Loans and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2022

Loans and Allowance for Loan Losses

Schedule of total loans outstanding by portfolio segment

	December 31,		December 31,
(dollars in thousands)	2022		2021
Commercial
Commercial and industrial (1)	$	583,876	$	436,761
Real estate construction		97,810		40,619
Commercial real estate		881,670		598,893
Total commercial		1,563,356		1,076,273
Consumer
Residential real estate first mortgage		679,551		510,716
Residential real estate junior lien		150,479		125,668
Other revolving and installment		50,608		45,363
Total consumer		880,638		681,747
Total loans	$	2,443,994	$	1,758,020

(1) Includes PPP loans of $737 thousand at December 31, 2022 and $33.6 million at December 31, 2021.

Schedule of loan balances

	December 31,
(dollars in thousands)	2022
Real estate construction	$	440
Outstanding balance		440
Carrying amount		262
Allowance for loan losses		97
Carrying amount, net of allowance for loan losses	$	165

Schedule of accretable yield or income expected to be collected

	For the year ended
	December 31,
(dollars in thousands)	2022
Beginning balance	$	—
New loans purchased		225
Accretion of income		(48)
Ending balance	$	177

Schedule of past due aging analysis of the loan portfolio

	December 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	$	580,288	$	2,426	$	—	$	1,162	$	583,876
Real estate construction		97,370		—		—		440		97,810
Commercial real estate		879,830		368		—		1,472		881,670
Total commercial		1,557,488		2,794		—		3,074		1,563,356
Consumer
Residential real estate first mortgage		677,471		1,545		—		535		679,551
Residential real estate junior lien		149,918		377		—		184		150,479
Other revolving and installment		50,360		247		—		1		50,608
Total consumer		877,749		2,169		—		720		880,638
Total loans	$	2,435,237	$	4,963	$	—	$	3,794	$	2,443,994

	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

	December 31, 2022
			Criticized
			Special
(dollars in thousands)	Pass		Mention		Substandard		Doubtful		Total
Commercial
Commercial and industrial	$	558,694	$	21,969	$	3,213	$	—	$	583,876
Real estate construction		97,548		—		262		—		97,810
Commercial real estate		873,270		—		8,400		—		881,670
Total commercial		1,529,512		21,969		11,875		—		1,563,356
Consumer
Residential real estate first mortgage		678,743		63		745		—		679,551
Residential real estate junior lien		149,847		—		632		—		150,479
Other revolving and installment		50,607		—		1		—		50,608
Total consumer		879,197		63		1,378		—		880,638
Total loans	$	2,408,709	$	22,032	$	13,253	$	—	$	2,443,994

	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

	Year ended December 31, 2022
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	8,925	$	1,168	$	(1,396)	$	461	$	9,158
Real estate construction		783		587		—		76		1,446
Commercial real estate		12,376		178		—		134		12,688
Total commercial		22,084		1,933		(1,396)		671		23,292
Consumer
Residential real estate first mortgage		6,532		(763)		—		—		5,769
Residential real estate junior lien		1,295		(288)		—		282		1,289
Other revolving and installment		481		30		(153)		170		528
Total consumer		8,308		(1,021)		(153)		452		7,586
Unallocated		1,180		(912)		—		—		268
Total	$	31,572	$	—	$	(1,549)	$	1,123	$	31,146

	Year ended December 31, 2021
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	10,205	$	(1,710)	$	(1,230)	$	1,660	$	8,925
Real estate construction		658		125		—		—		783
Commercial real estate		14,105		(2,015)		(536)		822		12,376
Total commercial		24,968		(3,600)		(1,766)		2,482		22,084
Consumer
Residential real estate first mortgage		5,774		758		—		—		6,532
Residential real estate junior lien		1,373		(201)		—		123		1,295
Other revolving and installment		753		(259)		(156)		143		481
Total consumer		7,900		298		(156)		266		8,308
Unallocated		1,378		(198)		—		—		1,180
Total	$	34,246	$	(3,500)	$	(1,922)	$	2,748	$	31,572

	Year ended December 31, 2020
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	12,270	$	(2,168)	$	(4,249)	$	4,352	$	10,205
Real estate construction		303		355		—		—		658
Commercial real estate		6,688		8,185		(865)		97		14,105
Total commercial		19,261		6,372		(5,114)		4,449		24,968
Consumer
Residential real estate first mortgage		1,448		4,321		—		5		5,774
Residential real estate junior lien		671		507		(12)		207		1,373
Other revolving and installment		352		514		(242)		129		753
Total consumer		2,471		5,342		(254)		341		7,900
Unallocated		2,192		(814)		—		—		1,378
Total	$	23,924	$	10,900	$	(5,368)	$	4,790	$	34,246

Schedule of loans distributed by portfolio segment and impairment methodology

	December 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	$	1,313	$	582,563	$	583,876	$	275	$	8,883	$	9,158
Real estate construction		262		97,548		97,810		97		1,349		1,446
Commercial real estate		1,472		880,198		881,670		582		12,106		12,688
Total commercial		3,047		1,560,309		1,563,356		954		22,338		23,292
Consumer
Residential real estate first mortgage		535		679,016		679,551		—		5,769		5,769
Residential real estate junior lien		184		150,295		150,479		—		1,289		1,289
Other revolving and installment		1		50,607		50,608		—		528		528
Total consumer		720		879,918		880,638		—		7,586		7,586
Unallocated		—		—		—		—		—		268
Total loans	$	3,767	$	2,440,227	$	2,443,994	$	954	$	29,924	$	31,146

	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

	December 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	$	675	$	711	$	275	$	445	$	464	$	278
Real estate construction		262		440		97		—		—		—
Commercial real estate		896		900		582		180		203		5
Residential real estate junior lien		—		—		—		—		—		—
Other revolving and installment		—		—		—		—		—		—
Total impaired loans with a valuation allowance		1,833		2,051		954		625		667		283
Impaired loans without a valuation allowance
Commercial and industrial		638		767		—		1,386		1,575		—
Real estate construction		—		—		—		—		—		—
Commercial real estate		576		660		—		629		684		—
Residential real estate first mortgage		535		573		—		21		24		—
Residential real estate junior lien		184		218		—		91		120		—
Other revolving and installment		1		1		—		—		—		—
Total impaired loans without a valuation allowance		1,934		2,219		—		2,127		2,403		—
Total impaired loans
Commercial and industrial		1,313		1,478		275		1,831		2,039		278
Real estate construction		262		440		97		—		—		—
Commercial real estate		1,472		1,560		582		809		887		5
Residential real estate first mortgage		535		573		—		21		24		—
Residential real estate junior lien		184		218		—		91		120		—
Other revolving and installment		1		1		—		—		—		—
Total impaired loans	$	3,767	$	4,270	$	954	$	2,752	$	3,070	$	283

The table below presents the average recorded investment in impaired loans and interest income for the three years ending December 31, 2022, 2021, and 2020:

	Year Ended December 31,
	2022				2021				2020
	Average				Average				Average
	Recorded		Interest		Recorded		Interest		Recorded		Interest
(dollars in thousands)	Investment		Income		Investment		Income		Investment		Income
Impaired loans with a valuation allowance
Commercial and industrial	$	722	$	13	$	517	$	13	$	765	$	14
Real estate construction		442		—		—		—		—		—
Commercial real estate		935		—		187		7		3,972		138
Residential real estate junior lien		—		—		—		—		19		—
Other revolving and installment		—		—		—		—		28		—
Total impaired loans with a valuation allowance		2,099		13		704		20		4,784		152
Impaired loans without a valuation allowance
Commercial and industrial		707		—		1,988		20		4,151		25
Real estate construction		—		—		—		—		—		—
Commercial real estate		618		—		672		—		1,614		—
Residential real estate first mortgage		575		—		23		—		461		—
Residential real estate junior lien		191		—		98		—		234		3
Other revolving and installment		1		—		1		—		—		—
Total impaired loans without a valuation allowance		2,092		—		2,782		20		6,460		28
Total impaired loans
Commercial and industrial		1,429		13		2,505		33		4,916		39
Real estate construction		442		—		—		—		—		—
Commercial real estate		1,553		—		859		7		5,586		138
Residential real estate first mortgage		575		—		23		—		461		—
Residential real estate junior lien		191		—		98		—		253		3
Other revolving and installment		1		—		1		—		28		—
Total impaired loans	$	4,191	$	13	$	3,486	$	40	$	11,244	$	180