Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2022

Loans and Allowance for Loan Losses

Schedule of total loans outstanding by portfolio segment

	March 31,		December 31,
(dollars in thousands)	2022		2021
Commercial
Commercial and industrial (1)	$	467,449	$	436,761
Real estate construction		41,604		40,619
Commercial real estate		602,158		598,893
Total commercial		1,111,211		1,076,273
Consumer
Residential real estate first mortgage		522,489		510,716
Residential real estate junior lien		130,604		125,668
Other revolving and installment		53,738		45,363
Total consumer		706,831		681,747
Total loans	$	1,818,042	$	1,758,020

(1) Included Paycheck Protection Program, or PPP, loans of $13.1 million at March 31, 2022 and $33.6 million at December 31, 2021.

Schedule of past due aging analysis of the loan portfolio

	March 31, 2022
					90 Days
	Accruing		30 - 89 Days		or More				Total
(dollars in thousands)	Current		Past Due		Past Due		Nonaccrual		Loans
Commercial
Commercial and industrial	$	465,678	$	218	$	146	$	1,407	$	467,449
Real estate construction		41,604		—		—		—		41,604
Commercial real estate		601,087		442		—		629		602,158
Total commercial		1,108,369		660		146		2,036		1,111,211
Consumer
Residential real estate first mortgage		520,043		687		—		1,759		522,489
Residential real estate junior lien		129,934		445		—		225		130,604
Other revolving and installment		53,518		171		—		49		53,738
Total consumer		703,495		1,303		—		2,033		706,831
Total loans	$	1,811,864	$	1,963	$	146	$	4,069	$	1,818,042

	December 31, 2021
					90 Days
	Accruing		30 - 89 Days		or More				Total
(dollars in thousands)	Current		Past Due		Past Due		Nonaccrual		Loans
Commercial
Commercial and industrial	$	435,135	$	168	$	121	$	1,337	$	436,761
Real estate construction		40,619		—		—		—		40,619
Commercial real estate		598,264		—		—		629		598,893
Total commercial		1,074,018		168		121		1,966		1,076,273
Consumer
Residential real estate first mortgage		508,925		1,770		—		21		510,716
Residential real estate junior lien		125,412		167		—		89		125,668
Other revolving and installment		45,242		121		—		—		45,363
Total consumer		679,579		2,058		—		110		681,747
Total loans	$	1,753,597	$	2,226	$	121	$	2,076	$	1,758,020

Schedule of loans outstanding, by portfolio segment and risk category

	March 31, 2022
			Criticized
			Special
(dollars in thousands)	Pass		Mention		Substandard		Doubtful		Total
Commercial
Commercial and industrial	$	463,278	$	—	$	4,171	$	—	$	467,449
Real estate construction		41,604		—		—		—		41,604
Commercial real estate		592,748		—		9,410		—		602,158
Total commercial		1,097,630		—		13,581		—		1,111,211
Consumer
Residential real estate first mortgage		520,438		—		2,051		—		522,489
Residential real estate junior lien		129,830		—		774		—		130,604
Other revolving and installment		53,689		—		49		—		53,738
Total consumer		703,957		—		2,874		—		706,831
Total loans	$	1,801,587	$	—	$	16,455	$	—	$	1,818,042

	December 31, 2021
			Criticized
			Special
(dollars in thousands)	Pass		Mention		Substandard		Doubtful		Total
Commercial
Commercial and industrial	$	430,235	$	480	$	6,046	$	—	$	436,761
Real estate construction		40,619		—		—		—		40,619
Commercial real estate		585,291		—		13,602		—		598,893
Total commercial		1,056,145		480		19,648		—		1,076,273
Consumer
Residential real estate first mortgage		510,375		—		341		—		510,716
Residential real estate junior lien		124,898		—		770		—		125,668
Other revolving and installment		45,363		—		—		—		45,363
Total consumer		680,636		—		1,111		—		681,747
Total loans	$	1,736,781	$	480	$	20,759	$	—	$	1,758,020

Summary of changes in allowances

	Three months ended March 31, 2022
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	8,925	$	771	$	(27)	$	126	$	9,795
Real estate construction		783		27		—		—		810
Commercial real estate		12,376		(441)		—		11		11,946
Total commercial		22,084		357		(27)		137		22,551
Consumer
Residential real estate first mortgage		6,532		129		—		—		6,661
Residential real estate junior lien		1,295		92		—		13		1,400
Other revolving and installment		481		145		(18)		36		644
Total consumer		8,308		366		(18)		49		8,705
Unallocated		1,180		(723)		—		—		457
Total	$	31,572	$	—	$	(45)	$	186	$	31,713

	Three months ended March 31, 2021
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	10,205	$	316	$	(204)	$	170	$	10,487
Real estate construction		658		(60)		—		—		598
Commercial real estate		14,105		277		(536)		3		13,849
Total commercial		24,968		533		(740)		173		24,934
Consumer
Residential real estate first mortgage		5,774		273		—		—		6,047
Residential real estate junior lien		1,373		(168)		—		83		1,288
Other revolving and installment		753		(83)		(44)		40		666
Total consumer		7,900		22		(44)		123		8,001
Unallocated		1,378		(555)		—		—		823
Total	$	34,246	$	—	$	(784)	$	296	$	33,758

Schedule of loans distributed by portfolio segment and impairment methodology

	March 31, 2022
	Recorded Investment						Allowance for Loan Losses
	Individually		Collectively				Individually		Collectively
(dollars in thousands)	Evaluated		Evaluated		Total		Evaluated		Evaluated		Total
Commercial
Commercial and industrial	$	1,584	$	465,865	$	467,449	$	339	$	9,456	$	9,795
Real estate construction		—		41,604		41,604		—		810		810
Commercial real estate		806		601,352		602,158		4		11,942		11,946
Total commercial		2,390		1,108,821		1,111,211		343		22,208		22,551
Consumer
Residential real estate first mortgage		1,759		520,730		522,489		—		6,661		6,661
Residential real estate junior lien		226		130,378		130,604		—		1,400		1,400
Other revolving and installment		49		53,689		53,738		18		626		644
Total consumer		2,034		704,797		706,831		18		8,687		8,705
Unallocated		—		—		—		—		—		457
Total loans	$	4,424	$	1,813,618	$	1,818,042	$	361	$	30,895	$	31,713

	December 31, 2021
	Recorded Investment						Allowance for Loan Losses
	Individually		Collectively				Individually		Collectively
(dollars in thousands)	Evaluated		Evaluated		Total		Evaluated		Evaluated		Total
Commercial
Commercial and industrial	$	1,831	$	434,930	$	436,761	$	278	$	8,647	$	8,925
Real estate construction		—		40,619		40,619		—		783		783
Commercial real estate		809		598,084		598,893		5		12,371		12,376
Total commercial		2,640		1,073,633		1,076,273		283		21,801		22,084
Consumer
Residential real estate first mortgage		21		510,695		510,716		—		6,532		6,532
Residential real estate junior lien		91		125,577		125,668		—		1,295		1,295
Other revolving and installment		—		45,363		45,363		—		481		481
Total consumer		112		681,635		681,747		—		8,308		8,308
Unallocated		—		—		—		—		—		1,180
Total loans	$	2,752	$	1,755,268	$	1,758,020	$	283	$	30,109	$	31,572

Schedule of impaired loans

	March 31, 2022						December 31, 2021
	Recorded		Unpaid		Related		Recorded		Unpaid		Related
(dollars in thousands)	Investment		Principal		Allowance		Investment		Principal		Allowance
Impaired loans with a valuation allowance
Commercial and industrial	$	508	$	532	$	339	$	445	$	464	$	278
Commercial real estate		177		199		4		180		203		5
Residential real estate junior lien		—		—		—		—		—		—
Other revolving and installment		40		40		18		—		—		—
Total impaired loans with a valuation allowance		725		771		361		625		667		283
Impaired loans without a valuation allowance
Commercial and industrial		1,076		1,188		—		1,386		1,575		—
Commercial real estate		629		684		—		629		684		—
Residential real estate first mortgage		1,759		1,759		—		21		24		—
Residential real estate junior lien		226		256		—		91		120		—
Other revolving and installment		9		9		—		—		—		—
Total impaired loans without a valuation allowance		3,699		3,896		—		2,127		2,403		—
Total impaired loans
Commercial and industrial		1,584		1,720		339		1,831		2,039		278
Commercial real estate		806		883		4		809		887		5
Residential real estate first mortgage		1,759		1,759		—		21		24		—
Residential real estate junior lien		226		256		—		91		120		—
Other revolving and installment		49		49		18		—		—		—
Total impaired loans	$	4,424	$	4,667	$	361	$	2,752	$	3,070	$	283

The table below presents the average recorded investment in impaired loans and interest income for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022				2021
	Average				Average
	Recorded		Interest		Recorded		Interest
(dollars in thousands)	Investment		Income		Investment		Income
Impaired loans with a valuation allowance
Commercial and industrial	$	528	$	3	$	1,816	$	13
Commercial real estate		180		2		2,793		138
Residential real estate junior lien		—		—		33		—
Other revolving and installment		41		—		38		—
Total impaired loans with a valuation allowance		749		5		4,680		151
Impaired loans without a valuation allowance
Commercial and industrial		1,126		—		1,258		22
Commercial real estate		642		—		2,158		—
Residential real estate first mortgage		1,759		—		435		—
Residential real estate junior lien		230		—		176		—
Other revolving and installment		9		—		—		—
Total impaired loans without a valuation allowance		3,766		—		4,027		22
Total impaired loans
Commercial and industrial		1,654		3		3,074		35
Commercial real estate		822		2		4,951		138
Residential real estate first mortgage		1,759		—		435		—
Residential real estate junior lien		230		—		209		—
Other revolving and installment		50		—		38		—
Total impaired loans	$	4,515	$	5	$	8,707	$	173