Loans and Related Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2024

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, 2024
Individually evaluated for impairment	$	599	$	—	$	6,175	$	1,995	$	—	$	8,769
Collectively evaluated for impairment		500,417		88,214		259,496		509,114		56,965		1,414,206
Total loans	$	501,016	$	88,214	$	265,671	$	511,109	$	56,965	$	1,422,975
December 31, 2023
Individually evaluated for impairment	$	826	$	—	$	—	$	2,137	$	—	$	2,963
Collectively evaluated for impairment		492,877		77,060		274,604		497,734		61,429		1,403,704
Total loans	$	493,703	$	77,060	$	274,604	$	499,871	$	61,429	$	1,406,667

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, 2024
Commercial real estate:
Non-owner-occupied	$	295,647	$	—	$	—	$	—	$	—	$	—	$	295,647
All other CRE		204,520		165		85		—		250		599		205,369
Acquisition and development:
1-4 family residential construction		17,489		—		—		—		—		—		17,489
All other A&D		70,628		—		—		—		—		97		70,725
Commercial and industrial		259,155		191		139		1		331		6,185		265,671
Residential mortgage:
Residential mortgage - term		444,814		44		1,028		484		1,556		2,339		448,709
Residential mortgage - home equity		61,740		436		81		14		531		129		62,400
Consumer		55,890		581		378		27		986		89		56,965
Total	$	1,409,883	$	1,417	$	1,711	$	526	$	3,654	$	9,438	$	1,422,975
December 31, 2023
Commercial real estate:
Non-owner-occupied	$	296,343	$	—	$	—	$	—	$	—	$	227	$	296,570
All other CRE		196,123		411		—		—		411		599		197,133
Acquisition and development:
1-4 family residential construction		18,224		—		—		—		—		—		18,224
All other A&D		58,723		—		—		—		—		113		58,836
Commercial and industrial		274,465		120		19		—		139		—		274,604
Residential mortgage:
Residential mortgage - term		433,878		130		717		384		1,231		2,720		437,829
Residential mortgage - home equity		61,021		520		158		75		753		268		62,042
Consumer		60,576		463		277		84		824		29		61,429
Total	$	1,399,353	$	1,644	$	1,171	$	543	$	3,358	$	3,956	$	1,406,667

Primary Segments of the Allowance for Loan Loss

(in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Total
June 30, 2024
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		4,852		992		3,964		7,162		953		17,923
Total ACL	$	4,852	$	992	$	3,964	$	7,162	$	953	$	17,923
December 31, 2023
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		5,120		940		3,717		6,774		929		17,480
Total ACL	$	5,120	$	940	$	3,717	$	6,774	$	929	$	17,480

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

	June 30, 2024
(in thousands)	Real Estate			Other Collateral	Non-Accrual Loans with No Allowance
Commercial real estate	$	599	$	—	$	599
Commercial and industrial		—		6,175		6,175
Residential mortgage		1,995		—		1,995
Total Loans	$	2,594	$	6,175	$	8,769

	December 31, 2023
(in thousands)	Real Estate			Other Collateral	Non-Accrual Loans with No Allowance
Commercial real estate	$	826	$	—	$	826
Residential mortgage		2,137		—		2,137
Total Loans	$	2,963	$	—	$	2,963

Allowance for Loan Losses Summarized by Loan Portfolio Segments

Six months ended (in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Unallocated		Total
Beginning balance at January 1, 2024	$	5,120	$	940	$	3,717	$	6,774	$	929	$	—	$	17,480
Loan charge-offs		—		—		(1,230)		(45)		(824)		—		(2,099)
Recoveries collected		37		6		34		26		227		—		330
Credit loss (credit)/expense		(305)		46		1,443		407		621		—		2,212
ACL balance at June 30, 2024	$	4,852	$	992	$	3,964	$	7,162	$	953	$	—	$	17,923
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 (credit)/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

Three months ended (in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Unallocated		Total
ACL balance at April 1, 2024	$	4,962	$	1,014	$	4,002	$	7,017	$	987	$	—	$	17,982
Loan charge-offs		—		—		(1,118)		(45)		(318)		—		(1,481)
Recoveries collected		—		3		3		9		157		—		172
Credit loss (credit)/expense		(110)		(25)		1,078		181		127		—		1,251
ACL balance at June 30, 2024	$	4,852	$	992	$	3,964	$	7,162	$	953	$	—	$	17,923
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/(credit)		171		29		(45)		93		186		—		434
ACL balance at June 30, 2023	$	4,946	$	1,134	$	3,549	$	6,417	$	859	$	—	$	16,905

Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating

(in thousands)	2024		2023		2022		2021		2020		2019 and Prior		Revolving		Total Portfolio Loans
June 30, 2024
Commercial real estate:
Non-owner-occupied
Pass	$	5,866	$	23,850	$	66,716	$	29,620	$	52,809	$	111,451	$	1,874	$	292,186
Special Mention		—		—		—		—		732		—		—		732
Substandard		—		—		—		—		—		2,729		—		2,729
Total non-owner occupied		5,866		23,850		66,716		29,620		53,541		114,180		1,874		295,647
Current period gross charge-offs		—		—		—		—		—		—		—		—
All other CRE
Pass		10,726		31,357		30,646		24,536		20,152		77,244		5,297		199,958
Special Mention		—		—		—		1,434		204		—		—		1,638
Substandard		—		—		—		—		—		3,491		282		3,773
Total all other CRE		10,726		31,357		30,646		25,970		20,356		80,735		5,579		205,369
Current period gross charge-offs		—		—		—		—		—		—		—		—
Acquisition and development:
1-4 family residential construction
Pass		1,325		13,866		—		—		—		—		2,298		17,489
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total acquisition and development		1,325		13,866		—		—		—		—		2,298		17,489
Current period gross charge-offs		—		—		—		—		—		—		—		—
All other A&D
Pass		7,622		24,112		19,888		1,917		2,281		10,557		4,251		70,628
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		97		—		97
Total all other A&D		7,622		24,112		19,888		1,917		2,281		10,654		4,251		70,725
Current period gross charge-offs		—		—		—		—		—		—		—		—
Commercial and industrial:
Pass		16,310		40,278		59,753		20,774		8,092		16,183		82,938		244,328
Special Mention		—		—		—		—		1,979		—		3,847		5,826
Substandard		—		—		4,079		1,142		6,584		765		2,947		15,517
Total commercial and industrial		16,310		40,278		63,832		21,916		16,655		16,948		89,732		265,671
Current period gross charge-offs		465		—		57		651		41		16		—		1,230
Residential mortgage:
Residential mortgage - term
Pass		16,831		57,219		97,006		84,619		37,150		146,885		2,186		441,896
Special Mention		—		—		—		40		—		—		—		40
Substandard		—		—		—		1,067		15		5,636		55		6,773
Total residential mortgage - term		16,831		57,219		97,006		85,726		37,165		152,521		2,241		448,709
Current period gross charge-offs		—		—		—		—		—		30		—		30
Residential mortgage - home equity
Pass		30		940		4,243		818		444		669		54,643		61,787
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		36		14		563		613
Total residential mortgage - home equity		30		940		4,243		818		480		683		55,206		62,400
Current period gross charge-offs		—		—		15		—		—		—		—		15
Consumer:
Pass		5,990		14,615		8,324		4,804		1,592		18,632		2,791		56,748
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		72		17		103		20		5		—		217
Total consumer		5,990		14,687		8,341		4,907		1,612		18,637		2,791		56,965
Current period gross charge-offs		96		174		60		15		11		468		—		824
Total Portfolio Loans
Pass		64,700		206,237		286,576		167,088		122,520		381,621		156,278		1,385,020
Special Mention		—		—		—		1,474		2,915		—		3,847		8,236
Substandard		—		72		4,096		2,312		6,655		12,737		3,847		29,719
Total Portfolio Loans	$	64,700	$	206,309	$	290,672	$	170,874	$	132,090	$	394,358	$	163,972	$	1,422,975
Current YTD Period:
Current period gross charge-offs	$	561	$	174	$	132	$	666	$	52	$	514	$	—	$	2,099

(in thousands)	2023		2022		2021		2020		2019		2018 and Prior		Revolving		Total Portfolio Loans
December 31, 2023
Commercial real estate:
Non-owner-occupied
Pass	$	23,511	$	65,878	$	30,332	$	54,270	$	40,575	$	65,134	$	1,138	$	280,838
Special Mention		—		—		—		—		—		4,331		—		4,331
Substandard		—		—		—		—		—		11,401		—		11,401
Total non-owner occupied		23,511		65,878		30,332		54,270		40,575		80,866		1,138		296,570
Current period gross charge-offs		—		—		—		—		—		87		—		87
All other CRE
Pass		30,130		27,379		27,042		20,691		22,879		60,054		4,495		192,670
Special Mention		—		—		—		644		—		—		—		644
Substandard		—		—		—		—		1,847		1,372		600		3,819
Total all other CRE		30,130		27,379		27,042		21,335		24,726		61,426		5,095		197,133
Current period gross charge-offs		—		—		—		—		—		—		—		—
Acquisition and development:
1-4 family residential construction
Pass		13,745		3,446		—		—		—		—		1,033		18,224
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total acquisition and development		13,745		3,446		—		—		—		—		1,033		18,224
Current period gross charge-offs		—		—		—		—		—		—		—		—
All other A&D
Pass		12,184		25,099		2,966		3,046		1,301		9,946		4,181		58,723
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		113		—		113
Total all other A&D		12,184		25,099		2,966		3,046		1,301		10,059		4,181		58,836
Current period gross charge-offs		—		—		—		—		—		—		—		—
Commercial and industrial:
Pass		52,004		66,559		24,387		11,753		8,872		10,052		78,992		252,619
Special Mention		558		—		—		—		—		—		—		558
Substandard		—		9,352		1,854		6,806		98		837		2,480		21,427
Total commercial and industrial		52,562		75,911		26,241		18,559		8,970		10,889		81,472		274,604
Current period gross charge-offs		100		103		35		166		—		19		—		423
Residential mortgage:
Residential mortgage - term
Pass		51,625		94,723		88,835		38,228		25,375		130,402		1,577		430,765
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		138		929		17		98		5,825		57		7,064
Total residential mortgage - term		51,625		94,861		89,764		38,245		25,473		136,227		1,634		437,829
Current period gross charge-offs		—		—		—		—		—		13		—		13
Residential mortgage - home equity
Pass		1,127		4,657		864		475		286		489		53,467		61,365
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		38		—		16		623		677
Total residential mortgage - home equity		1,127		4,657		864		513		286		505		54,090		62,042
Current period gross charge-offs		—		—		—		—		—		42		—		42
Consumer:
Pass		18,299		10,616		6,361		2,206		510		20,365		2,873		61,230
Special Mention		—		—		—		—		—		—		—		—
Substandard		14		35		113		23		6		2		6		199
Total consumer		18,313		10,651		6,474		2,229		516		20,367		2,879		61,429
Current period gross charge-offs		236		223		74		8		4		329		—		874
Total Portfolio Loans
Pass		202,625		298,357		180,787		130,669		99,798		296,442		147,756		1,356,434
Special Mention		558		—		—		644		—		4,331		—		5,533
Substandard		14		9,525		2,896		6,884		2,049		19,566		3,766		44,700
Total Portfolio Loans	$	203,197	$	307,882	$	183,683	$	138,197	$	101,847	$	320,339	$	151,522	$	1,406,667
Current YTD Period:
Current period gross charge-offs	$	336	$	326	$	109	$	174	$	4	$	490	$	—	$	1,439

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)	2024		2023		2022		2021		2020		2019 and Prior		Revolving		Total Portfolio Loans
June 30, 2024
Commercial real estate:
Non-owner-occupied
Performing	$	5,866	$	23,850	$	66,716	$	29,620	$	53,541	$	114,180	$	1,874	$	295,647
Nonperforming		—		—		—		—		—		—		—		—
Total non-owner occupied		5,866		23,850		66,716		29,620		53,541		114,180		1,874		295,647
All other CRE
Performing		10,726		31,357		30,646		25,970		20,356		80,136		5,579		204,770
Nonperforming		—		—		—		—		—		599		—		599
Total all other CRE		10,726		31,357		30,646		25,970		20,356		80,735		5,579		205,369
Acquisition and development:
1-4 family residential construction
Performing		1,325		13,866		—		—		—		—		2,298		17,489
Nonperforming		—		—		—		—		—		—		—		—
Total acquisition and development		1,325		13,866		—		—		—		—		2,298		17,489
All other A&D
Performing		7,622		24,112		19,888		1,917		2,281		10,557		4,251		70,628
Nonperforming		—		—		—		—		—		97		—		97
Total all other A&D		7,622		24,112		19,888		1,917		2,281		10,654		4,251		70,725
Commercial and industrial:
Performing		16,310		40,278		59,753		20,819		16,655		16,947		88,723		259,485
Nonperforming		—		—		4,079		1,097		—		1		1,009		6,186
Total commercial and industrial		16,310		40,278		63,832		21,916		16,655		16,948		89,732		265,671
Residential mortgage:
Residential mortgage - term
Performing		16,831		57,219		97,006		85,596		37,012		150,011		2,211		445,886
Nonperforming		—		—		—		130		153		2,510		30		2,823
Total residential mortgage - term		16,831		57,219		97,006		85,726		37,165		152,521		2,241		448,709
Residential mortgage - home equity
Performing		30		940		4,243		818		444		669		55,113		62,257
Nonperforming		—		—		—		—		36		14		93		143
Total residential mortgage - home equity		30		940		4,243		818		480		683		55,206		62,400
Consumer:
Performing		5,990		14,669		8,324		4,846		1,612		18,617		2,791		56,849
Nonperforming		—		18		17		61		—		20		—		116
Total consumer		5,990		14,687		8,341		4,907		1,612		18,637		2,791		56,965
Total Portfolio Loans
Performing		64,700		206,291		286,576		169,586		131,901		391,117		162,840		1,413,011
Nonperforming		—		18		4,096		1,288		189		3,241		1,132		9,964
Total Portfolio Loans	$	64,700	$	206,309	$	290,672	$	170,874	$	132,090	$	394,358	$	163,972	$	1,422,975

(in thousands)	2023		2022		2021		2020		2019		2018 and Prior		Revolving		Total Portfolio Loans
December 31, 2023
Commercial real estate:
Non-owner-occupied
Performing	$	23,511	$	65,878	$	30,332	$	54,270	$	40,575	$	80,639	$	1,138	$	296,343
Nonperforming		—		—		—		—		—		227		—		227
Total non-owner occupied		23,511		65,878		30,332		54,270		40,575		80,866		1,138		296,570
All other CRE
Performing		30,130		27,379		27,042		21,335		24,726		60,827		5,095		196,534
Nonperforming		—		—		—		—		—		599		—		599
Total all other CRE		30,130		27,379		27,042		21,335		24,726		61,426		5,095		197,133
Acquisition and development:
1-4 family residential construction
Performing		13,745		3,446		—		—		—		—		1,033		18,224
Nonperforming		—		—		—		—		—		—		—		—
Total acquisition and development		13,745		3,446		—		—		—		—		1,033		18,224
All other A&D
Performing		12,184		25,099		2,966		3,046		1,301		9,946		4,181		58,723
Nonperforming		—		—		—		—		—		113		—		113
Total all other A&D		12,184		25,099		2,966		3,046		1,301		10,059		4,181		58,836
Commercial and industrial:
Performing		52,562		75,911		26,241		18,559		8,970		10,889		81,472		274,604
Nonperforming		—		—		—		—		—		—		—		—
Total commercial and industrial		52,562		75,911		26,241		18,559		8,970		10,889		81,472		274,604
Residential mortgage:
Residential mortgage - term
Performing		51,625		94,722		89,629		38,245		25,375		133,526		1,603		434,725
Nonperforming		—		139		135		—		98		2,701		31		3,104
Total residential mortgage - term		51,625		94,861		89,764		38,245		25,473		136,227		1,634		437,829
Residential mortgage - home equity
Performing		1,127		4,657		864		475		286		488		53,802		61,699
Nonperforming		—		—		—		38		—		17		288		343
Total residential mortgage - home equity		1,127		4,657		864		513		286		505		54,090		62,042
Consumer:
Performing		18,304		10,616		6,405		2,229		516		20,367		2,879		61,316
Nonperforming		9		35		69		—		—		—		—		113
Total consumer		18,313		10,651		6,474		2,229		516		20,367		2,879		61,429
Total Portfolio Loans
Performing		203,188		307,708		183,479		138,159		101,749		316,682		151,203		1,402,168
Nonperforming		9		174		204		38		98		3,657		319		4,499
Total Portfolio Loans	$	203,197	$	307,882	$	183,683	$	138,197	$	101,847	$	320,339	$	151,522	$	1,406,667

Troubled Debt Restructuring

(in thousands)	Term Extension		Percentage of Total Loan Type	Weighted Average Term and Principal Payment Extension
Six months ended June 30, 2024
Owner-occupied commercial real estate	$	893	0.4%	12 months
Total	$	893

(in thousands)	Term Extension		Percentage of Total Loan Type	Weighted Average Term and Principal Payment Extension
Three months ended June 30, 2024
Owner-occupied commercial real estate	$	893	0.4%	12 months
Total	$	893