Loans and Related Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 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
September 30, 2023
Individually evaluated for impairment	$	—	$	—	$	—	$	2,314	$	—	$	2,314
Collectively evaluated for impairment		491,284		79,796		254,650		489,372		62,603		1,377,705
Total loans	$	491,284	$	79,796	$	254,650	$	491,686	$	62,603	$	1,380,019
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
September 30, 2023
Commercial real estate:
Non-owner-occupied	$	293,932	$	—	$	229	$	—	$	229	$	—	$	294,161
All other CRE		196,524		599		—		—		599		—		197,123
Acquisition and development:
1-4 family residential construction		17,527		—		—		—		—		—		17,527
All other A&D		62,149		—		—		—		—		120		62,269
Commercial and industrial		254,193		75		382		—		457		—		254,650
Residential mortgage:
Residential mortgage - term		425,383		214		1,109		—		1,323		3,011		429,717
Residential mortgage - home equity		61,299		288		22		86		396		274		61,969
Consumer		61,786		541		143		59		743		74		62,603
Total	$	1,372,793	$	1,717	$	1,885	$	145	$	3,747	$	3,479	$	1,380,019
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
September 30, 2023
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		5,038		1,065		3,477		6,642		924		—		17,146
Total ACL	$	5,038	$	1,065	$	3,477	$	6,642	$	924	$	—	$	17,146
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

	September 30, 2023
(dollars in thousands)	Real Estate		Non-Accrual Loans with No Allowance
Residential mortgage	$	2,314	$	2,314
Total Loans	$	2,314	$	2,314

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
September 30, 2023
Commercial real estate
Non-owner-occupied	$	—	$	—	$	—	$	—	$	—
All other CRE		—		—		—		—		—
Acquisition and development
1-4 family residential construction		—		—		—		—		—
All other A&D		—		—		—		—		—
Commercial and industrial		—		—		—		—		—
Residential mortgage
Residential mortgage – term		—		—		2,314		2,314		—
Residential mortgage – home equity		—		—		—		—		—
Consumer		—		—		—		—		—
Total impaired loans	$	—	$	—	$	2,314	$	2,314	$	—
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 nine- and three-month periods ended September 30, 2023 and 2022:

Nine 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)		—		(301)		(55)		(681)		—		(1,124)
Recoveries collected		5		8		176		56		153		—		398
Credit loss (credit)/expense		(82)		93		(577)		1,369		367		—		1,170
ACL balance at September 30, 2023	$	5,038	$	1,065	$	3,477	$	6,642	$	924	$	—	$	17,146
ALL balance at January 1, 2022	$	6,032	$	2,615	$	2,460	$	3,484	$	934	$	430	$	15,955
Loan Charge-offs		—		(20)		(134)		(34)		(726)		—		(914)
Recoveries collected		1		21		92		172		117		—		403
Loan loss expense/(credit)		323		(1,117)		984		(645)		552		—		97
ALL balance at September 30, 2022	$	6,356	$	1,499	$	3,402	$	2,977	$	877	$	430	$	15,541

Three months ended (in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Unallocated		Total
ACL balance at July 1, 2023	$	4,946	$	1,134	$	3,549	$	6,417	$	859	$	—	$	16,905
Loan charge-offs		—		—		(135)		(31)		(163)		—		(329)
Recoveries collected		—		1		167		20		60		—		248
Credit loss expense/(credit)		92		(70)		(104)		236		168		—		322
ACL balance at September 30, 2023	$	5,038	$	1,065	$	3,477	$	6,642	$	924	$	—	$	17,146
ALL balance at July 1, 2022	$	6,220	$	2,172	$	2,830	$	3,112	$	973	$	430	$	15,737
Charge-offs		—		(20)		(82)		(1)		(181)		—		(284)
Recoveries		—		1		83		71		41		—		196
Loan loss expense/(credit)		136		(654)		571		(205)		44		—		(108)
ALL balance at September 30, 2022	$	6,356	$	1,499	$	3,402	$	2,977	$	877	$	430	$	15,541

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
September 30, 2023
Commercial real estate:
Non-owner-occupied
Pass	$	20,580	$	66,381	$	30,726	$	54,643	$	39,758	$	63,496	$	1,111	$	276,695
Special Mention		—		—		—		—		—		6,098		—		6,098
Substandard		—		—		—		—		—		11,368		—		11,368
Total non-owner occupied		20,580		66,381		30,726		54,643		39,758		80,962		1,111		294,161
Current period gross charge-offs		—		—		—		—		—		87		—		87
All other CRE
Pass		21,848		27,791		25,848		22,666		24,603		65,306		4,057		192,119
Special Mention		—		—		—		—		—		—		1,095		1,095
Substandard		—		—		—		—		1,871		1,438		600		3,909
Total all other CRE		21,848		27,791		25,848		22,666		26,474		66,744		5,752		197,123
Current period gross charge-offs		—		—		—		—		—		—		—		—
Acquisition and development:
1-4 family residential construction
Pass		7,716		9,311		—		—		—		—		500		17,527
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total acquisition and development		7,716		9,311		—		—		—		—		500		17,527
Current period gross charge-offs		—		—		—		—		—		—		—		—
All other A&D
Pass		14,592		23,197		3,994		3,101		2,512		10,631		4,122		62,149
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		120		—		120
Total all other A&D		14,592		23,197		3,994		3,101		2,512		10,751		4,122		62,269
Current period gross charge-offs		—		—		—		—		—		—		—		—
Commercial and industrial:
Pass		28,861		71,185		25,176		12,868		9,915		12,253		71,371		231,629
Special Mention		—		—		—		—		—		329		562		891
Substandard		—		8,923		2,022		6,885		117		842		3,341		22,130
Total commercial and industrial		28,861		80,108		27,198		19,753		10,032		13,424		75,274		254,650
Current period gross charge-offs		100		—		35		166		—		—		—		301
Residential mortgage:
Residential mortgage - term
Pass		43,211		87,386		91,415		40,083		25,855		132,866		1,723		422,539
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		7,120		58		7,178
Total residential mortgage - term		43,211		87,386		91,415		40,083		25,855		139,986		1,781		429,717
Current period gross charge-offs		—		—		—		—		—		13		—		13
Residential mortgage - home equity
Pass		1,194		5,131		887		490		296		523		52,821		61,342
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		40		—		17		570		627
Total residential mortgage - home equity		1,194		5,131		887		530		296		540		53,391		61,969
Current period gross charge-offs		—		—		—		—		—		42		—		42
Consumer:
Pass		15,997		11,773		7,254		2,503		718		21,278		2,807		62,330
Special Mention		—		—		—		—		—		—		—		—
Substandard		48		35		139		25		7		7		12		273
Total consumer		16,045		11,808		7,393		2,528		725		21,285		2,819		62,603
Current period gross charge-offs		158		184		55		3		—		281		—		681
Total Portfolio Loans
Pass		153,999		302,155		185,300		136,354		103,657		306,353		138,512		1,326,330
Special Mention		—		—		—		—		—		6,427		1,657		8,084
Substandard		48		8,958		2,161		6,950		1,995		20,912		4,581		45,605
Total Portfolio Loans	$	154,047	$	311,113	$	187,461	$	143,304	$	105,652	$	333,692	$	144,750	$	1,380,019
Current YTD Period:
Current period gross charge-offs	$	258	$	184	$	90	$	169	$	—	$	423	$	—	$	1,124

(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
September 30, 2023
Commercial real estate:
Non-owner-occupied
Performing	$	20,580	$	66,381	$	30,726	$	54,643	$	39,758	$	80,962	$	1,111	$	294,161
Nonperforming		—		—		—		—		—		—		—		—
Total non-owner occupied		20,580		66,381		30,726		54,643		39,758		80,962		1,111		294,161
All other CRE
Performing		21,848		27,791		25,848		22,666		26,474		66,744		5,752		197,123
Nonperforming		—		—		—		—		—		—		—		—
Total all other CRE		21,848		27,791		25,848		22,666		26,474		66,744		5,752		197,123
Acquisition and development:
1-4 family residential construction
Performing		7,716		9,311		—		—		—		—		500		17,527
Nonperforming		—		—		—		—		—		—		—		—
Total acquisition and development		7,716		9,311		—		—		—		—		500		17,527
All other A&D
Performing		14,592		23,197		3,994		3,101		2,512		10,631		4,122		62,149
Nonperforming		—		—		—		—		—		120		—		120
Total all other A&D		14,592		23,197		3,994		3,101		2,512		10,751		4,122		62,269
Commercial and industrial:
Performing		28,861		80,108		27,198		19,753		10,032		13,424		75,274		254,650
Nonperforming		—		—		—		—		—		—		—		—
Total commercial and industrial		28,861		80,108		27,198		19,753		10,032		13,424		75,274		254,650
Residential mortgage:
Residential mortgage - term
Performing		43,211		87,386		91,415		40,083		25,755		137,107		1,749		426,706
Nonperforming		—		—		—		—		100		2,879		32		3,011
Total residential mortgage - term		43,211		87,386		91,415		40,083		25,855		139,986		1,781		429,717
Residential mortgage - home equity
Performing		1,194		5,131		887		490		296		524		53,087		61,609
Nonperforming		—		—		—		40		—		16		304		360
Total residential mortgage - home equity		1,194		5,131		887		530		296		540		53,391		61,969
Consumer:
Performing		16,045		11,793		7,384		2,504		725		21,200		2,819		62,470
Nonperforming		—		15		9		24		—		85		—		133
Total consumer		16,045		11,808		7,393		2,528		725		21,285		2,819		62,603
Total Portfolio Loans
Performing		154,047		311,098		187,452		143,240		105,552		330,592		144,414		1,376,395
Nonperforming		—		15		9		64		100		3,100		336		3,624
Total Portfolio Loans	$	154,047	$	311,113	$	187,461	$	143,304	$	105,652	$	333,692	$	144,750	$	1,380,019

(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