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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