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Loans (Tables)
 3 Months Ended
Mar. 31, 2023
Receivables [Abstract]  
Schedule of Loans Receivable
Portfolio loans, net of deferred costs and fees, are summarized by type as follows at March 31, 2023 and December 31, 2022:
 March 31, 2023December 31, 2022
(dollars in thousands)Total% of Total LoansTotal% of Total Loans
Portfolio Loans:
Commercial real estate$1,265,519 68.63 %$1,232,826 67.69 %
Residential first mortgages78,186 4.24 %79,872 4.39 %
Residential rentals329,417 17.86 %338,292 18.58 %
Construction and land development18,474 1.00 %17,259 0.95 %
Home equity and second mortgages25,492 1.38 %25,602 1.41 %
Commercial loans40,666 2.20 %42,055 2.31 %
Consumer loans7,271 0.39 %6,272 0.34 %
Commercial equipment79,296 4.30 %78,890 4.33 %
Total portfolio loans (1)
1,844,321 100.00 %1,821,068 100.00 %
Less: Allowance for Credit Losses(23,515)(1.27)%(22,890)(1.26)%
Total net portfolio loans1,820,806 1,798,178 
U.S. SBA PPP loans (1)
— 339 
Total net loans$1,820,806 $1,798,517 
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(1)Excludes accrued interest receivable of $6.8 million and $6.6 million, at March 31, 2023 and December 31, 2022, respectively.
Non-accrual Loans
Non-accrual loans as of March 31, 2023 and December 31, 2022 were as follows:
March 31, 2023
(dollars in thousands)Nonaccrual with No Allowance for Credit LossesNonaccrual with Allowance for Credit LossesTotal Nonaccrual Loans
Commercial real estate$4,498 $1,391 $5,889 
Residential rentals1,631 — 1,631 
Home equity and second mortgages444 — 444 
Consumer loans— 9 9 
Commercial equipment124 27 151 
Total$6,697 $1,427 $8,124 
Interest Income on Nonaccrual Loans$63 $— $63 
December 31, 2022
(dollars in thousands)Nonaccrual with No Allowance for Credit LossesNonaccrual with Allowance for Credit LossesTotal 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 $— $121 
March 31, 2023
(dollars in thousands)Non-accrual Delinquent LoansNon-accrual Current LoansTotal Non-accrual Loans
Commercial real estate$— $5,889 $5,889 
Residential rentals274 1,357 1,631 
Home equity and second mortgages444 — 444 
Consumer loans9 — 9 
Commercial equipment— 151 151 
$727 $7,397 $8,124 
 December 31, 2022
(dollars in thousands)Non-accrual Delinquent LoansNon-accrual Current LoansTotal Non-accrual Loans
Commercial real estate$— $4,602 $4,602 
Residential first mortgages— — — 
Residential rentals449 693 1,142 
Home equity and second mortgages206 — 206 
Commercial equipment— 165 165 
U.S. SBA PPP loans— — — 
$655 $5,460 $6,115 
The following table presents the amortized cost basis of collateral-dependent loans by class of loans.
March 31, 2023December 31, 2022
(dollars in thousands)Business/Other AssetsReal EstateBusiness/Other AssetsReal Estate
Commercial real estate$— $5,889 $— $4,601 
Residential rentals— 1,631 — 1,142 
Home equity and second mortgages— 444 — 206 
Consumer loans9 — — — 
Commercial equipment151 — 595 — 
Total$160 $7,964 $595 $5,949 
Past Due Financing Receivables An analysis of days past due ("DPD") loans as of March 31, 2023 follows:
 March 31, 2023
(dollars in thousands)31-60 DPD61-89 DPD90 DPD and Still Accruing90 DPD and Not AccruingTotal Past DueCurrent Non-Accrual LoansCurrent Accrual LoansTotal Loans
Commercial real estate$525 $— $— $— $525 $5,889 $1,259,105 $1,265,519 
Residential first mortgages— — — — — — 78,186 78,186 
Residential rentals— — — 274 274 1,357 327,786 329,417 
Construction and land development— — — — — — 18,474 18,474 
Home equity and second mortgages263 70 — 205 538 — 24,954 25,492 
Commercial loans— — — — — — 40,666 40,666 
Consumer loans66 30 35 — 131 — 7,140 7,271 
Commercial equipment— — — — — 151 79,145 79,296 
Total Loans$854 $100 $35 $479 $1,468 $7,397 $1,835,456 $1,844,321 
Loan delinquency (total past due) increased $0.4 million from $1.0 million, or 0.06% of loans, at December 31, 2022 to $1.5 million, or 0.08% of loans, at March 31, 2023.
An analysis of days past due loans as of December 31, 2022 follows:
 December 31, 2022
(dollars in thousands)31-60 DPD61-89 DPD90 DPD and Still Accruing90 DPD and Not AccruingTotal Past DueCurrent Non-Accrual LoansCurrent Accrual LoansTotal 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 development— — — — — — 17,259 17,259 
Home equity and second mortgages53 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 
Allowance for Credit Losses on Financing Receivables
The following tables detail activity in the ACL at and for the three months ended March 31, 2023 and 2022. 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.
Three Months EndedMarch 31, 2023
(dollars in thousands)Beginning BalanceCharge-offsRecoveriesProvisionsEnding Balance
Commercial real estate$17,650 $— $16 $726 $18,392 
Residential first mortgages207 — — (4)203 
Residential rentals3,061 — — (156)2,905 
Construction and land development160 — — 1 161 
Home equity and second mortgages126 — — 5 131 
Commercial loans190 — — 14 204 
Consumer loans154 (44)— 56 166 
Commercial equipment1,342 (21)4 28 1,353 
 $22,890 $(65)$20 $670 $23,515 
Three Months EndedMarch 31, 2022
(dollars in thousands)Beginning BalanceImpact of ASC 326 AdoptionCharge-offsRecoveriesProvisionsEnding Balance
Commercial real estate$13,095 $3,734 $— $— $484 $17,313 
Residential first mortgages1,002 (679)— — (39)284 
Residential rentals2,175 (586)— — (43)1,546 
Construction and land development260 (82)— — (41)137 
Home equity and second mortgages274 (86)— — (10)178 
Commercial loans582 (290)— 1 26 319 
Consumer loans58 2 — — 13 73 
Commercial equipment971 483 — 18 60 1,532 
$18,417 $2,496 $— $19 $450 $21,382 
Credit Quality Indicators
Credit quality indicators as of March 31, 2023 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)Prior20192020202120222023Revolving LoansTotal
Commercial Real Estate
Pass$393,557 $108,531 $175,180 $261,755 $287,060 $23,827 $— $1,249,910 
Special Mention4,167 — 5,553 — — — — 9,720 
Substandard2,088 2,960 — 841 — — — 5,889 
Total$399,812 $111,491 $180,733 $262,596 $287,060 $23,827 $— $1,265,519 
Current Period Gross Write-off$— $— $— $— $— $— $— $— 
Residential Rentals
Pass$46,757 $20,527 $47,452 $72,733 $119,293 $21,024 $— $327,786 
Special Mention— — — — — — — — 
Substandard1,631 — — — — — — 1,631 
Total$48,388 $20,527 $47,452 $72,733 $119,293 $21,024 $— $329,417 
Current Period Gross Write-off$— $— $— $— $— $— $— $— 
Construction and Land Development
Pass$11,181 $2,595 $631 $3,360 $148 $559 $— $18,474 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Total$11,181 $2,595 $631 $3,360 $148 $559 $— $18,474 
Current Period Gross Write-off$— $— $— $— $— $— $— $— 
Commercial Loans
Pass$25,502 $2,260 $1,985 $6,258 $3,708 $953 $— $40,666 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Total$25,502 $2,260 $1,985 $6,258 $3,708 $953 $— $40,666 
Current Period Gross Write-off$— $— $— $— $— $— $— $— 
Commercial Equipment
Pass$11,833 $13,361 $6,536 $12,185 $30,638 $4,426 $— $78,979 
Special Mention165 — — — — — — 165 
Substandard— 124 — — 28 — — 152 
Total$11,998 $13,485 $6,536 $12,185 $30,666 $4,426 $— $79,296 
Current Period Gross Write-off$(21)$— $— $— $— $— $— $(21)
Term Loans by Origination Year
(dollars in thousands)Prior20192020202120222023Revolving LoansTotal
Total loans by risk category$496,881 $150,358 $237,337 $357,132 $440,875 $50,789 $— $1,733,372 
Loans evaluated by performance category are as follows:
Term Loans by Origination Year
(dollars in thousands)Prior20192020202120222023Revolving LoansTotal
Residential First Mortgages
Performing$39,629 $19,273 $8,465 $5,178 $5,641 $— $— $78,186 
Non-performing— — — — — — — — 
Total$39,629 $19,273 $8,465 $5,178 $5,641 $— $— $78,186 
Current Period Gross Write-off$— $— $— $— $— $— $— $— 
Home Equity and Second Mortgages
Performing$15,259 $1,012 $1,244 $3,599 $3,729 $205 $— $25,048 
Non-performing444 — — — — — — 444 
Total$15,703 $1,012 $1,244 $3,599 $3,729 $205 $— $25,492 
Current Period Gross Write-off$— $— $— $— $— $— $— $— 
Consumer Loans
Performing$46 $69 $101 $573 $774 $271 $5,437 $7,271 
Non-performing— — — — 
Total$46 $69 $101 $573 $774 $271 $5,437 $7,271 
Current Period Gross Write-off$— $— $— $— $— $— $(44)$(44)
Total loans evaluated by performing status$55,378 $20,354 $9,810 $9,350 $10,144 $476 $5,437 $110,949 
Total Recorded Investment$552,259 $170,712 $247,147 $366,482 $451,019 $51,265 $5,437 $1,844,321 
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 
TDRs, Included in Impaired Loans Schedule
BEFD modifications included in the individually assessed loan schedules above, as of March 31, 2023 and December 31, 2022 were as follows:
 March 31, 2023December 31, 2022
(dollars in thousands)Number of LoansRecorded InvestmentsNumber of LoansRecorded Investments
Commercial equipment1$27 2$457 
Total BEFD modifications (1)
1$27 2$457 
Less: BEFD modifications included in non-accrual loans127 128 
Total accrual BEFD modifications loans—$— 1$429 
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(1)On January 1, 2023, the Company adopted ASU 2022-02 – Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminated the TDR recognition and measurement guidance. As such, loans designated as TDRs prior to January 1, 2023 and are currently performing are no longer reported as a BEFD loan in the quarter ending March 31, 2023, while prior period amounts continue to be reported in accordance with previously applicable GAAP.