LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2023

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

Schedule of Loans

	March 31,		December 31,
(in thousands)	2023		2022
Commercial construction	$	132,960	$	117,577
Commercial real estate owner occupied		261,365		244,814
Commercial real estate non-owner occupied		1,149,030		1,146,674
Tax exempt		43,253		42,879
Commercial and industrial		298,384		297,112
Residential real estate		961,701		954,968
Home equity		89,777		90,865
Consumer other		7,535		7,801
Total loans		2,944,005		2,902,690
Allowance for credit losses		26,607		25,860
Net loans	$	2,917,398	$	2,876,830

Summary of Unamortized Net Costs and Premiums

	March 31,		December 31,
(in thousands)	2023		2022
Net unamortized loan origination costs	$	3,233	$	3,184
Net unamortized fair value discount on acquired loans		(3,339)		(3,506)
Total	$	(106)	$	(322)

Schedule of Activity in the Allowance for Credit Losses

	At or for the Three Months Ended March 31, 2023
	Balance at
	Beginning of								Balance at
(in thousands)	Period		Charge Offs		Recoveries		Provision		End of Period
Commercial construction	$	2,579	$	—	$	—	$	455	$	3,034
Commercial real estate owner occupied		2,189		—		—		159		2,348
Commercial real estate non-owner occupied		9,341		—		—		3		9,344
Tax exempt		93		—		—		—		93
Commercial and industrial		3,493		(1)		6		117		3,615
Residential real estate		7,274		(4)		8		27		7,305
Home equity		811		—		2		(21)		792
Consumer other		80		(63)		1		58		76
Total	$	25,860	$	(68)	$	17	$	798	$	26,607

	At or for the Three Months Ended March 31, 2022
	Balance at
	Beginning of								Balance at
(in thousands)	Period		Charge Offs		Recoveries		Provision		End of Period
Commercial construction	$	2,111	$	—	$	—	$	(1,110)	$	1,001
Commercial real estate owner occupied		2,751		—		54		(132)		2,673
Commercial real estate non-owner occupied		5,650		—		—		1,357		7,007
Tax exempt		86		—		—		(86)		—
Commercial and industrial		5,369		—		25		(655)		4,739
Residential real estate		5,862		(15)		91		940		6,878
Home equity		814		(2)		5		10		827
Consumer other		75		(66)		3		53		65
Total	$	22,718	$	(83)	$	178	$	377	$	23,190

Schedule of Loans by Risk Rating

The following table presents our loans by year of origination, loan segmentation and risk indicator as of March 31, 2023:

(in thousands)	2023		2022		2021		2020		2019		Prior		Total
Commercial construction
Risk rating:
Pass	$	375	$	67,868	$	36,035	$	3,541	$	—	$	954	$	108,773
Special mention		—		—		—		24,187		—		—		24,187
Substandard		—		—		—		—		—		—		—
Total	$	375	$	67,868	$	36,035	$	27,728	$	—	$	954	$	132,960
Current period gross write-offs		—		—		—		—		—		—		—
Commercial real estate owner occupied
Risk rating:
Pass	$	2,829	$	30,185	$	23,375	$	22,719	$	30,348	$	146,061	$	255,517
Special mention		—		—		—		240		659		531		1,430
Substandard		—		—		—		—		—		4,282		4,282
Doubtful		—		—		—		—		—		136		136
Total	$	2,829	$	30,185	$	23,375	$	22,959	$	31,007	$	151,010	$	261,365
Current period gross write-offs		—		—		—		—		—		—		—
Commercial real estate non-owner occupied
Risk rating:
Pass	$	2,795	$	372,122	$	228,413	$	144,782	$	89,518	$	270,794	$	1,108,424
Special mention		—		—		21,498		—		—		4,135		25,633
Substandard		—		—		—		—		115		14,722		14,837
Doubtful		—		—		—		—		—		136		136
Total	$	2,795	$	372,122	$	249,911	$	144,782	$	89,633	$	289,787	$	1,149,030
Current period gross write-offs		—		—		—		—		—		—		—
Tax exempt
Risk rating:
Pass	$	2	$	10,612	$	946	$	247	$	714	$	30,732	$	43,253
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Total	$	2	$	10,612	$	946	$	247	$	714	$	30,732	$	43,253
Current period gross write-offs		—		—		—		—		—		—		—
Commercial and industrial
Risk rating:
Pass	$	14,313	$	74,242	$	26,272	$	59,235	$	29,188	$	88,912	$	292,162
Special mention		45		1,403		—		48		956		735		3,187
Substandard		—		102		142		120		335		2,336		3,035
Doubtful		—		—		—		—		—		—		—
Total	$	14,358	$	75,747	$	26,414	$	59,403	$	30,479	$	91,983	$	298,384
Current period gross write-offs		—		—		—		—		—		1		1

(in thousands)	2023		2022		2021		2020		2019		Prior		Total
Residential real estate
Performing	$	21,385	$	196,948	$	176,209	$	109,432	$	67,756	$	385,905	$	957,635
Nonperforming		—		—		43		—		48		3,975		4,066
Total	$	21,385	$	196,948	$	176,252	$	109,432	$	67,804	$	389,880	$	961,701
Current period gross write-offs		—		—		—		—		—		4		4
Home equity
Performing	$	3,428	$	18,315	$	10,306	$	7,383	$	5,953	$	43,459	$	88,844
Nonperforming		—		—		—		—		—		933		933
Total	$	3,428	$	18,315	$	10,306	$	7,383	$	5,953	$	44,392	$	89,777
Current period gross write-offs		—		—		—		—		—		—		—
Consumer other
Performing	$	1,862	$	2,659	$	1,150	$	718	$	181	$	961	$	7,531
Nonperforming		—		—		—		4		—		—		4
Total	$	1,862	$	2,659	$	1,150	$	722	$	181	$	961	$	7,535
Current period gross write-offs		—		52		8		2		—	$	1		63
Total Loans	$	47,034	$	774,456	$	524,389	$	372,656	$	225,771	$	999,699	$	2,944,005

The following table presents our loans by year of origination, loan segmentation and risk indicator as of December 31, 2022:

(in thousands)	2022		2021		2020		2019		2018		Prior		Total
Commercial construction
Risk rating:
Pass	$	49,722	$	38,837	$	2,865	$	1,011	$	964	$	—	$	93,399
Special mention		—		—		24,178		—		—		—		24,178
Substandard		—		—		—		—		—		—		—
Total	$	49,722	$	38,837	$	27,043	$	1,011	$	964	$	—	$	117,577
Commercial real estate owner occupied
Risk rating:
Pass	$	22,371	$	11,290	$	23,014	$	31,352	$	46,398	$	103,295	$	237,720
Special mention		—		—		243		666		173		1,870		2,952
Substandard		—		—		—		—		77		3,924		4,001
Doubtful		—		—		—		—		—		141		141
Total	$	22,371	$	11,290	$	23,257	$	32,018	$	46,648	$	109,230	$	244,814
Commercial real estate non-owner occupied
Risk rating:
Pass	$	370,856	$	228,414	$	145,096	$	88,111	$	35,213	$	238,395	$	1,106,085
Special mention		—		21,390		—		127		911		16,612		39,040
Substandard		—		—		—		—		—		1,404		1,404
Doubtful		—		—		—		—		—		145		145
Total	$	370,856	$	249,804	$	145,096	$	88,238	$	36,124	$	256,556	$	1,146,674
Tax exempt
Risk rating:
Pass	$	8,686	$	1,020	$	252	$	772	$	13,231	$	18,918	$	42,879
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Total	$	8,686	$	1,020	$	252	$	772	$	13,231	$	18,918	$	42,879
Commercial and industrial
Risk rating:
Pass	$	83,151	$	26,948	$	62,835	$	27,491	$	9,511	$	81,316	$	291,252
Special mention		1,450		—		53		803		201		619		3,126
Substandard		—		113		111		65		299		2,106		2,694
Doubtful		—		—		—		—		—		40		40
Total	$	84,601	$	27,061	$	62,999	$	28,359	$	10,011	$	84,081	$	297,112

(in thousands)	2022		2021		2020		2019		2018		Prior		Total
Residential real estate
Performing	$	195,320	$	177,480	$	111,021	$	69,170	$	47,797	$	349,795	$	950,583
Nonperforming		—		45		—		49		641		3,650		4,385
Total	$	195,320	$	177,525	$	111,021	$	69,219	$	48,438	$	353,445	$	954,968
Home equity
Performing	$	17,107	$	10,638	$	8,139	$	6,830	$	6,997	$	40,191	$	89,902
Nonperforming		—		—		—		—		—		963		963
Total	$	17,107	$	10,638	$	8,139	$	6,830	$	6,997	$	41,154	$	90,865
Consumer other
Performing	$	4,321	$	1,341	$	863	$	265	$	64	$	942	$	7,796
Nonperforming		—		—		5		—		—		—		5
Total	$	4,321	$	1,341	$	868	$	265	$	64	$	942	$	7,801
Total Loans	$	752,984	$	517,516	$	378,675	$	226,712	$	162,477	$	864,326	$	2,902,690

Summary of Past Due Loans

	March 31, 2023
(in thousands)	30-59		60-89		90+		Total Past Due		Current		Total Loans
Commercial construction	$	—	$	—	$	—	$	—	$	132,960	$	132,960
Commercial real estate owner occupied		197		227		308		732		260,633		261,365
Commercial real estate non-owner occupied		352		—		133		485		1,148,545		1,149,030
Tax exempt		—		—		—		—		43,253		43,253
Commercial and industrial		261		281		134		676		297,708		298,384
Residential real estate		5,325		393		1,728		7,446		954,255		961,701
Home equity		821		—		276		1,097		88,680		89,777
Consumer other		14		9		—		23		7,512		7,535
Total	$	6,970	$	910	$	2,579	$	10,459	$	2,933,546	$	2,944,005

	December 31, 2022
(in thousands)	30-59		60-89		90+		Total Past Due		Current		Total Loans
Commercial construction	$	—	$	—	$	—	$	—	$	117,577	$	117,577
Commercial real estate owner occupied		385		—		—		385		244,429		244,814
Commercial real estate non-owner occupied		45		145		139		329		1,146,345		1,146,674
Tax exempt		—		—		—		—		42,879		42,879
Commercial and industrial		169		—		9		178		296,934		297,112
Residential real estate		803		348		2,029		3,180		951,788		954,968
Home equity		216		160		246		622		90,243		90,865
Consumer other		41		8		—		49		7,752		7,801
Total	$	1,659	$	661	$	2,423	$	4,743	$	2,897,947	$	2,902,690

Summary of Non-Accrual Loans

	March 31, 2023
			Nonaccrual With No		90+ Days Past
(in thousands)	Nonaccrual		Related Allowance		Due and Accruing
Commercial construction	$	—	$	—	$	—
Commercial real estate owner occupied		432		362		—
Commercial real estate non-owner occupied		529		396		—
Tax exempt		—		—		—
Commercial and industrial		1,832		138		—
Residential real estate		4,066		1,181		93
Home equity		933		51		45
Consumer other		4		—		—
Total	$	7,796	$	2,128	$	138

	December 31, 2022
			Nonaccrual With No		90+ Days Past
(in thousands)	Nonaccrual		Related Allowance		Due and Accruing
Commercial construction	$	—	$	—	$	—
Commercial real estate owner occupied		439		360		—
Commercial real estate non-owner occupied		550		411		—
Tax exempt		—		—		—
Commercial and industrial		207		145		—
Residential real estate		4,385		1,361		202
Home equity		963		57		14
Consumer other		5		—		—
Total	$	6,549	$	2,334	$	216

Schedule of amortized cost basis of collateral-dependent loans

	March 31, 2023				December 31, 2022
(in thousands)	Real Estate		Other		Real Estate		Other
Commercial construction	$	—	$	—	$	—	$	—
Commercial real estate owner occupied		432		—		439		—
Commercial real estate non-owner occupied		529		—		550		—
Tax exempt		—		—		—		—
Commercial and industrial		222		1,610		91		116
Residential real estate		4,066		—		4,385		—
Home equity		933		—		963		—
Consumer other		4		—		5		—
Total	$	6,186	$	1,610	$	6,433	$	116

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 March 31, 2023		Three Months Ended March 31, 2022
Beginning Balance	$	3,910	$	2,152
Provision for credit losses		(175)		30
Ending Balance	$	3,735	$	2,182