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

6 Months Ended

18 Months Ended

Jun. 30, 2022

Jun. 30, 2022

Loans, Allowance for Credit Losses and Impaired Loans

Schedule of major categories of loans

(Dollars in thousands)	June 30, 2022		December 31, 2021
Originated Loans
Real Estate Mortgage
Construction and land development	$	101,424	$	107,478
Residential real estate		186,595		159,701
Nonresidential		587,798		513,873
Home equity loans		22,184		19,246
Commercial		107,576		109,470
Consumer and other loans		3,318		3,546
		1,008,895		913,314
Acquired Loans
Real Estate Mortgage
Construction and land development	$	462	$	505
Residential real estate		30,419		41,529
Nonresidential		102,990		128,344
Home equity loans		9,466		11,149
Commercial		16,459		21,438
Consumer and other loans		775		916
		160,571		203,881
Total Loans
Real Estate Mortgage
Construction and land development	$	101,886	$	107,983
Residential real estate		217,014		201,230
Nonresidential		690,788		642,217
Home equity loans		31,650		30,395
Commercial		124,035		130,908
Consumer and other loans		4,093		4,462
		1,169,466		1,117,195
Less: Allowance for credit losses		(14,059)		(14,656)
	$	1,155,407	$	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 June 30, 2022
Purchased credit impaired loans
Balance in allowance	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Related loan balance		—		731		361		—		45		—		—		1,137
Individually evaluated for impairment:
Balance in allowance	$	—	$	2	$	659	$	—	$	280	$	—	$	—	$	941
Related loan balance		598		1,656		4,775		53		397		—		—		7,479
Collectively evaluated for impairment:
Balance in allowance	$	935	$	1,867	$	8,544	$	234	$	1,383	$	31	$	124	$	13,118
Related loan balance		101,288		214,627		685,652		31,597		123,593		4,093		—		1,160,850

	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

	June 30, 2022
	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	$	1,002	$	1,907	$	9,299	$	231	$	1,686	$	32	$	408	$	14,565
Charge-offs		—		—		(756)		—		(97)		(14)		—		(867)
Recoveries		—		18		11		4		6		3		—		42
Provision/(recovery)		(67)		(56)		649		(1)		68		10		(284)		319
Ending Balance	$	935	$	1,869	$	9,203	$	234	$	1,663	$	31	$	124	$	14,059
Six Months Ended
Beginning Balance	$	1,143	$	1,893	$	9,239	$	212	$	1,885	$	36	$	248	$	14,656
Charge-offs		—		—		(886)		(27)		(120)		(25)		—		(1,058)
Recoveries		—		39		16		6		11		5		—		77
Provision/(recovery)		(208)		(63)		834		43		(113)		15		(124)		384
Ending Balance	$	935	$	1,869	$	9,203	$	234	$	1,663	$	31	$	124	$	14,059

	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 Mortgage
	Construction &
	Land		Residential								Consumer &
June 30, 2022	Development		Real Estate		Nonresidential		Home Equity		Commercial		Other		Total
	Dollars in Thousands
Pass	$	101,288	$	215,232	$	675,326	$	31,553	$	122,433	$	3,640	$	1,149,472
Marginal		—		413		12,637		—		1,175		453		14,678
Substandard		598		1,369		2,825		97		427		—		5,316
TOTAL	$	101,886	$	217,014	$	690,788	$	31,650	$	124,035	$	4,093	$	1,169,466
Nonaccrual	$	598	$	987	$	2,562	$	—	$	427	$	—	$	4,574

	Real Estate Mortgage
	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
Nonaccrual	$	598	$	1,293	$	6,486	$	—	$	584	$	—	$	8,961

Schedule of loans modified under the terms of a TDR by class

	Real Estate Mortgage
	Construction &
	Land		Residential								Consumer &
	Development		Real Estate		Nonresidential		Home Equity		Commercial		Other		Total
	Dollars in Thousands
Three months ended June 30, 2022
Number of loans modified during the period		—		1		—		—		—		—		1
Pre-modification recorded balance	$	—	$	48,303	$	—	$	—	$	—	$	—	$	48,303
Post- modification recorded balance		—		48,263		—		—		—		—		48,263
Six months ended June 30, 2022
Number of loans modified during the period		—		1		—		—		—		—		1
Pre-modification recorded balance	$	—	$	48,303	$	—	$	—	$	—	$	—	$	48,303
Post- modification recorded balance		—		48,263		—		—		—		—		48,263
Three months ended June 30, 2021
Number of loans modified during the period		—		—		1		—		—		—		1
Pre-modification recorded balance	$	—	$	—	$	278	$	—	$	—	$	—	$	278
Post- modification recorded balance		—		—		272		—		—		—		272
Six months ended June 30, 2021
Number of loans modified during the period		—		—		1		—		—		—		1
Pre-modification recorded balance	$	—	$	—	$	278	$	—	$	—	$	—	$	278
Post- modification recorded balance		—		—		272		—		—		—		272

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 June 30, 2022	Past Due*		Past Due **		Past Due***		Past Due		Balance****		Receivables		and Accruing
	Dollars in Thousands
Real Estate Mortgage
Construction and land development	$	—	$	343	$	598	$	941	$	100,945	$	101,886	$	—
Residential real estate		1,359		408		50		1,817		215,197		217,014		—
Nonresidential		2,962		—		316		3,278		687,510		690,788		—
Home equity loans		45		—		—		45		31,605		31,650		—
Commercial		27		31		—		58		123,977		124,035		—
Consumer and other loans		2		—		—		2		4,091		4,093		—
TOTAL	$	4,395	$	782	$	964	$	6,141	$	1,163,325	$	1,169,466	$	—

* Includes $2.9 million of nonaccrual loans.

** Includes $31 thousand of nonaccrual loans.

*** Includes $964 thousand of nonaccrual loans.

**** Includes $710 thousand of nonaccrual 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 nonaccrual loans.

**    Includes $4.0 million of nonaccrual loans.

***  Includes $5.0 million of nonaccrual loans.

Schedule of impaired loans

			Unpaid		Interest				Average
	Recorded		Principal		Income		Specific		Recorded
June 30, 2022	Investment		Balance		Recognized		Reserve		Investment
	Dollars in Thousands
Impaired loans with specific reserves:
Real Estate Mortgage
Construction and land development	$	—	$	—	$	—	$	—	$	—
Residential real estate		144		144		4		2		145
Nonresidential		2,246		2,246		22		659		2,572
Home equity loans		—		—		—		—		—
Commercial		351		362		20		280		374
Consumer and other loans		—		—		—		—		—
Total impaired loans with specific reserves	$	2,741	$	2,752	$	46	$	941	$	3,091
Impaired loans with no specific reserve:
Real Estate Mortgage
Construction and land development	$	598	$	598	$	—	$	—	$	598
Residential real estate		1,512		1,512		15		—		1,533
Nonresidential		2,529		2,529		144		—		2,546
Home equity loans		53		53		1		—		53
Commercial		46		47		—		—		62
Consumer and other loans		—		—		—		—		—
Total impaired loans with no specific reserve	$	4,738	$	4,739	$	160	$	—	$	4,792
TOTAL	$	7,479	$	7,491	$	206	$	941	$	7,883

			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	June 30, 2022		December 31, 2021
Accountable for under ASC 310-30 (PCI loans)
Outstanding balance	$	1,541	$	2,613
Carrying amount		1,137		2,181
Accountable for under ASC 310-20 (non-PCI loans)
Outstanding balance	$	160,938	$	203,596
Carrying amount		159,434		201,700
Total acquired loans
Outstanding balance	$	162,479	$	206,209
Carrying amount		160,571		203,881

Schedule of changes in accretable yield of acquired loans

Dollars in Thousands	June 30, 2022		December 31, 2021
Balance at beginning of period	$	1,896	$	3,361
Acquisitions		—		—
Accretion		(392)		(1,464)
Other changes, net		—		(1)
Balance at end of period	$	1,504	$	1,896