occupied
Risk rating:
Pass	$	235,646	$	172,785	$	119,326	$	39,663	$	136,120	$	165,329	$	868,869
Special mention		—		—		174		—		—		14,789		14,963
Substandard		—		—		—		—		—		3,097		3,097
Doubtful		—		—		—		—		—		163		163
Total	$	235,646	$	172,785	$	119,500	$	39,663	$	136,120	$	183,378	$	887,092
Tax exempt
Risk rating:
Pass	$	1,249	$	299	$	968	$	14,408	$	5,329	$	19,027	$	41,280
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Total	$	1,249	$	299	$	968	$	14,408	$	5,329	$	19,027	$	41,280
Commercial and industrial
Risk rating:
Pass	$	77,608	$	80,569	$	33,405	$	16,457	$	33,413	$	61,594	$	303,046
Special mention		—		—		584		468		172		1,396		2,620
Substandard		58		3		512		—		48		578		1,199
Doubtful		—		—		—		—		92		155		247
Total	$	77,666	$	80,572	$	34,501	$	16,925	$	33,725	$	63,723	$	307,112
(continued)

(in thousands)	2021		2020		2019		2018		2017		Prior		Total
Residential real estate
Performing	$	191,466	$	120,495	$	83,044	$	62,299	$	59,642	$	364,482	$	881,428
Nonperforming		—		—		—		286		178		6,371		6,835
Total	$	191,466	$	120,495	$	83,044	$	62,585	$	59,820	$	370,853	$	888,263
Home equity
Performing	$	12,770	$	10,461	$	9,005	$	7,855	$	6,474	$	38,823	$	85,388
Nonperforming		—		—		—		—		—		1,269		1,269
Total	$	12,770	$	10,461	$	9,005	$	7,855	$	6,474	$	40,092	$	86,657
Consumer other
Performing	$	2,525	$	1,659	$	792	$	669	$	92	$	2,379	$	8,116
Nonperforming		—		—		—		—		—		5		5
Total	$	2,525	$	1,659	$	792	$	669	$	92	$	2,384	$	8,121
Total Loans	$	557,128	$	416,298	$	302,564	$	201,660	$	261,099	$	793,161	$	2,531,910

Summary of Past Due Loans

	June 30, 2022
(in thousands)	30-59		60-89		90+		Total Past Due		Current		Total Loans
Commercial construction	$	—	$	—	$	—	$	—	$	86,163	$	86,163
Commercial real estate owner occupied		6		—		—		6		250,884		250,890
Commercial real estate non-owner occupied		—		—		—		—		1,003,573		1,003,573
Tax exempt		—		—		—		—		44,439		44,439
Commercial and industrial		35		11		—		46		301,335		301,381
Residential real estate		762		1,278		1,679		3,719		936,011		939,730
Home equity		346		60		401		807		92,142		92,949
Consumer other		57		1		8		66		8,083		8,149
Total	$	1,206	$	1,350	$	2,088	$	4,644	$	2,722,630	$	2,727,274

	December 31, 2021
(in thousands)	30-59		60-89		90+		Total Past Due		Current		Total Loans
Commercial construction	$	—	$	—	$	—	$	—	$	56,263	$	56,263
Commercial real estate owner occupied		1,190		7		1		1,198		255,924		257,122
Commercial real estate non-owner occupied		—		—		—		—		887,092		887,092
Tax exempt		—		—		—		—		41,280		41,280
Commercial and industrial		31		318		185		534		306,578		307,112
Residential real estate		5,010		1,238		1,416		7,664		880,599		888,263
Home equity		699		149		101		949		85,708		86,657
Consumer other		29		—		2		31		8,090		8,121
Total	$	6,959	$	1,712	$	1,705	$	10,376	$	2,521,534	$	2,531,910

Summary of Non-Accrual Loans

	June 30, 2022
			Nonaccrual With No		90+ Days Past
(in thousands)	Nonaccrual		Related Allowance		Due and Accruing
Commercial construction	$	—	$	—	$	—
Commercial real estate owner occupied		636		383		—
Commercial real estate non-owner occupied		595		595		—
Tax exempt		—		—		—
Commercial and industrial		344		232		—
Residential real estate		5,135		413		704
Home equity		1,160		287		15
Consumer other		8		—		—
Total	$	7,878	$	1,910	$	719

	December 31, 2021
			Nonaccrual With No		90+ Days Past
(in thousands)	Nonaccrual		Related Allowance		Due and Accruing
Commercial construction	$	—	$	—	$	—
Commercial real estate owner occupied		783		424		—
Commercial real estate non-owner occupied		622		459		—
Tax exempt		—		—		—
Commercial and industrial		677		542		30
Residential real estate		6,835		2,537		41
Home equity		1,269		305		63
Consumer other		5		—		—
Total	$	10,191	$	4,267	$	134

Schedule of amortized cost basis of collateral-dependent loans

	June 30, 2022				December 31, 2021
(in thousands)	Real Estate		Other		Real Estate		Other
Commercial construction	$	—	$	—	$	—	$	—
Commercial real estate owner occupied		636		—		783		—
Commercial real estate non-owner occupied		595		—		622		—
Tax exempt		—		—		—		—
Commercial and industrial		122		222		385		292
Residential real estate		5,135		—		6,835		—
Home equity		1,160		—		1,269		—
Consumer other		8		—		5		—
Total	$	7,656	$	222	$	9,899	$	292

Unfunded Loan Commitment

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of Activity in the Allowance for Credit Losses

(in thousands)	Three Months Ended June 30, 2022		Six Months Ended June 30, 2022
Beginning Balance	$	2,182	$	2,152
Provision for credit losses		341		371
Ending Balance	$	2,523	$	2,523

(in thousands)	Three Months Ended June 30, 2021		Six Months Ended June 30, 2021
Beginning Balance	$	1,819	$	359
Impact of ASC 326		—		1,616
Provision for credit losses		102		(54)
Ending Balance	$	1,921	$	1,921