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

9 Months Ended

Sep. 30, 2022

Loans, Allowance for Credit Losses and Impaired Loans

Schedule of major categories of loans

(Dollars in thousands)	September 30, 2022		December 31, 2021
Originated Loans
Real Estate Mortgage
Construction and land development	$	119,172	$	107,478
Residential real estate		196,772		159,701
Nonresidential		603,738		513,873
Home equity loans		21,769		19,246
Commercial		113,814		109,470
Consumer and other loans		3,159		3,546
		1,058,424		913,314
Acquired Loans
Real Estate Mortgage
Construction and land development	$	39	$	505
Residential real estate		27,549		41,529
Nonresidential		94,576		128,344
Home equity loans		9,000		11,149
Commercial		13,859		21,438
Consumer and other loans		513		916
		145,536		203,881
Total Loans
Real Estate Mortgage
Construction and land development	$	119,211	$	107,983
Residential real estate		224,321		201,230
Nonresidential		698,314		642,217
Home equity loans		30,769		30,395
Commercial		127,673		130,908
Consumer and other loans		3,672		4,462
		1,203,960		1,117,195
Less: Allowance for credit losses		(13,818)		(14,656)
	$	1,190,142	$	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 September 30, 2022
Purchased credit impaired loans
Balance in allowance	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Related loan balance		—		715		353		—		18		—		—		1,086
Individually evaluated for impairment:
Balance in allowance	$	—	$	21	$	—	$	—	$	279	$	—	$	—	$	300
Related loan balance		575		1,731		4,092		53		337		—		—		6,788
Collectively evaluated for impairment:
Balance in allowance	$	1,093	$	1,962	$	8,163	$	248	$	1,612	$	86	$	354	$	13,518
Related loan balance		118,636		221,875		693,869		30,716		127,318		3,672		—		1,196,086

	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

	September 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	$	935	$	1,869	$	9,203	$	234	$	1,663	$	31	$	124	$	14,059
Charge-offs		—		—		(659)		—		(47)		(16)		—		(722)
Recoveries		1		16		6		—		2		37		—		62
Provision/(recovery)		157		98		(387)		14		273		34		230		419
Ending Balance	$	1,093	$	1,983	$	8,163	$	248	$	1,891	$	86	$	354	$	13,818
Nine Months Ended
Beginning Balance	$	1,143	$	1,893	$	9,239	$	212	$	1,885	$	36	$	248	$	14,656
Charge-offs		—		—		(1,545)		(27)		(167)		(41)		—		(1,780)
Recoveries		—		56		22		6		13		42		—		139
Provision/(recovery)		(50)		34		447		57		160		49		106		803
Ending Balance	$	1,093	$	1,983	$	8,163	$	248	$	1,891	$	86	$	354	$	13,818

	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 &
September 30, 2022	Development		Real Estate		Nonresidential		Home Equity		Commercial		Other		Total
	Dollars in Thousands
Pass	$	118,636	$	222,647	$	691,287	$	30,671	$	126,214	$	3,325	$	1,192,780
Marginal		—		—		4,873		—		1,122		347		6,342
Substandard		575		1,674		2,154		98		337		—		4,838
TOTAL	$	119,211	$	224,321	$	698,314	$	30,769	$	127,673	$	3,672	$	1,203,960
Nonaccrual	$	576	$	1,243	$	1,894	$	—	$	337	$	—	$	4,050

	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 September 30, 2022
Number of loans modified during the period		—		—		—		—		—		—		—
Pre-modification recorded balance	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Post- modification recorded balance		—		—		—		—		—		—		—
Nine months ended September 30, 2022
Number of loans modified during the period		—		1		—		—		—		—		1
Pre-modification recorded balance	$	—	$	48	$	—	$	—	$	—	$	—	$	48
Post- modification recorded balance		—		48		—		—		—		—		48
Three months ended September 30, 2021
Number of loans modified during the period		—		—		1		—		—		—		1
Pre-modification recorded balance	$	—	$	—	$	2,919	$	—	$	—	$	—	$	2,919
Post- modification recorded balance		—		—		2,907		—		—		—		2,907
Nine months ended September 30, 2021
Number of loans modified during the period		—		—		2		—		—		—		2
Pre-modification recorded balance	$	—	$	—	$	3,197	$	—	$	—	$	—	$	3,197
Post- modification recorded balance		—		—		2,907		—		—		—		2,907

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 September 30, 2022	Past Due		Past Due *		Past Due**		Past Due		Balance***		Receivables		and Accruing
	Dollars in Thousands
Real Estate Mortgage
Construction and land development	$	—	$	—	$	575	$	575	$	118,636	$	119,211	$	—
Residential real estate		207		1,081		380		1,668		222,653		224,321		230
Nonresidential		427		—		311		738		697,576		698,314		—
Home equity loans		—		—		45		45		30,724		30,769		45
Commercial		—		7		—		7		127,666		127,673		—
Consumer and other loans		1		—		—		1		3,671		3,672		—
TOTAL	$	635	$	1,088	$	1,311	$	3,034	$	1,200,926	$	1,203,960	$	275

* Includes $223 thousand of nonaccrual loans.

** Includes $1.0 million of nonaccrual loans.

*** Includes $2.8 million 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
September 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		24		24		1		21		25
Nonresidential		—		—		—		—		—
Home equity loans		—		—		—		—		—
Commercial		337		348		32		279		367
Consumer and other loans		—		—		—		—		—
Total impaired loans with specific reserves	$	361	$	372	$	33	$	300	$	392
Impaired loans with no specific reserve:
Real Estate Mortgage
Construction and land development	$	575	$	575	$	5	$	—	$	533
Residential real estate		1,707		1,707		30		—		1,742
Nonresidential		4,092		4,092		241		—		4,776
Home equity loans		53		53		1		—		53
Commercial		—		—		—		—		—
Consumer and other loans		—		—		—		—		—
Total impaired loans with no specific reserve	$	6,427	$	6,427	$	277	$	—	$	7,104
TOTAL	$	6,788	$	6,799	$	310	$	300	$	7,496

			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	September 30, 2022		December 31, 2021
Accountable for under ASC 310-30 (PCI loans)
Outstanding balance	$	1,499	$	2,613
Carrying amount		1,086		2,181
Accountable for under ASC 310-20 (non-PCI loans)
Outstanding balance	$	145,846	$	203,596
Carrying amount		144,450		201,700
Total acquired loans
Outstanding balance	$	147,345	$	206,209
Carrying amount		145,536		203,881

Schedule of changes in accretable yield of acquired loans

Dollars in Thousands	September 30, 2022		December 31, 2021
Balance at beginning of period	$	1,896	$	3,361
Accretion		(500)		(1,464)
Other changes, net		—		(1)
Balance at end of period	$	1,396	$	1,896