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Loans (Tables)
 12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Schedule of Loans Receivable
Portfolio loans, net of deferred costs and fees, are summarized by type as follows at December 31, 2022:
December 31, 2022
(dollars in thousands)Total% of Total Loans
Portfolio Loans:
Commercial real estate$1,232,826 67.69 %
Residential first mortgages79,872 4.39 %
Residential rentals338,292 18.58 %
Construction and land development17,259 0.95 %
Home equity and second mortgages25,602 1.41 %
Commercial loans42,055 2.31 %
Consumer loans6,272 0.34 %
Commercial equipment78,890 4.33 %
Total portfolio loans (1)
1,821,068 100.00 %
Less: Allowance for Credit Losses(22,890)(1.26)%
Total net portfolio loans1,798,178 
U.S. SBA PPP loans (1)
339 

Total net loans1,798,517 
Portfolio loans are summarized by type as follows at December 31, 2021:
Portfolio Loans:December 31, 2021
Commercial real estate$1,115,485 70.66 %
Residential first mortgages91,120 5.77 %
Residential rentals195,035 12.35 %
Construction and land development35,590 2.25 %
Home equity and second mortgages25,638 1.62 %
Commercial loans50,574 3.20 %
Consumer loans3,002 0.19 %
Commercial equipment62,499 3.96 %
Gross portfolio loans (1)
1,578,943 100.00 %
Adjustments:
Net deferred costs(133)(0.01)%
Allowance for loan losses(18,417)(1.17)%
(18,550)
Net portfolio loans1,560,393 
Gross U.S. SBA PPP loans (1)
27,276 

Net deferred fees(878)
Net U.S. SBA PPP Loans26,398 
Total net loans$1,586,791 
Total gross loans$1,606,219 
(1)Excludes accrued interest receivable of $6.6 million and $4.5 million, at December 31, 2022 and December 31, 2021, respectively.
Non-accrual loans
Non-accrual loans as of December 31, 2022 and 2021 were as follows:
December 31, 2022
(dollars in thousands)
Nonaccrual with No Allowance for Credit Losses
Nonaccrual with Allowance for Credit Losses
Total Nonaccrual Loans
Commercial real estate$4,521 $81 $4,602 
Residential rentals1,142 — 1,142 
Home equity and second mortgages206 — 206 
Commercial equipment137 28 165 
Total$6,006 $109 $6,115 
Interest Income on Nonaccrual Loans$121 $— $121 


December 31, 2022
(dollars in thousands)

Non- accrual Delinquent Loans

Non-accrual Current Loans

Total Non-accrual Loans
Commercial real estate

$— 

$4,602 

$4,602 
Residential rentals

449 

693 

1,142 
Home equity and second mortgages

206 

— 

206 
Commercial equipment

— 

165 

165 


$655 

$5,460 

$6,115 


December 31, 2021
(dollars in thousands)

Non- accrual Delinquent Loans

Non-accrual Current Loans

Total Non-accrual Loans
Commercial real estate

$— 

$4,890 

$4,890 
Residential first mortgages

450 

— 

450 
Residential rentals

252 

690 

942 
Home equity and second mortgages

202 

399 

601 
Commercial equipment

— 

691 

691 
U.S. SBA PPP loans

57 

— 

57 


$961 

$6,670 

$7,631 
The following table presents the amortized cost basis of collateral-dependent loans by class of loans.
Collateral Dependent LoansDecember 31, 2022
(dollars in thousands)Business/Other AssetsReal Estate
Commercial real estate$— $4,601 
Residential rentals— 1,142 
Home equity and second mortgages— 206 
Commercial equipment595 — 
Total$595 $5,949 
Past Due Financing Receivables


December 31, 2022
(dollars in thousands)

31-60 DPD

61-89 DPD**

90 DPD and Still Accruing

90 DPD and Not Accruing

Total Past Due

Current Non-Accrual Loans

Current Accrual Loans

Total Loans
Commercial real estate$147 $— $— $— $147 $4,602 $1,228,077 $1,232,826 
Residential first mortgages— — — — — — 79,872 79,872 
Residential rentals— 177 — 272 449 693 337,150 338,292 
Construction and land dev.— — — — — — 17,259 17,259 
Home equity and second mtg.53 160 — 116 329 25,273 25,602 
Commercial loans— — — — — — 42,055 42,055 
Consumer loans21 35 50 — 106 — 6,166 6,272 
Commercial equipment11 — — — 11 165 78,714 78,890 
U.S. SBA PPP loans — — — — — — 339 339 
Total portfolio loans$232 $372 $50 $388 $1,042 $5,460 $1,814,905 $1,821,407 
** Includes two loans totaling $0.3 million that are on non-accrual status
An analysis of past due loans as of December 31, 2021 follows:


December 31, 2021
(dollars in thousands)

31-60 Days

61-89 Days

90 or Greater Days

Total Past Due

PCI Loans

Current

Total Loan Receivables
Commercial real estate$— $— $— $— $1,116 $1,114,369 $1,115,485 
Residential first mortgages— 277 450 727 — 90,393 91,120 
Residential rentals— 42 252 294 — 194,741 195,035 
Construction and land dev.— — — — — 35,590 35,590 
Home equity and second mtg.200 — 202 402 — 25,236 25,638 
Commercial loans— — — — — 50,574 50,574 
Consumer loans— — — — — 3,002 3,002 
Commercial equipment— — — — — 62,499 62,499 
Total portfolio loans$200 $319 $904 $1,423 $1,116 $1,576,404 $1,578,943 
U.S. SBA PPP loans$9 $40 $57 $106 $— $27,170 $27,276 
Allowance for Credit Losses on Financing Receivables
The following tables detail activity in the ACL at and for the years ended December 31, 2022 and 2021, respectively. An allocation of the allowance to one category of loans does not prevent the Company from using that allowance to absorb losses in a different category.
Year EndedDecember 31, 2022
(dollars in thousands)
Beginning Balance
Impact of ASC 326 Adoption
Charge-offs
Recoveries
Provisions
Ending Balance
Commercial real estate$13,095 $3,734 $(280)$16 $1,085 $17,650 
Residential first mortgages1,002 (679)(111)14 (19)207 
Residential rentals2,175 (586)— — 1,472 3,061 
Construction and land development260 (82)— — (18)160 
Home equity and second mortgages274 (86)— 1 (63)126 
Commercial loans582 (290)(99)2 (5)190 
Consumer loans58 2 (49)— 143 154 
Commercial equipment971 483 (29)75 (158)1,342 
Total$18,417 $2,496 $(568)$108 $2,437 $22,890 
Year EndedDecember 31, 2021
(dollars in thousands)Beginning BalanceCharge-offsRecoveriesProvisionsEnding Balance
Commercial real estate$13,744 $(1,920)$6 $1,265 $13,095 
Residential first mortgages1,305 (142)— (161)1,002 
Residential rentals1,413 (46)— 808 2,175 
Construction and land development401 — — (141)260 
Home equity and second mortgages261 — 5 8 274 
Commercial loans1,222 (76)543 (1,107)582 
Consumer loans20 — — 38 58 
Commercial equipment1,058 (34)71 (124)971 
Total$19,424 $(2,218)$625 $586 $18,417 
** There is no allowance for loan loss on the PCI or the SBA PPP portfolios. A more detailed rollforward schedule will be presented if an allowance is required.
Credit Quality Indicators
Credit quality indicators as of December 31, 2022 were as follows:
Credit Risk Profile by Internally Assigned Grade
The risk category of loans by class of loans is as follows:
Term Loans by Origination Year
(dollars in thousands)Prior20182019202020212022Revolving LoansTotal
Commercial Real Estate
Pass$329,575 $73,742 $107,264 $184,263 $272,567 $256,622 $— $1,224,033 
Special Mention— 4,191 — — — — — 4,191 
Substandard792 — 2,967 — 843 — — 4,602 
Total$330,367 $77,933 $110,231 $184,263 $273,410 $256,622 $— $1,232,826 
Residential Rentals
Pass$44,257 $4,429 $20,690 $48,237 $65,889 $153,648 $— $337,150 
Special Mention— — — — — — — — 
Substandard1,142 — — — — — — 1,142 
Total$45,399 $4,429 $20,690 $48,237 $65,889 $153,648 $— $338,292 
Construction and Land Development
Pass$2,355 $7,788 $4,255 $729 $2,020 $112 $— $17,259 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Total$2,355 $7,788 $4,255 $729 $2,020 $112 $— $17,259 
Commercial Loans
Pass$23,225 $4,298 $2,463 $1,872 $6,420 $3,777 $— $42,055 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Total$23,225 $4,298 $2,463 $1,872 $6,420 $3,777 $— $42,055 
Commercial Equipment
Pass$8,206 $4,411 $14,329 $7,346 $12,948 $31,315 $— $78,555 
Special Mention— 170 — — — — — 170 
Substandard— — 137 — — 28 — 165 
Total$8,206 $4,581 $14,466 $7,346 $12,948 $31,343 $— $78,890 
Total loans by risk category$409,552 $99,029 $152,105 $242,447 $360,687 $445,502 $— $1,709,322 
Loans evaluated by performance category are as follows:
Term Loans by Origination Year
(dollars in thousands)Prior20182019202020212022Revolving LoansTotal
Residential First Mortgages
Performing$37,428 $3,584 $19,411 $8,523 $5,235 $5,691 $— $79,872 
Non-performing— — — — — — — — 
Total$37,428 $3,584 $19,411 $8,523 $5,235 $5,691 $— $79,872 
Home Equity and Second Mortgages
Performing$14,319 $1,622 $1,041 $1,441 $3,812 $3,161 $— $25,396 
Non-performing206 — — — — — — 206 
Total$14,525 $1,622 $1,041 $1,441 $3,812 $3,161 $— $25,602 
Consumer Loans
Performing$49 $2 $96 $118 $618 $881 $4,508 $6,272 
Non-performing— — — — — — — — 
Total$49 $2 $96 $118 $618 $881 $4,508 $6,272 
U.S. SBA PPP Loans
Performing$— $— $— $— $339 $— $— $339 
Non-performing— — — — — — — — 
Total$— $— $— $— $339 $— $— $339 
Total loans evaluated by performing status$52,002 $5,208 $20,548 $10,082 $10,004 $9,733 $4,508 $112,085 
Total Recorded Investment$461,554 $104,237 $172,653 $252,529 $370,691 $455,235 $4,508 $1,821,407 
Credit Quality Indicators
Credit quality indicators as of December 31, 2021 were as follows:
Credit Risk Profile by Internally Assigned Grade
(dollars in thousands)
Commercial Real Estate
Construction and Land Development
Residential Rentals
Commercial Loans
Commercial Equipment
Total Commercial Portfolios
12/31/202112/31/202112/31/202112/31/202112/31/202112/31/2021
Unrated$— $— $— $— $— $— 
Pass1,111,857 35,590 194,093 50,574 62,326 1,454,440 
Special mention— — — — — — 
Substandard3,628 — 942 — 173 4,743 
Doubtful— — — — — — 
Loss— — — — — — 
Total$1,115,485 $35,590 $195,035 $50,574 $62,499 $1,459,183 
(dollars in thousands)
Non-Commercial Portfolios **
U.S. SBA PPP Loans
Total All Portfolios
12/31/202112/31/202112/31/2021
Unrated$100,403 $27,276 $127,679 
Pass18,889 — 1,473,329 
Special mention— — — 
Substandard468 — 5,211 
Doubtful— — — 
Loss— — — 
Total$119,760 $27,276 $1,606,219 
** Non-commercial portfolios are generally evaluated based on payment activity but may be risk graded if part of a larger commercial relationship or are credit impaired (e.g., non-accrual loans, TDRs).
Credit Risk Profile Based on Payment Activity
(dollars in thousands)
Residential First Mortgages
Home Equity and Second Mortgages
Consumer Loans
12/31/202112/31/202112/31/2021
Performing$90,670 $25,436 $3,002 
Nonperforming450 202 — 
Total$91,120 $25,638 $3,002 
TDRs, Included in Impaired Loans Schedule
TDRs, included in the impaired loan schedules above, as of December 31, 2022 and 2021 were as follows:
December 31, 2022December 31, 2021
(dollars in thousands)Number of LoansRecorded InvestmentNumber of LoansRecorded Investment
Commercial real estate—$— —$— 
Commercial equipment2457 1447 
Total TDRs2$457 1$447 
Less: TDRs included in non-accrual loans128 —— 
Total accrual TDR loans1$429 1$447 
Impaired Loans, Including TDRs
Impaired loans, including TDRs, at December 31, 2021 were as follows:


December 31, 2021
(dollars in thousands)

Unpaid Contractual Principal Balance

Recorded Investment with No Allowance

Recorded Investment with Allowance

Total Recorded Investment

Related Allowance

YTD Average Recorded Investment

YTD Interest Income Recognized
Commercial real estate$4,994 $4,797 $93 $4,890 $93 $4,866 $254 
Residential first mortgages879 866 — 866 — 874 32 
Residential rentals982 942 — 942 — 959 48 
Home equity and second mtg.626 601 — 601 — 604 14 
Commercial equipment1,200 1,022 173 1,195 173 2,184 99 
Total$8,681 $8,228 $266 $8,494 $266 $9,487 $447 
Loan Receivable and Allowance Balances Disaggregated The following table details loan receivable and allowance balances disaggregated on the basis of the Company’s impairment methodology at December 31, 2021.
December 31, 2021
(dollars in thousands)Ending balance:
individually evaluated for impairment		Ending balance:
collectively evaluated for impairment		Purchase Credit ImpairedTotal
Loan Receivables:
Commercial real estate$4,890 $1,109,479 $1,116 $1,115,485 
Residential first mortgages866 90,254 — 91,120 
Residential rentals942 194,093 — 195,035 
Construction and land development— 35,590 — 35,590 
Home equity and second mortgages601 25,037 — 25,638 
Commercial loans— 50,574 — 50,574 
Consumer loans— 3,002 — 3,002 
Commercial equipment1,195 61,304 — 62,499 
$8,494 $1,569,333 $1,116 $1,578,943 
Allowance for credit losses:
Commercial real estate$93 $13,002 $— $13,095 
Residential first mortgages— 1,002 — 1,002 
Residential rentals— 2,175 — 2,175 
Construction and land development— 260 — 260 
Home equity and second mortgages— 274 — 274 
Commercial loans— 582 — 582 
Consumer loans— 58 — 58 
Commercial equipment173 798 — 971 
$266 $18,151 $— $18,417 
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Table
(dollars in thousands)
December 31, 2021
Accretable yield, beginning of period$342 
Additions— 
Accretion(117)
Reclassification from nonaccretable difference43 
Other changes, net55 
Accretable yield, end of period$323 
Summary Of Acquired And Non Acquired Loans Table
The following is a summary of acquired and non-acquired loans as of December 31, 2021:
BY ACQUIRED AND NON-ACQUIREDDecember 31, 2021%
Acquired loans - performing$41,066 2.56 %
Acquired loans - purchase credit impaired ("PCI")1,116 0.07 %
Total acquired loans42,182 2.63 %
Non-acquired loans**1,536,761 95.68 %
U.S. SBA PPP loans27,276 1.70 %
Gross loans1,606,219 
Net deferred costs (fees)(1,011)(0.06)%
Total loans, net of deferred costs$1,605,208 
** Non-acquired loans include loans transferred from acquired pools following release of acquisition accounting FMV adjustments.
Related Party Loans Activity in loans outstanding to executive officers and directors and their related interests are summarized as follows:
(dollars in thousands)
At and For the Years Ended December 31,
20222021
Balance, beginning of period
$26,267 $16,367 
Loans and additions
13,629 2,218 
Change in Directors' status
(4,053)23,752 
Repayments
(6,991)(16,070)
Balance, end of period
$28,852 $26,267