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

3 Months Ended

Mar. 31, 2020

Loans, Allowance for Credit Losses and Impaired Loans

Schedule of major categories of loans

(Dollars in thousands)	At March 31, 2020		At December 31, 2019
Originated Loans
Real Estate Mortgage
Construction and land development	$	69,455	$	59,236
Residential real estate		114,748		108,590
Nonresidential		347,059		325,916
Home equity loans		16,177		13,736
Commercial		61,952		52,838
Consumer and other loans		3,114		2,669
		612,505		562,985
Acquired Loans
Real Estate Mortgage
Construction and land development	$	21,417	$	26,034
Residential real estate		92,084		101,088
Nonresidential		211,435		222,075
Home equity loans		21,419		24,176
Commercial		58,964		60,675
Consumer and other loans		2,898		3,091
		408,217		437,139
Total Loans
Real Estate Mortgage
Construction and land development	$	90,872	$	85,270
Residential real estate		206,832		209,678
Nonresidential		558,494		547,991
Home equity loans		37,596		37,912
Commercial		120,916		113,513
Consumer and other loans		6,012		5,760
		1,020,722		1,000,124
Less: Unamortized discounts on acquired loans		(5,533)		(6,136)
Less: Allowance for credit losses		(7,819)		(7,304)
	$	1,007,370	$	986,684

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 March 31, 2020
Individually evaluated for impairment:
Balance in allowance	$	—	$	181	$	90	$	—	$	207	$	—	$	—	$	478
Related loan balance		388		4,417		14,287		56		2,086		17		—		21,251
Collectively evaluated for impairment:
Balance in allowance	$	718	$	1,238	$	4,253	$	169	$	678	$	19	$	266	$	7,341
Related loan balance		90,106		202,064		540,973		37,373		117,485		5,937		—		993,938

	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, 2019
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	$	3,991	$	142	$	552	$	14	$	267	$	6,732
Related loan balance		84,028		205,381		533,100		37,706		109,759		5,690		—		975,664

	March 31, 2020
	Real Estate Mortgage
	Construction
	and Land		Residential								Consumer
Dollars in Thousands	Development		Real Estate		Nonresidential		Home Equity		Commercial		and Other		Unallocated		Total
Quarter Ended
Beginning Balance	$	602	$	1,380	$	4,074	$	142	$	826	$	14	$	266	$	7,304
Charge-offs		—		(25)		(38)		—		(66)		(41)		—		(170)
Recoveries		—		4		3		10		7		13		—		37
Provision		116		60		304		17		118		33		—		648
Ending Balance	$	718	$	1,419	$	4,343	$	169	$	885	$	19	$	266	$	7,819

	March 31, 2019
	Real Estate Mortgage
	Construction
	and Land		Residential								Consumer
Dollars in Thousands	Development		Real Estate		Nonresidential		Home Equity		Commercial		and Other		Unallocated		Total
Quarter Ended
Beginning Balance	$	647	$	1,521	$	3,629	$	122	$	641	$	13	$	490	$	7,063
Charge-offs		(11)		—		(191)		(4)		(98)		(37)		—		(341)
Recoveries		1		2		4		—		18		16		—		41
Provision		(39)		(14)		254		29		94		19		(43)		300
Ending Balance	$	598	$	1,509	S	3,696	$	147	$	655	$	11	$	447	$	7,063

Schedule of loans by risk rating

	Real Estate Secured
	Construction &
	Land		Residential								Consumer &
March 31, 2020	Development		Real Estate		Nonresidential		Home Equity		Commercial		Other		Total
	Dollars in Thousands
Excellent	$	—	$	—	$	397	$	—	$	6,044	$	107	$	6,548
Superior		—		134		3,580		122		2,071		—		5,907
Good		89,498		199,142		534,658		37,243		107,471		5,831		973,843
Fair		819		4,207		12,003		64		2,429		16		19,538
Marginal		—		—		—		—		—		—		—
Substandard		177		2,998		4,622		—		1,556		—		9,353
TOTAL	$	90,494	$	206,481	$	555,260	$	37,429	$	119,571	$	5,954	$	1,015,189
Non-Accrual	$	177	$	1,508	$	2,346	$	—	$	1,280	$	—	$	5,311
TDRs	$	—	$	2,269	$	7,437	$	—	$	1,207	$	—	$	10,913
Number of TDR accounts		—		11		18		—		1		—		30
Breakdown of TDRs
TDRs on Non-accrual	$	—	$	866	$	575	$	—	$	1,207	$	—	$	2,648
TDRs Past Due 30-89 days		—		15		—		—		—		—		15
Performing TDRs		—		1,388		6,862		—		—		—		8,250
TOTAL	$	—	$	2,269	$	7,437	$	—	$	1,207	$	—	$	10,913
Total Non-performing TDR accounts	$	—	$	881	$	575	$	—	$	1,207	$	—	$	2,663
Number of non‑performing TDRs		—		3		2		—		1		—		6

	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		202,690		525,465		37,528		99,973		5,557		954,986
Fair		801		3,321		9,739		64		2,469		20		16,414
Marginal		—		—		—		—		—		—		—
Substandard		177		3,136		5,290		—		1,648		—		10,251
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

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 March 31, 2020	Past Due*		Past Due**		Past Due***		Past Due		Balance		Receivables***		and Accruing
	Dollars in Thousands
Real Estate
Construction and land development	$	—	$	40	$	177	$	217	$	90,655	$	90,872	$	—
Residential real estate		2,008		155		915		3,078		203,754		206,832		293
Nonresidential		1,631		42		1,570		3,243		555,251		558,494		—
Home equity loans		19		—		—		19		37,577		37,596		—
Commercial		247		—		1,280		1,527		119,389		120,916		—
Consumer and other loans		6		—		—		6		6,006		6,012		—
TOTAL	$	3,911	$	237	$	3,942	$	8,090	$	1,012,632	$	1,020,722	$	293

*      Includes $1.5 million of non‑accrual loans.

**    Includes $155 thousand of non-accrual loans.

***  Includes $3.6 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, 2019	Past Due*		Past Due**		Past Due***		Past Due		Balance		Receivables***		and Accruing
	Dollars in Thousands
Real Estate
Construction and land development	$	424	$	—	$	177	$	601	$	84,669	$	85,270	$	—
Residential real estate		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.

Schedule of impaired loans

			Unpaid		Interest				Average
	Recorded		Principal		Income		Specific		Recorded
March 31, 2020	Investment		Balance		Recognized		Reserve		Investment
	Dollars in Thousands
Impaired loans with specific reserves:
Real Estate Mortgage
Construction and land development	$	—	$	—	$	—	$	—	$	—
Residential real estate		691		691		—		181		709
Nonresidential		2,411		2,449		69		90		2,433
Home equity loans		—		—		—		—		—
Commercial		1,207		1,207		11		207		1,240
Consumer and other loans		—		—		—		—		—
Total impaired loans with specific reserves	$	4,309	$	4,347	$	80	$	478	$	4,382
Impaired loans with no specific reserve:
Real Estate Mortgage
Construction and land development	$	388	$	388	$	3	$	—	$	556
Residential real estate		4,528		5,299		57		—		4,296
Nonresidential real estate		12,365		12,697		182		—		11,050
Home equity loans		56		56		1		—		32
Commercial		991		991		17		—		1,034
Consumer and other loans		17		17		—		—		8
Total impaired loans with no specific reserve	$	18,345	$	19,448	$	260	$	—	$	16,976
TOTAL	$	22,654	$	23,795	$	340	$	478	$	21,358

			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		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		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

Schedule of outstanding balance and carrying amount of acquired loans

Dollars in Thousands	March 31, 2020		December 31, 2019
Accountable for under ASC 310-30 (PCI loans)
Outstanding balance	$	6,123	$	6,428
Carrying amount		5,134		5,373
Accountable for under ASC 310-20 (non-PCI loans)
Outstanding balance	$	402,094	$	430,711
Carrying amount		397,550		425,630
Total acquired loans
Outstanding balance	$	408,217	$	437,139
Carrying amount		402,684		431,003

Schedule of changes in accretable yield of acquired loans

Dollars in Thousands	March 31, 2020		December 31, 2019
Balance at beginning of period	$	5,081	$	745
Acquisitions		—		4,990
Accretion		(537)		(654)
Balance at end of period	$	4,544	$	5,081