Loans, Allowance for Credit Losses and Impaired Loans (Tables)

12 Months Ended

Dec. 31, 2019

Loans, Allowance for Credit Losses and Impaired Loans

Schedule of major categories of loans

(Dollars in thousands)	At December 31, 2019		At December 31, 2018
Originated Loans
Real Estate Mortgage
Construction and land development	$	59,236	$	63,376
Residential real estate		108,590		102,970
Nonresidential		325,916		292,766
Home equity loans		13,736		13,801
Commercial		52,838		46,059
Consumer and other loans		2,669		2,900
		562,985		521,872
Acquired Loans
Real Estate Mortgage
Construction and land development	$	26,034	$	10,276
Residential real estate		101,088		22,431
Nonresidential		222,075		59,804
Home equity loans		24,176		7,101
Commercial		60,675		12,406
Consumer and other loans		3,091		13
		437,139		112,031
Total Loans
Real Estate Mortgage
Construction and land development	$	85,270	$	73,652
Residential real estate		209,678		125,401
Nonresidential		547,991		352,570
Home equity loans		37,912		20,902
Commercial		113,513		58,465
Consumer and other loans		5,760		2,913
		1,000,124		633,903
Less: Unamortized discounts on acquired loans		(6,136)		(1,327)
Less: Allowance for loan losses		(7,304)		(7,063)
	$	986,684	$	625,513

Schedule of allowance for credit losses by loan category

	Real Estate Mortgage
	Construction
	and Land		Residential								Consumer
Dollars in Thousands	Development		Real Estate		Nonresidential		Home Equity		Commercial		and Other		Unallocated		Total
Balance at  December 31, 2018
Beginning Balance - originated loans	$	647	$	1,521	$	3,620	$	115	$	625	$	13	$	490	$	7,031
Charge‑offs—originated loans		(11)		(193)		(460)		(105)		(689)		(126)		—		(1,584)
Recoveries—originated loans		11		182		92		—		51		48		—		384
Provision—originated loans		(45)		(130)		813		125		823		79		(224)		1,441
Allowance allocation adjustment		(5)		(17)		(6)		7		(26)		—		—		(47)
Total Allowance on originated loans		597		1,363		4,059		142		784		14		266		7,225
Beginning Balance - acquired loans		—		—		9		7		16		—		—		32
Charge‑offs—acquired loans		—		—		—		—		—		—		—		—
Recoveries—acquired loans		—		—		—		—		—		—		—		—
Provision—acquired loans		—		—		—		—		—		—		—		—
Allowance allocation adjustment		5		17		6		(7)		26		—		—		47
Total Allowance on acquired loans		5		17		15		—		42		—		—		79
Balance at December 31, 2019		602		1,380		4,074		142		826		14		266		7,304
Individually evaluated for impairment:
Balance in allowance	$	—	$	216	$	82	$	—	$	274	$	—	$	—	$	572
Related loan balance		723		3,905		11,449		9		2,238		—		—		18,324
Collectively evaluated for impairment:
Balance in allowance	$	602	$	1,164	$	3,992	$	142	$	552	$	14	$	266	$	6,732
Related loan balance		84,027		205,381		533,101		37,706		109,759		5,690		—		975,664

	Real Estate Mortgage
	Construction
	and Land		Residential								Consumer
Dollars in Thousands	Development		Real Estate		Nonresidential		Home Equity		Commercial		and Other		Unallocated		Total
Balance at December 31, 2017	$	589	$	1,583	$	3,269	$	161	$	520	$	16	$	565	$	6,703
Charge‑offs—originated loans		(58)		(332)		(453)		(20)		(129)		(161)		—		(1,153)
Recoveries—originated loans		9		109		80		41		48		51		—		338
Provision—originated loans		107		161		733		(60)		202		107		(75)		1,175
Allowance allocation adjustment		—		—		(9)		(7)		(16)		—		—		(32)
Total Allowance on originated loans		647		1,521		3,620		115		625		13		490		7,031
Charge‑offs—acquired loans		—		—		—		—		—		—		—		—
Recoveries—acquired loans		—		—		—		—		—		—		—		—
Provision—acquired loans		—		—		—		—		—		—		—		—
Allowance allocation adjustment		—		—		9		7		16		—		—		32
Total Allowance on acquired loans		—		—		9		7		16		—		—		32
Balance at December 31, 2018		647		1,521		3,629		122		641		13		490		7,063
Individually evaluated for impairment:
Balance in allowance	$	—	$	580	$	278	$	6	$	178	$	—	$	—	$	1,042
Related loan balance		8,708		8,082		6,239		693		1,732		—		—		25,454
Collectively evaluated for impairment:
Balance in allowance	$	647	$	941	$	3,351	$	116	$	463	$	13	$	490	$	6,021
Related loan balance		64,943		117,104		345,583		20,088		56,490		2,914		—		607,122

Schedule of loans by risk rating

	Real Estate Secured
	Construction &
	Land		Residential								Consumer &
December 31, 2019	Development		Real Estate		Nonresidential		Home Equity		Commercial		Other		Total
	Dollars in Thousands
Excellent	$	—	$	—	$	405	$	—	$	6,089	$	111	$	6,605
Superior		—		139		3,652		122		1,818		1		5,732
Good		83,773		200,999		525,465		37,528		99,973		5,557		953,295
Fair		757		3,373		7,710		64		1,710		20		13,634
Marginal		—		511		—		—		—		—		511
Substandard		221		4,264		7,319		—		2,407		—		14,211
TOTAL	$	84,751	$	209,286	$	544,551	$	37,714	$	111,997	$	5,689	$	993,988
Non-Accrual	$	177	$	1,620	$	2,608	$	5	$	131	$	—	$	4,541
Troubled debt restructures	$	—	$	2,323	$	7,934	$	—	$	38	$	—	$	10,295
Number of TDR accounts		—		12		20		—		1		—		33
Breakdown of TDRs
TDRs on Non-accrual	$	—	$	904	$	926	$	—	$	38	$	—	$	1,868
TDRs Past Due 30-89		—		—		—		—		—		—		—
Performing TDRs		—		1,419		7,008		—		—		—		8,427
TOTAL	$	—	$	2,323	$	7,934	$	—	$	38	$	—	$	10,295
Total Non-performing TDR accounts	$	—	$	904	$	926	$	—	$	38	$	—	$	1,868
Number of non‑performing TDRs		—		3		3		—		1		—		7

	Real Estate Secured
	Construction &
	Land		Residential								Consumer &
December 31, 2018	Development		Real Estate		Nonresidential		Home Equity		Commercial		Other		Total
	Dollars in Thousands
Excellent	$	—	$	—	$	1,143	$	—	$	9,631	$	125	$	10,899
Superior		—		156		7,523		110		2,011		4		9,805
Good		73,069		113,777		328,178		19,624		43,863		2,785		581,295
Fair		25		3,658		8,059		941		2,106		—		14,788
Marginal		338		112		69		—		268		—		787
Substandard		220		7,482		6,851		107		343		—		15,003
TOTAL	$	73,652	$	125,185	$	351,823	$	20,782	$	58,222	$	2,914	$	632,576
Non-Accrual	$	220	$	4,440	$	4,203	$	107	$	178	$	—	$	9,148
Troubled debt restructures	$	40	$	7,162	$	10,301	$	107	$	—	$	206	$	17,816
Number of TDR accounts		1		20		27		1		—		3		52
Breakdown of TDRs
TDRs on Non-accrual	$	40	$	3,183	$	2,506	$	107	$	—	$	175	$	6,012
TDRs Past Due 30-89		—		—		640		—		—		31		671
Performing TDRs		—		3,979		7,155		—		—		—		11,134
TOTAL	$	40	$	7,162	$	10,301	$	107	$	—	$	206	$	17,816
Total Non-performing TDR accounts	$	40	$	3,183	$	3,146	$	107	$	—	$	206	$	6,682
Number of non‑performing TDRs		1		9		9		1		—		3		23

Schedule of aging analysis of the recorded investment of past due financing receivables

													Recorded
													Investment
					Greater than						Total		>90 Days
	30 - 59 Days		60 - 89 Days		90 Days		Total		Current		Financing		Past Due
At December 31, 2019	Past Due*		Past Due**		Past Due***		Past Due		Balance		Receivables**		and Accruing
	Dollars in Thousands
Real Estate
Constructions and land development	$	424	$	—	$	177	$	601	$	84,669	$	85,270	$	—
Residential		1,296		677		702		2,675		207,003		209,678		—
Nonresidential		635		144		1,823		2,602		545,389		547,991		—
Home equity loans		—		—		—		—		37,912		37,912		—
Commercial		231		1,207		94		1,532		111,981		113,513		—
Consumer and other loans		1		19		—		20		5,740		5,760		5
TOTAL	$	2,587	$	2,047	$	2,796	$	7,430	$	992,694	$	1,000,124	$	5

*      Includes $956 thousand of non‑accrual loans.

**   Includes $81 thousand of non-accrual loans.

*** Includes $2.6 million of non-accrual loans.

													Recorded
													Investment
					Greater than						Total		>90 Days
	30 - 59 Days		60 - 89 Days		90 Days		Total		Current		Financing		Past Due
At December 31, 2018	Past Due		Past Due		Past Due*		Past Due		Balance		Receivables**		and Accruing
	Dollars in Thousands
Real Estate
Constructions and land development	$	9	$	200	$	378	$	587	$	73,065	$	73,652	$	338
Residential		1,277		383		1,615		3,275		122,126		125,401		—
Nonresidential		867		1,542		2,751		5,160		347,410		352,570		—
Home equity loans		15		—		107		122		20,780		20,902		—
Commercial		1,028		33		268		1,329		57,136		58,465		268
Consumer and other loans		7		—		—		7		2,906		2,913		—
TOTAL	$	3,203	$	2,158	$	5,119	$	10,480	$	623,423	$	633,903	$	606

*      Includes $4.5 million of non‑accrual loans.

Schedule of impaired loans

			Unpaid		Interest				Average
	Recorded		Principal		Income		Specific		Recorded
December 31, 2019	Investment		Balance		Recognized		Reserve		Investment
	Dollars in Thousands
Impaired loans with specific reserves:
Real Estate Mortgage
Construction and land development	$	—	$	—	$	—	$	—	$	—
Residential real estate		727		727		—		216		2,337
Nonresidential real estate		2,456		2,456		260		82		2,866
Home equity loans		—		—		—		—		—
Commercial		1,274		1,274		53		274		659
Consumer and other loans		—		—		—		—		—
Total impaired loans with specific reserves	$	4,457	$	4,457	$	313	$	572	$	5,862
Impaired loans with no specific reserve:
Real Estate Mortgage
Construction and land development	$	723	$	545	$	34	$	—	$	471
Residential real estate		4,064		4,717		243		—		4,566
Nonresidential real estate		9,734		9,266		909		—		11,181
Home equity loans		9		9		17		—		351
Commercial		1,078		1,078		87		—		1,441
Consumer and other loans		—		—		—		—		—
Total impaired loans with no specific reserve	$	15,608	$	15,615	$	1,290	—	—	$	18,010
TOTAL	$	20,065	$	20,072	$	1,603	$	572	$	23,872

			Unpaid		Interest				Average
	Recorded		Principal		Income		Specific		Recorded
December 31, 2018	Investment		Balance		Recognized		Reserve		Investment
	Dollars in Thousands
Impaired loans with specific reserves:
Real Estate Mortgage
Construction and land development	$	—	$	—	$	—	$	—	$	16
Residential real estate		3,947		4,075		174		586		4,934
Nonresidential real estate		3,276		3,276		246		412		3,674
Home equity loans		—		—		—		—		55
Commercial		44		44		2		44		22
Consumer and other loans		—		—		—		—		—
Total impaired loans with specific reserves	$	7,267	$	7,395	$	422	$	1,042	$	8,701
Impaired loans with no specific reserve:
Real Estate Mortgage
Construction and land development	$	220	$	360	$	1	$	—	$	264
Residential real estate		5,068		6,318		228		—		3,555
Nonresidential real estate		12,629		13,545		1,015		—		10,427
Home equity loans		693		693		28		—		347
Commercial		1,805		1,805		112		—		1,080
Consumer and other loans		—		—		—		—		—
Total impaired loans with no specific reserve	$	20,415	$	22,721	$	1,384	$	—	$	15,673
TOTAL	$	27,682	$	30,116	$	1,806	$	1,042	$	24,374

Schedule of outstanding balance and carrying amount of acquired loans

Dollars in Thousands	December 31, 2019		December 31, 2018
Accountable for under ASC 310-30 (PCI loans)
Outstanding balance	$	6,428	$	1,692
Carrying amount		5,373		1,110
Accountable for under ASC 310-20 (non-PCI loans)
Outstanding balance	$	430,711	$	110,339
Carrying amount		425,630		109,594
Total acquired loans
Outstanding balance	$	437,139	$	112,031
Carrying amount		431,003		110,704

Schedule of changes in accretable yield of acquired loans

Dollars in Thousands	December 31, 2019		December 31, 2018
Balance at beginning of period	$	745	$	—
Acquisitions		673		1,703
Accretion		(415)		(958)
Balance at end of period	$	1,003	$	745