Loans and Related Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2023

Loans And Related Allowances For Loan Losses [Abstract]

Loan Portfolio Segments

(in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Total
March 31, 2023
Individually evaluated for impairment	$	—	$	—	$	—	$	2,299	$	—	$	2,299
Collectively evaluated for impairment		453,356		76,980		241,959		453,899		60,587		1,286,781
Total loans	$	453,356	$	76,980	$	241,959	$	456,198	$	60,587	$	1,289,080
December 31, 2022
Individually evaluated for impairment	$	2,262	$	356	$	—	$	3,880	$	—	$	6,498
Collectively evaluated for impairment		456,569		70,240		245,396		440,531		60,260		1,272,996
Total loans	$	458,831	$	70,596	$	245,396	$	444,411	$	60,260	$	1,279,494

Loan Portfolio Summarized by the Past Due Status

(in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days+ Past Due		Total Past Due and Accruing		Non- Accrual		Total Loans
March 31, 2023
Commercial real estate:
Non owner-occupied	$	267,244	$	—	$	—	$	—	$	—	$	85	$	267,329
All other CRE		186,027		—		—		—		—		—		186,027
Acquisition and development:
1-4 family residential construction		19,938		—		—		—		—		—		19,938
All other A&D		56,907		—		—		—		—		135		57,042
Commercial and industrial		241,940		19		—		—		19		—		241,959
Residential mortgage:
Residential mortgage - term		392,659		1,031		157		26		1,214		2,678		396,551
Residential mortgage - home equity		58,934		345		10		20		375		338		59,647
Consumer		60,021		463		40		41		544		22		60,587
Total	$	1,283,670	$	1,858	$	207	$	87	$	2,152	$	3,258	$	1,289,080
December 31, 2022
Commercial real estate:
Non owner-occupied	$	269,971	$	—	$	—	$	—	$	—	$	87	$	270,058
All other CRE		188,715		—		—		—		—		58		188,773
Acquisition and development:
1-4 family residential construction		19,637		—		—		—		—		—		19,637
All other A&D		50,813		—		—		—		—		146		50,959
Commercial and industrial		245,342		54		—		—		54		—		245,396
Residential mortgage:
Residential mortgage - term		380,502		31		722		239		992		2,893		384,387
Residential mortgage - home equity		59,223		399		48		43		490		311		60,024
Consumer		59,789		363		83		25		471		—		60,260
Total	$	1,273,992	$	847	$	853	$	307	$	2,007	$	3,495	$	1,279,494

Primary Segments of the Allowance for Loan Loss

(in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Unallocated		Total
March 31, 2023
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment	$	4,862	$	1,103	$	3,755	$	6,324	$	827	$	—	$	16,871
Total ACL	$	4,862	$	1,103	$	3,755	$	6,324	$	827	$	—	$	16,871
December 31, 2022
Individually evaluated for impairment	$	—	$	—	$	—	$	26	$	—	$	—	$	26
Collectively evaluated for impairment	$	6,345	$	979	$	2,845	$	3,134	$	877	$	430	$	14,610
Total ALL	$	6,345	$	979	$	2,845	$	3,160	$	877	$	430	$	14,636

Schedule of amortized cost basis of collateral-dependent individually evaluated loans

	March 31, 2023
(dollars in thousands)	Real Estate		Non-Accrual Loans with No Allowance
Commercial real estate	$	—	$	—
Acquisition and development		—		—
Commercial and industrial		—		—
Residential mortgage		2,299		2,299
Consumer		—		—
Total Loans	$	2,299	$	2,299

Impaired Loans and Related Interest Income by Loan Portfolio Class

	Impaired Loans with Specific Allowance				Impaired Loans with No Specific Allowance		Total Impaired Loans
(in thousands)	Recorded Investment		Related Allowances		Recorded Investment		Recorded Investment (1)		Unpaid Principal Balance
December 31, 2022
Commercial real estate
Non owner-occupied	$	—	$	—	$	187	$	187	$	—
All other CRE		—		—		2,075		2,075		—
Acquisition and development
1-4 family residential construction		—		—		210		210		—
All other A&D		—		—		146		146		109
Commercial and industrial		—		—		—		—		—
Residential mortgage
Residential mortgage – term		345		26		3,225		3,570		41
Residential mortgage – home equity		—		—		310		310		—
Consumer		—		—		—		—		—
Total impaired loans	$	345	$	26	$	6,153	$	6,498	$	150

(1) Recorded investment consists of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and cost.

Allowance for Loan Losses Summarized by Loan Portfolio Segments

The following tables present the activity in the ACL and ALL for the three month period ended March 31, 2023 and 2022:

Three months ended (in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Unallocated		Total
Beginning balance at January 1, 2023 prior to adoption of ASC 326	$	6,345	$	979	$	2,845	$	3,160	$	877	$	430	$	14,636
Impact of adopting ASC 326		(1,143)		(15)		1,334		2,112		208		(430)		2,066
Credit Loss Expense		(345)		134		(428)		1,040		13		—		414
Loan Charge-offs		—		—		—		(6)		(333)		—		(339)
Recoveries collected		5		5		4		18		62		—		94
ACL balance at March 31, 2023	$	4,862	$	1,103	$	3,755	$	6,324	$	827	$	—	$	16,871
ALL balance at January 1, 2022	$	6,032	$	2,615	$	2,460	$	3,484	$	934	$	430	$	15,955
Provision		(111)		(91)		98		(545)		230		—		(419)
Loan Charge-offs		—		—		(48)		(9)		(246)		—		(303)
Recoveries collected		1		18		3		15		22		—		59
ALL balance at March 31, 2022	$	5,922	$	2,542	$	2,513	$	2,945	$	940	$	430	$	15,292

Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating

(in thousands)	2023		2022		2021		2020		2019		2018 and Prior		Revolving		Total Portfolio Loans
March 31, 2023
Commercial real estate:
Non owner-occupied
Pass	$	694	$	66,354	$	31,448	$	48,257	$	40,497	$	60,520	$	1,558	$	249,328
Special Mention		—		—		—		—		—		6,236		—		6,236
Substandard		—		—		—		—		—		11,765		—		11,765
Total non-owner occupied		694		66,354		31,448		48,257		40,497		78,521		1,558		267,329
Current period gross charge-offs		—		—		—		—		—		—		—		—
All other CRE
Pass		2,220		25,934		26,430		22,074		26,326		73,298		4,133		180,415
Special Mention		—		—		1,101		—		—		—		—		1,101
Substandard		—		—		—		—		2,380		1,532		599		4,511
Total all other CRE		2,220		25,934		27,531		22,074		28,706		74,830		4,732		186,027
Current period gross charge-offs		—		—		—		—		—		—		—		—
Acquisition and development:
1-4 family residential construction
Pass		880		16,576		1,148		—		—		202		1,132		19,938
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total acquisition and development		880		16,576		1,148		—		—		202		1,132		19,938
Current period gross charge-offs		—		—		—		—		—		—		—		—
All other A&D
Pass		3,932		22,754		4,482		9,288		1,387		12,946		2,118		56,907
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		135		—		135
Total all other A&D		3,932		22,754		4,482		9,288		1,387		13,081		2,118		57,042
Current period gross charge-offs		—		—		—		—		—		—		—		—
Commercial and industrial:
Pass		12,709		75,378		28,492		14,767		11,648		13,811		60,526		217,331
Special Mention		—		—		2,339		—		—		337		2,374		5,050
Substandard		—		8,923		77		7,122		154		911		2,391		19,578
Total commercial and industrial		12,709		84,301		30,908		21,889		11,802		15,059		65,291		241,959
Current period gross charge-offs		—		—		—		—		—		—		—		—
Residential mortgage:
Residential mortgage - term
Pass		11,844		69,800		91,693		42,233		26,887		145,350		2,105		389,912
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		932		15		234		5,415		43		6,639
Total residental mortgage - term		11,844		69,800		92,625		42,248		27,121		150,765		2,148		396,551
Current period gross charge-offs		—		—		—		—		—		6		—		6
Residential mortgage - home equity
Pass		658		5,410		931		523		316		553		50,617		59,008
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		43		—		58		538		639
Total residental mortgage - home equity		658		5,410		931		566		316		611		51,155		59,647
Current period gross charge-offs		—		—		—		—		—		—		—		—
Consumer:
Pass		5,519		14,850		9,006		3,355		1,215		23,813		2,617		60,375
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		17		151		25		8		6		5		212
Total consumer		5,519		14,867		9,157		3,380		1,223		23,819		2,622		60,587
Current period gross charge-offs		46		105		177		1		—		4		—		333
Total Portfolio Loans
Pass		38,456		297,056		193,630		140,497		108,276		330,493		124,806		1,233,214
Special Mention		—		—		3,440		—		—		6,573		2,374		12,387
Substandard		—		8,940		1,160		7,205		2,776		19,822		3,576		43,479
Total Portfolio Loans	$	38,456	$	305,996	$	198,230	$	147,702	$	111,052	$	356,888	$	130,756	$	1,289,080
Current YTD Period:
Current period gross charge-offs		46		105		177		1		—		10		—		339

(in thousands)	2022		2021		2020		2019		2018		2017 and Prior		Revolving		Total Portfolio Loans
December 31, 2022
Commercial real estate:
Non owner-occupied
Pass	$	67,429	$	31,710	$	48,421	$	41,221	$	19,414	$	42,069	$	1,570	$	251,834
Special Mention		—		—		—		—		—		6,289		—		6,289
Substandard		—		—		—		—		—		11,935		—		11,935
Total non-owner occupied		67,429		31,710		48,421		41,221		19,414		60,293		1,570		270,058
Current period gross charge-offs		—		—		—		—		—		—		—		—
All other CRE
Pass		24,655		26,947		22,906		27,213		8,873		67,691		4,790		183,075
Special Mention		—		1,111		—		—		—		—		—		1,111
Substandard		—		—		—		3,006		—		357		1,224		4,587
Total all other CRE		24,655		28,058		22,906		30,219		8,873		68,048		6,014		188,773
Current period gross charge-offs		—		—		—		—		—		—		—		—
Acquisition and development:
1-4 family residential construction
Pass		15,629		1,453		151		—		—		210		2,194		19,637
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total acquisition and development		15,629		1,453		151		—		—		210		2,194		19,637
Current period gross charge-offs		—		—		—		—		—		20		—		20
All other A&D
Pass		18,733		4,979		9,755		1,408		558		12,961		2,419		50,813
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		146		—		146
Total all other A&D		18,733		4,979		9,755		1,408		558		13,107		2,419		50,959
Current period gross charge-offs		—		—		—		—		—		—		—		—
Commercial and industrial:
Pass		83,608		30,451		15,982		12,707		5,013		9,528		63,668		220,957
Special Mention		—		2,555		—		—		—		338		2,134		5,027
Substandard		8,923		—		7,167		173		634		311		2,204		19,412
Total commercial and industrial		92,531		33,006		23,149		12,880		5,647		10,177		68,006		245,396
Current period gross charge-offs		—		97		34		3		—		—		—		134
Residential mortgage:
Residential mortgage - term
Pass		64,930		93,665		42,784		27,120		14,132		133,397		2,306		378,334
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		16		237		143		5,634		23		6,053
Total residental mortgage - term		64,930		93,665		42,800		27,357		14,275		139,031		2,329		384,387
Current period gross charge-offs		—		—		—		—		—		28		—		28
Residential mortgage - home equity
Pass		5,739		957		538		328		97		478		51,232		59,369
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		44		—		21		40		550		655
Total residental mortgage - home equity		5,739		957		582		328		118		518		51,782		60,024
Current period gross charge-offs		—		—		—		—		12		6		—		18
Consumer:
Pass		16,748		10,495		3,845		1,596		687		24,096		2,654		60,121
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		92		27		9		7		—		4		139
Total consumer		16,748		10,587		3,872		1,605		694		24,096		2,658		60,260
Current period gross charge-offs		36		494		18		37		11		40		—		636
Total Portfolio Loans
Pass		297,471		200,657		144,382		111,593		48,774		290,430		130,833		1,224,140
Special Mention		—		3,666		—		—		—		6,627		2,134		12,427
Substandard		8,923		92		7,254		3,425		805		18,423		4,005		42,927
Total Portfolio Loans	$	306,394	$	204,415	$	151,636	$	115,018	$	49,579	$	315,480	$	136,972	$	1,279,494
Current YTD Period:
Current period gross charge-offs	$	36	$	591	$	52	$	40	$	23	$	94	$	—	$	836

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past.

The following tables present loan balances by year of origination segregated by performing and non-performing loans for the periods presented:

(in thousands)	2023		2022		2021		2020		2019		2018 and Prior		Revolving		Total Portfolio Loans
March 31, 2023
Commercial real estate:
Non owner-occupied
Performing	$	694	$	66,354	$	31,448	$	48,257	$	40,497	$	78,436	$	1,558		267,244
Nonperforming		—		—		—		—		—		85		—		85
Total non-owner occupied		694		66,354		31,448		48,257		40,497		78,521		1,558		267,329
All other CRE
Performing		2,220		25,934		27,531		22,074		28,706		74,830		4,732		186,027
Nonperforming		—		—		—		—		—		—		—		—
Total all other CRE		2,220		25,934		27,531		22,074		28,706		74,830		4,732		186,027
Acquisition and development:
1-4 family residential construction
Performing		880		16,576		1,148		—		—		202		1,132		19,938
Nonperforming		—		—		—		—		—		—		—		—
Total acquisition and development		880		16,576		1,148		—		—		202		1,132		19,938
All other A&D
Performing		3,932		22,754		4,482		9,288		1,387		12,946		2,118		56,907
Nonperforming		—		—		—		—		—		135		—		135
Total all other A&D		3,932		22,754		4,482		9,288		1,387		13,081		2,118		57,042
Commercial and industrial:
Performing		12,709		84,301		30,908		21,889		11,802		15,059		65,291		241,959
Nonperforming		—		—		—		—		—		—		—		—
Total commercial and industrial		12,709		84,301		30,908		21,889		11,802		15,059		65,291		241,959
Residential mortgage:
Residential mortgage - term
Performing		11,844		69,800		92,625		42,248		26,887		148,332		2,111		393,847
Nonperforming		—		—		—		—		234		2,433		37		2,704
Total residental mortgage - term		11,844		69,800		92,625		42,248		27,121		150,765		2,148		396,551
Residential mortgage - home equity
Performing		658		5,410		931		523		316		552		50,899		59,289
Nonperforming		—		—		—		43		—		59		256		358
Total residental mortgage - home equity		658		5,410		931		566		316		611		51,155		59,647
Consumer:
Performing		5,519		14,867		9,157		3,380		1,223		23,757		2,621		60,524
Nonperforming		—		—		—		—		—		62		1		63
Total consumer		5,519		14,867		9,157		3,380		1,223		23,819		2,622		60,587
Total Portfolio Loans
Performing		38,456		305,996		198,230		147,659		110,818		354,114		130,462		1,285,735
Nonperforming		—		—		—		43		234		2,774		294		3,345
Total Portfolio Loans	$	38,456	$	305,996	$	198,230	$	147,702	$	111,052	$	356,888	$	130,756	$	1,289,080

(in thousands)	2022		2021		2020		2019		2018		2017 and Prior		Revolving		Total Portfolio Loans
December 31, 2022
Commercial real estate:
Non owner-occupied
Performing	$	67,429	$	31,710	$	48,421	$	41,221	$	19,414	$	60,206	$	1,570		269,971
Nonperforming		—		—		—		—		—		87		—		87
Total non-owner occupied		67,429		31,710		48,421		41,221		19,414		60,293		1,570		270,058
All other CRE
Performing		24,655		28,058		22,906		30,219		8,873		67,990		6,014		188,715
Nonperforming		—		—		—		—		—		58		—		58
Total all other CRE		24,655		28,058		22,906		30,219		8,873		68,048		6,014		188,773
Acquisition and development:
1-4 family residential construction
Performing		15,629		1,453		151		—		—		210		2,194		19,637
Nonperforming		—		—		—		—		—		—		—		—
Total acquisition and development		15,629		1,453		151		—		—		210		2,194		19,637
All other A&D
Performing		18,733		4,979		9,755		1,408		558		12,962		2,419		50,814
Nonperforming		—		—		—		—		—		145		—		145
Total all other A&D		18,733		4,979		9,755		1,408		558		13,107		2,419		50,959
Commercial and industrial:
Performing		92,531		33,006		23,149		12,880		5,647		10,177		68,006		245,396
Nonperforming		—		—		—		—		—		—		—		—
Total commercial and industrial		92,531		33,006		23,149		12,880		5,647		10,177		68,006		245,396
Residential mortgage:
Residential mortgage - term
Performing		64,930		93,665		42,800		27,120		14,198		136,228		2,313		381,254
Nonperforming		—		—		—		237		77		2,803		16		3,133
Total residental mortgage - term		64,930		93,665		42,800		27,357		14,275		139,031		2,329		384,387
Residential mortgage - home equity
Performing		5,739		957		538		328		115		478		51,515		59,670
Nonperforming		—		—		44		—		3		40		267		354
Total residental mortgage - home equity		5,739		957		582		328		118		518		51,782		60,024
Consumer:
Performing		16,748		10,581		3,872		1,605		694		24,077		2,658		60,235
Nonperforming		—		6		—		—		—		19		—		25
Total consumer		16,748		10,587		3,872		1,605		694		24,096		2,658		60,260
Total Portfolio Loans
Performing		306,394		204,409		151,592		114,781		49,499		312,328		136,689		1,275,692
Nonperforming		—		6		44		237		80		3,152		283		3,802
Total Portfolio Loans	$	306,394	$	204,415	$	151,636	$	115,018	$	49,579	$	315,480	$	136,972	$	1,279,494