Loans and Related Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 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
June 30, 2023
Individually evaluated for impairment	$	—	$	—	$	—	$	2,151	$	—	$	2,151
Collectively evaluated for impairment		483,485		79,003		249,683		473,389		62,327		1,347,887
Total loans	$	483,485	$	79,003	$	249,683	$	475,540	$	62,327	$	1,350,038
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
June 30, 2023
Commercial real estate:
Non owner-occupied	$	284,580	$	—	$	—	$	—	$	—	$	—	$	284,580
All other CRE		198,905		—		—		—		—		—		198,905
Acquisition and development:
1-4 family residential construction		20,228		—		—		—		—		—		20,228
All other A&D		58,647		—		—		—		—		128		58,775
Commercial and industrial		249,425		177		81		—		258		—		249,683
Residential mortgage:
Residential mortgage - term		411,033		428		704		45		1,177		2,518		414,728
Residential mortgage - home equity		60,227		241		—		18		259		326		60,812
Consumer		61,591		498		141		97		736		—		62,327
Total	$	1,344,636	$	1,344	$	926	$	160	$	2,430	$	2,972	$	1,350,038
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
June 30, 2023
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		4,946		1,134		3,549		6,417		859		—		16,905
Total ACL	$	4,946	$	1,134	$	3,549	$	6,417	$	859	$	—	$	16,905
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

	June 30, 2023
(dollars in thousands)	Real Estate		Non-Accrual Loans with No Allowance
Residential mortgage	$	2,151	$	2,151
Total Loans	$	2,151	$	2,151

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 six- and three- month periods ended June 30, 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
Loan Charge-offs		(87)		—		(166)		(24)		(518)		—		(795)
Recoveries collected		5		7		9		36		93		—		150
Credit Loss Expense		(174)		163		(473)		1,133		199		—		848
ACL balance at June 30, 2023	$	4,946	$	1,134	$	3,549	$	6,417	$	859	$	—	$	16,905
ALL balance at January 1, 2022	$	6,032	$	2,615	$	2,460	$	3,484	$	934	$	430	$	15,955
Loan Charge-offs		—		—		(52)		(33)		(545)		—		(630)
Recoveries collected		1		20		9		101		76		—		207
Credit Loss Expense		187		(463)		413		(440)		508		—		205
ALL balance at June 30, 2022	$	6,220	$	2,172	$	2,830	$	3,112	$	973	$	430	$	15,737

Three months ended (in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Unallocated		Total
ACL balance at April 1, 2023	$	4,862	$	1,103	$	3,755	$	6,324	$	827	$	—	$	16,871
Loan Charge-offs		(87)		—		(166)		(18)		(185)		—		(456)
Recoveries collected		—		2		5		18		31		—		56
Credit Loss Expense		171		29		(45)		93		186		—		434
ACL balance at June 30, 2023	$	4,946	$	1,134	$	3,549	$	6,417	$	859	$	—	$	16,905
ALL balance at April 1, 2022	$	5,922	$	2,542	$	2,513	$	2,945	$	940	$	430	$	15,292
Charge-offs		—		—		(4)		(24)		(299)		—		(327)
Recoveries		—		2		6		86		54		—		148
Credit Loss Expense		298		(372)		315		105		278		—		624
ALL balance at June 30, 2022	$	6,220	$	2,172	$	2,830	$	3,112	$	973	$	430	$	15,737

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
June 30, 2023
Commercial real estate:
Non owner-occupied
Pass	$	19,702	$	66,666	$	31,131	$	47,947	$	40,130	$	60,486	$	807	$	266,869
Special Mention		—		—		—		—		—		6,167		—		6,167
Substandard		—		—		—		—		—		11,544		—		11,544
Total non-owner occupied		19,702		66,666		31,131		47,947		40,130		78,197		807		284,580
Current period gross charge-offs		—		—		—		—		—		87		—		87
All other CRE
Pass		16,648		28,223		25,694		21,675		25,017		70,917		4,490		192,664
Special Mention		—		—		—		—		—		—		1,203		1,203
Substandard		—		—		1,080		—		1,888		1,471		599		5,038
Total all other CRE		16,648		28,223		26,774		21,675		26,905		72,388		6,292		198,905
Current period gross charge-offs		—		—		—		—		—		—		—		—
Acquisition and development:
1-4 family residential construction
Pass		3,905		12,561		1,198		—		—		195		2,369		20,228
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total acquisition and development		3,905		12,561		1,198		—		—		195		2,369		20,228
Current period gross charge-offs		—		—		—		—		—		—		—		—
All other A&D
Pass		6,966		20,364		5,072		9,427		1,328		11,501		3,989		58,647
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		128		—		128
Total all other A&D		6,966		20,364		5,072		9,427		1,328		11,629		3,989		58,775
Current period gross charge-offs		—		—		—		—		—		—		—		—
Commercial and industrial:
Pass		20,732		73,589		26,631		13,851		10,735		12,981		69,070		227,589
Special Mention		—		—		—		—		—		334		844		1,178
Substandard		—		8,923		2,140		6,896		135		876		1,946		20,916
Total commercial and industrial		20,732		82,512		28,771		20,747		10,870		14,191		71,860		249,683
Current period gross charge-offs		—		—		—		166		—		—		—		166
Residential mortgage:
Residential mortgage - term
Pass		29,970		80,804		90,055		40,502		26,163		138,450		2,004		407,948
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		926		156		101		5,557		40		6,780
Total residential mortgage - term		29,970		80,804		90,981		40,658		26,264		144,007		2,044		414,728
Current period gross charge-offs		—		—		—		—		—		13		—		13
Residential mortgage - home equity
Pass		1,060		5,301		909		505		307		571		51,535		60,188
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		41		—		19		564		624
Total residential mortgage - home equity		1,060		5,301		909		546		307		590		52,099		60,812
Current period gross charge-offs		—		—		—		—		—		11		—		11
Consumer:
Pass		12,170		13,199		8,094		2,895		930		22,045		2,733		62,066
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		56		163		24		7		5		6		261
Total consumer		12,170		13,255		8,257		2,919		937		22,050		2,739		62,327
Current period gross charge-offs		86		141		272		2		—		17		—		518
Total Portfolio Loans
Pass		111,153		300,707		188,784		136,802		104,610		317,146		136,997		1,296,199
Special Mention		—		—		—		—		—		6,501		2,047		8,548
Substandard		—		8,979		4,309		7,117		2,131		19,600		3,155		45,291
Total Portfolio Loans	$	111,153	$	309,686	$	193,093	$	143,919	$	106,741	$	343,247	$	142,199	$	1,350,038
Current YTD Period:
Current period gross charge-offs	$	86	$	141	$	272	$	168	$	—	$	128	$	—	$	795

(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 residential 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 residential 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
June 30, 2023
Commercial real estate:
Non owner-occupied
Performing	$	19,702	$	66,666	$	31,131	$	47,947	$	40,130	$	78,197	$	807	$	284,580
Nonperforming		—		—		—		—		—		—		—		—
Total non-owner occupied		19,702		66,666		31,131		47,947		40,130		78,197		807		284,580
All other CRE
Performing		16,648		28,223		26,774		21,675		26,905		72,388		6,292		198,905
Nonperforming		—		—		—		—		—		—		—		—
Total all other CRE		16,648		28,223		26,774		21,675		26,905		72,388		6,292		198,905
Acquisition and development:
1-4 family residential construction
Performing		3,905		12,561		1,198		—		—		195		2,369		20,228
Nonperforming		—		—		—		—		—		—		—		—
Total acquisition and development		3,905		12,561		1,198		—		—		195		2,369		20,228
All other A&D
Performing		6,966		20,364		5,072		9,427		1,328		11,501		3,989		58,647
Nonperforming		—		—		—		—		—		128		—		128
Total all other A&D		6,966		20,364		5,072		9,427		1,328		11,629		3,989		58,775
Commercial and industrial:
Performing		20,732		82,512		28,771		20,747		10,870		14,191		71,860		249,683
Nonperforming		—		—		—		—		—		—		—		—
Total commercial and industrial		20,732		82,512		28,771		20,747		10,870		14,191		71,860		249,683
Residential mortgage:
Residential mortgage - term
Performing		29,970		80,804		90,981		40,658		26,163		141,559		2,030		412,165
Nonperforming		—		—		—		—		101		2,448		14		2,563
Total residential mortgage - term		29,970		80,804		90,981		40,658		26,264		144,007		2,044		414,728
Residential mortgage - home equity
Performing		1,060		5,301		909		505		307		571		51,814		60,467
Nonperforming		—		—		—		41		—		19		285		345
Total residential mortgage - home equity		1,060		5,301		909		546		307		590		52,099		60,812
Consumer:
Performing		12,170		13,255		8,234		2,919		937		21,981		2,735		62,231
Nonperforming		—		—		23		—		—		69		4		96
Total consumer		12,170		13,255		8,257		2,919		937		22,050		2,739		62,327
Total Portfolio Loans
Performing		111,153		309,686		193,070		143,878		106,640		340,583		141,896		1,346,906
Nonperforming		—		—		23		41		101		2,664		303		3,132
Total Portfolio Loans	$	111,153	$	309,686	$	193,093	$	143,919	$	106,741	$	343,247	$	142,199	$	1,350,038

(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 residential 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 residential 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