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

3 Months Ended

Mar. 31, 2022

Loans, Allowance for Credit Losses and Impaired Loans

Schedule of major categories of loans

(Dollars in thousands)	March 31, 2022		December 31, 2021
Originated Loans
Real Estate Mortgage
Construction and land development	$	105,618	$	107,478
Residential real estate		177,726		159,701
Nonresidential		558,960		513,873
Home equity loans		21,905		19,246
Commercial		107,422		109,470
Consumer and other loans		3,269		3,546
		974,900		913,314
Acquired Loans
Real Estate Mortgage
Construction and land development	$	460	$	505
Residential real estate		34,037		41,529
Nonresidential		113,738		128,344
Home equity loans		9,958		11,149
Commercial		19,426		21,438
Consumer and other loans		845		916
		178,464		203,881
Total Loans
Real Estate Mortgage
Construction and land development	$	106,078	$	107,983
Residential real estate		211,763		201,230
Nonresidential		672,698		642,217
Home equity loans		31,863		30,395
Commercial		126,848		130,908
Consumer and other loans		4,114		4,462
		1,153,364		1,117,195
Less: Allowance for credit losses		(14,565)		(14,656)
	$	1,138,799	$	1,102,539

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, 2022
Purchased credit impaired loans
Balance in allowance	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Related loan balance		—		1,621		369		—		128		—		—		2,118
Individually evaluated for impairment:
Balance in allowance	$	—	$	2	$	939	$	—	$	365	$	—	$	—	$	1,306
Related loan balance		598		1,718		6,338		53		492		—		—		9,199
Collectively evaluated for impairment:
Balance in allowance	$	1,002	$	1,905	$	8,360	$	231	$	1,321	$	32	$	408	$	13,259
Related loan balance		105,480		208,424		665,991		31,810		126,228		4,114		—		1,142,047

	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, 2021
Purchased credit impaired loans
Balance in allowance	$	—	$	9	$	—	$	—	$	—	$	—	$	—	$	9
Related loan balance		46		1,633		376		—		126		—		—		2,181
Individually evaluated for impairment:
Balance in allowance	$	—	$	3	$	1,000	$	—	$	452	$	—	$	—	$	1,455
Related loan balance		598		2,082		9,901		53		584		—		—		13,218
Collectively evaluated for impairment:
Balance in allowance	$	1,143	$	1,881	$	8,239	$	212	$	1,433	$	36	$	248	$	13,192
Related loan balance		107,339		197,515		631,940		30,342		130,198		4,462		—		1,101,796

	March 31, 2022
	Real Estate Mortgage
	Construction
	and Land		Residential								Consumer
Dollars in Thousands	Development		Real Estate		Nonresidential		Home Equity		Commercial		and Other		Unallocated		Total
Three Months Ended
Beginning Balance	$	1,143	$	1,893	$	9,239	$	212	$	1,885	$	36	$	248	$	14,656
Charge-offs		—		—		(132)		(25)		(22)		(11)		—		(190)
Recoveries		—		21		5		2		4		2		—		34
Provision/(recovery)		(141)		(7)		187		42		(181)		5		160		65
Ending Balance	$	1,002	$	1,907	$	9,299	$	231	$	1,686	$	32	$	408	$	14,565

	December 31, 2021
	Real Estate Mortgage
	Construction
	and Land		Residential								Consumer
Dollars in Thousands	Development		Real Estate		Nonresidential		Home Equity		Commercial		and Other		Unallocated		Total
Year Ended
Beginning Balance	$	903	$	2,351	$	7,584	$	271	$	1,943	$	37	$	114	$	13,203
Charge-offs		—		(39)		(692)		(7)		(184)		(66)		—		(988)
Recoveries		1		23		53		3		16		22		—		118
Provision/(recovery)		239		(442)		2,294		(55)		110		43		134		2,323
Ending Balance	$	1,143	$	1,893	$	9,239	$	212	$	1,885	$	36	$	248	$	14,656

Schedule of loans by risk rating

	Real Estate Secured
	Construction &
	Land		Residential								Consumer &
March 31, 2022	Development		Real Estate		Nonresidential		Home Equity		Commercial		Other		Total
	Dollars in Thousands
Pass	$	105,480	$	209,318	$	655,751	$	31,722	$	125,086	$	3,637	$	1,130,994
Marginal		—		953		12,734		44		1,270		477		15,478
Substandard		598		1,492		4,213		97		492		—		6,892
TOTAL	$	106,078	$	211,763	$	672,698	$	31,863	$	126,848	$	4,114	$	1,153,364
Non-Accrual	$	598	$	1,107	$	3,947	$	—	$	492	$	—	$	6,144

	Real Estate Secured
	Construction &
	Land		Residential								Consumer &
December 31, 2021	Development		Real Estate		Nonresidential		Home Equity		Commercial		Other		Total
	Dollars in Thousands
Pass	$	107,339	$	199,037	$	622,648	$	30,159	$	128,949	$	3,960	$	1,092,092
Marginal		46		507		12,819		183		1,364		502		15,421
Substandard		598		1,686		6,750		53		595		—		9,682
TOTAL	$	107,983	$	201,230	$	642,217	$	30,395	$	130,908	$	4,462	$	1,117,195
Non-Accrual	$	598	$	1,293	$	6,486	$	—	$	584	$	—	$	8,961

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, 2022	Past Due*		Past Due		Past Due**		Past Due		Balance***		Receivables		and Accruing
	Dollars in Thousands
Real Estate Mortgage
Construction and land development	$	—	$	—	$	598	$	598	$	105,480	$	106,078	$	—
Residential real estate		716		—		192		908		210,855		211,763		—
Nonresidential		115		666		385		1,166		671,532		672,698		—
Home equity loans		—		45		—		45		31,818		31,863		—
Commercial		18		—		77		95		126,753		126,848		—
Consumer and other loans		3		3		—		6		4,108		4,114		—
TOTAL	$	852	$	714	$	1,252	$	2,818	$	1,150,546	$	1,153,364	$	—

* Includes $669 thousand of non-accrual loans.

** Includes $1.3 million of non-accrual loans.

*** Includes $4.2 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, 2021	Past Due*		Past Due		Past Due**		Past Due		Balance***		Receivables		and Accruing
	Dollars in Thousands
Real Estate Mortgage
Construction and land development	$	—	$	—	$	598	$	598	$	107,385	$	107,983	$	—
Residential real estate		658		245		361		1,264		199,966		201,230		—
Nonresidential		—		—		2,915		2,915		639,302		642,217		—
Home equity loans		160		—		—		160		30,235		30,395		—
Commercial		46		—		77		123		130,785		130,908		—
Consumer and other loans		15		—		—		15		4,447		4,462		—
TOTAL	$	879	$	245	$	3,951	$	5,075	$	1,112,120	$	1,117,195	$	—

*      Includes $55 thousand of non-accrual loans.

**    Includes $4.0 million of non-accrual loans.

***  Includes $5.0 million of non-accrual loans.

Schedule of impaired loans

			Unpaid		Interest				Average
	Recorded		Principal		Income		Specific		Recorded
March 31, 2022	Investment		Balance		Recognized		Reserve		Investment
	Dollars in Thousands
Impaired loans with specific reserves:
Real Estate Mortgage
Construction and land development	$	—	$	—	$	—	$	—	$	—
Residential real estate		422		422		5		2		424
Nonresidential		3,562		3,559		12		939		3,564
Home equity loans		—		—		—		—		—
Commercial		365		376		10		365		382
Consumer and other loans		—		—		—		—		—
Total impaired loans with specific reserves	$	4,349	$	4,357	$	27	$	1,306	$	4,370
Impaired loans with no specific reserve:
Real Estate Mortgage
Construction and land development	$	598	$	598	$	—	$	—	$	598
Residential real estate		1,296		1,296		4		—		1,304
Nonresidential		2,776		2,776		69		—		2,783
Home equity loans		53		53		1		—		53
Commercial		127		204		—		—		154
Consumer and other loans		—		—		—		—		—
Total impaired loans with no specific reserve	$	4,850	$	4,927	$	74	$	—	$	4,892
TOTAL	$	9,199	$	9,284	$	101	$	1,306	$	9,262

			Unpaid		Interest				Average
	Recorded		Principal		Income		Specific		Recorded
December 31, 2021	Investment		Balance		Recognized		Reserve		Investment
	Dollars in Thousands
Impaired loans with specific reserves:
Real Estate Mortgage
Construction and land development	$	—	$	—	$	—	$	—	$	—
Residential real estate		426		426		22		3		433
Nonresidential		6,437		6,559		369		1,000		6,528
Home equity loans		—		—		—		—		—
Commercial		507		517		119		452		583
Consumer and other loans		—		—		—		—		—
Total impaired loans with specific reserves	$	7,370	$	7,502	$	510	$	1,455	$	7,544
Impaired loans with no specific reserve:
Real Estate Mortgage
Construction and land development	$	598	$	598	$	13	$	—	$	599
Residential real estate		1,656		1,687		26		—		1,698
Nonresidential		3,464		3,462		344		—		3,510
Home equity loans		53		53		1		—		53
Commercial		77		154		2		—		109
Consumer and other loans		—		—		—		—		—
Total impaired loans with no specific reserve	$	5,848	$	5,954	$	386	$	—	$	5,969
TOTAL	$	13,218	$	13,456	$	896	$	1,455	$	13,513

Schedule of outstanding balance and carrying amount of acquired loans

Dollars in Thousands	March 31, 2022		December 31, 2021
Accountable for under ASC 310-30 (PCI loans)
Outstanding balance	$	2,523	$	2,613
Carrying amount		2,118		2,181
Accountable for under ASC 310-20 (non-PCI loans)
Outstanding balance	$	177,948	$	203,596
Carrying amount		176,346		201,700
Total acquired loans
Outstanding balance	$	180,471	$	206,209
Carrying amount		178,464		203,881

Schedule of changes in accretable yield of acquired loans

Dollars in Thousands	March 31, 2022		December 31, 2021
Balance at beginning of period	$	1,896	$	3,361
Acquisitions		—		—
Accretion		(295)		(1,464)
Other changes, net		1		(1)
Balance at end of period	$	1,602	$	1,896