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Loans and Allowance for Credit Losses (Tables)
12 Months Ended
Dec. 31, 2023
Loans and Allowance for Credit Losses  
Schedule of total loans outstanding by portfolio segment

    

December 31, 

    

December 31, 

(dollars in thousands)

    

2023

    

2022

Commercial

Commercial and industrial

$

598,321

$

583,876

Real estate construction

 

124,034

 

97,810

Commercial real estate

 

1,126,912

 

881,670

Total commercial

 

1,849,267

 

1,563,356

Consumer

 

  

 

  

Residential real estate first mortgage

 

726,879

 

679,551

Residential real estate junior lien

 

154,134

 

150,479

Other revolving and installment

 

29,303

 

50,608

Total consumer

 

910,316

 

880,638

Total loans

$

2,759,583

$

2,443,994

Summary of changes in allowances

Year ended December 31, 2023

Beginning

Adoption

Provision for

Loan

Loan

Ending

(dollars in thousands)

    

Balance

    

of ASC 326

    

Credit Losses(1)

    

Charge-offs

    

Recoveries

    

Balance

Commercial

Commercial and industrial

$

9,233

$

(707)

$

645

$

(436)

$

1,159

$

9,894

Real estate construction

1,437

2,549

2,125

6,111

Commercial real estate

12,761

(131)

(778)

45

11,897

Total commercial

23,431

1,711

1,992

(436)

1,204

27,902

Consumer

Residential real estate first mortgage

5,857

2,269

(1,829)

(49)

330

6,578

Residential real estate junior lien

1,318

(27)

(115)

(77)

52

1,151

Other revolving and installment

540

(96)

(273)

(51)

92

212

Total consumer

7,715

2,146

(2,217)

(177)

474

7,941

Total

$

31,146

$

3,857

$

(225)

$

(613)

$

1,678

$

35,843

(1)The difference in the credit loss expense reported herein compared to the consolidated statements of income is associated with the credit loss expense of $2.2 million related to off-balance sheet credit exposure and $40 thousand related to investment securities held-to-maturity.

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

$

9,218

$

950

$

(1,396)

$

461

$

9,233

Real estate construction

 

810

 

551

 

 

76

 

1,437

Commercial real estate

 

12,778

 

(151)

 

 

134

 

12,761

Total commercial

 

22,806

 

1,350

 

(1,396)

 

671

 

23,431

Consumer

 

 

  

 

  

 

  

 

  

Residential real estate first mortgage

 

6,874

 

(1,017)

 

 

 

5,857

Residential real estate junior lien

 

1,380

 

(344)

 

282

 

1,318

Other revolving and installment

 

512

 

11

 

(153)

 

170

 

540

Total consumer

 

8,766

 

(1,350)

 

(153)

 

452

 

7,715

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

$

10,547

$

(1,759)

$

(1,230)

$

1,660

$

9,218

Real estate construction

 

690

 

120

 

 

 

810

Commercial real estate

 

14,574

 

(2,082)

 

(536)

 

822

 

12,778

Total commercial

 

25,811

 

(3,721)

 

(1,766)

 

2,482

 

22,806

Consumer

 

  

 

  

 

  

 

  

 

  

Residential real estate first mortgage

 

6,174

 

700

 

 

 

6,874

Residential real estate junior lien

 

1,472

 

(215)

 

 

123

 

1,380

Other revolving and installment

 

789

 

(264)

 

(156)

 

143

 

512

Total consumer

 

8,435

 

221

 

(156)

 

266

 

8,766

Total

$

34,246

$

(3,500)

$

(1,922)

$

2,748

$

31,572

Schedule of loans outstanding, by portfolio segment and risk category

Revolving

(dollars in thousands)

    

Term Loans Amortized Cost Basis by Origination Year

Loans Amortized

As of December 31, 2023

2023

2022

2021

2020

2019

Prior

Cost Basis

Total

Commercial and industrial

    

    

    

    

    

    

    

Pass

$

197,533

$

89,090

$

67,691

$

64,272

$

34,603

$

15,053

$

100,239

$

568,481

Special mention

Substandard

464

4,844

236

6,328

94

2,513

15,361

29,840

Doubtful

Subtotal

$

197,997

$

93,934

$

67,927

$

70,600

$

34,697

$

17,566

$

115,600

$

598,321

Gross charge-offs for the year ended

$

39

$

$

49

$

11

$

247

$

90

$

$

436

Real estate construction

Pass

$

29,902

$

57,944

$

14,326

$

122

$

$

952

$

121

$

103,367

Special mention

Substandard

 

20,667

 

 

 

 

 

20,667

Doubtful

Subtotal

$

29,902

$

78,611

$

14,326

$

122

$

$

952

$

121

$

124,034

Gross charge-offs for the year ended

$

$

$

$

$

$

$

$

Commercial real estate

Pass

$

272,261

$

265,549

$

142,027

$

153,796

$

116,861

$

159,454

$

7,794

$

1,117,742

Special mention

262

262

Substandard

587

2,872

3,690

1,759

 

8,908

Doubtful

Subtotal

$

272,261

$

266,136

$

144,899

$

153,796

$

120,551

$

161,475

$

7,794

$

1,126,912

Gross charge-offs for the year ended

$

$

$

$

$

$

$

$

Residential real estate first mortgage

Performing

$

72,180

$

207,177

$

218,719

$

108,100

$

33,102

$

87,212

$

284

$

726,774

Non-performing

105

105

Subtotal

$

72,180

$

207,177

$

218,719

$

108,100

$

33,102

$

87,317

$

284

$

726,879

Gross charge-offs for the year ended

$

$

$

9

$

$

$

40

$

$

49

Residential real estate junior lien

Performing

$

18,408

$

15,655

$

5,946

$

4,857

$

1,769

$

5,280

$

100,438

$

152,353

Non-performing

1,781

1,781

Subtotal

$

18,408

$

15,655

$

5,946

$

4,857

$

1,769

$

5,280

$

102,219

$

154,134

Gross charge-offs for the year ended

$

$

$

$

$

$

77

$

$

77

Other revolving and installment

Performing

$

5,320

$

6,395

$

980

$

4,489

$

1,554

$

952

$

9,613

$

29,303

Non-performing

Subtotal

$

5,320

$

6,395

$

980

$

4,489

$

1,554

$

952

$

9,613

$

29,303

Gross charge-offs for the year ended

$

4

$

2

$

$

31

$

6

$

8

$

$

51

Total loans

$

596,068

$

667,908

$

452,797

$

341,964

$

191,673

$

273,542

$

235,631

$

2,759,583

Gross charge-offs for the year ended

$

43

$

2

$

58

$

42

$

253

$

215

$

$

613

The following table sets forth the risk category of loans by class and credit quality indicator used on the most recent analysis performed as of December 31, 2022:

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

Schedule of past due aging analysis of the loan portfolio

December 31, 2023

90 Days

Accruing

30 - 59 Days

60 - 89 Days

or More

Total

(dollars in thousands)

    

Current

    

Past Due

    

Past Due

    

Past Due

    

Nonaccrual

    

Loans

Commercial

 

  

 

  

 

  

 

  

 

  

 

  

Commercial and industrial

$

590,663

$

924

$

$

139

$

6,595

$

598,321

Real estate construction

 

124,034

 

 

 

 

 

124,034

Commercial real estate

 

1,125,669

 

128

 

 

 

1,115

 

1,126,912

Total commercial

 

1,840,366

 

1,052

 

 

139

 

7,710

 

1,849,267

Consumer

 

  

 

  

 

  

 

  

 

  

 

  

Residential real estate first mortgage

 

724,786

 

901

 

554

 

638

 

726,879

Residential real estate junior lien

 

153,220

 

666

 

 

 

248

 

154,134

Other revolving and installment

 

29,086

 

170

 

47

 

 

 

29,303

Total consumer

 

907,092

 

1,737

 

601

 

 

886

 

910,316

Total loans

$

2,747,458

$

2,789

$

601

$

139

$

8,596

$

2,759,583

December 31, 2022

90 Days

Accruing

30 - 59 Days

60 - 89 Days

or More

Total

(dollars in thousands)

    

Current

    

Past Due

    

Past Due

    

Past Due

    

Nonaccrual

    

Loans

Commercial

 

  

 

  

 

  

 

  

 

  

 

  

Commercial and industrial

$

580,288

$

2,332

$

94

$

$

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

 

2,700

 

94

 

 

3,074

 

1,563,356

Consumer

 

  

 

  

 

  

 

  

 

  

 

  

Residential real estate first mortgage

 

677,471

 

1,234

 

311

 

 

535

 

679,551

Residential real estate junior lien

 

149,918

 

377

 

 

 

184

 

150,479

Other revolving and installment

 

50,360

 

237

 

10

 

 

1

 

50,608

Total consumer

 

877,749

 

1,848

 

321

 

 

720

 

880,638

Total loans

$

2,435,237

$

4,548

$

415

$

$

3,794

$

2,443,994

Schedule of amortized cost basis on nonaccrual status loans

As of December 31, 2023

90 Days

Nonaccrual

or More

with no Allowance

Past Due

(dollars in thousands)

for Credit Losses

Nonaccrual

and Accruing

Commercial

Commercial and industrial

$

79

$

6,595

$

139

Real estate construction

Commercial real estate

95

1,115

Total commercial

174

7,710

139

Consumer

Residential real estate first mortgage

632

638

Residential real estate junior lien

185

248

Other revolving and installment

Total consumer

817

886

Total loans

$

991

$

8,596

$

139

December 31, 2022

90 Days

Nonaccrual

or More

with no Allowance

Past Due

(dollars in thousands)

for Credit Losses

Nonaccrual

and Accruing

Commercial

Commercial and industrial

$

638

$

1,162

$

Real estate construction

440

Commercial real estate

576

1,472

Total commercial

1,214

3,074

Consumer

Residential real estate first mortgage

535

535

Residential real estate junior lien

184

184

Other revolving and installment

1

1

Total consumer

720

720

Total loans

$

1,934

$

3,794

$

Schedule of financing receivables collateral dependent loans

As of December 31, 2023

Primary Type of Collateral

Allowance for

(dollars in thousands)

Real estate

Equipment

Other

Total

Credit Losses

Commercial

Commercial and industrial

$

6,124

$

$

$

6,124

$

2,384

Commercial real estate

695

96

791

601

Total commercial

6,819

96

6,915

2,985

Consumer

Residential real estate first mortgage

638

638

3

Residential real estate junior lien

134

22

93

249

6

Total consumer

772

22

93

887

9

Total loans

$

7,591

$

22

$

189

$

7,802

$

2,994

Schedule of recorded investment and related allowance for loan losses on loans by portfolio segment 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

$

8,958

$

9,233

Real estate construction

 

262

 

97,548

 

97,810

97

1,340

1,437

Commercial real estate

 

1,472

 

880,198

 

881,670

582

12,179

12,761

Total commercial

 

3,047

 

1,560,309

 

1,563,356

954

22,477

23,431

Consumer

 

  

 

  

 

  

Residential real estate first mortgage

 

535

 

679,016

 

679,551

5,857

5,857

Residential real estate junior lien

 

184

150,295

 

150,479

1,318

1,318

Other revolving and installment

 

1

 

50,607

 

50,608

540

540

Total consumer

 

720

 

879,918

 

880,638

7,715

7,715

Total loans

$

3,767

$

2,440,227

$

2,443,994

$

954

$

30,192

$

31,146

Schedule of impaired loans

December 31, 2022

Recorded

Unpaid

Related

(dollars in thousands)

    

Investment

    

Principal

    

Allowance

Impaired loans with a valuation allowance

Commercial and industrial

$

675

$

711

$

275

Real estate construction

262

440

97

Commercial real estate

 

896

 

900

 

582

Residential real estate first mortgage

Total impaired loans with a valuation allowance

1,833

2,051

954

Impaired loans without a valuation allowance

 

  

 

  

 

  

Commercial and industrial

638

767

Real estate construction

Commercial real estate

576

 

660

 

Residential real estate first mortgage

535

 

573

 

Residential real estate junior lien

184

 

218

 

Other revolving and installment

1

 

1

 

Total impaired loans without a valuation allowance

1,934

2,219

Total impaired loans

  

 

  

 

  

Commercial and industrial

1,313

1,478

275

Real estate construction

262

440

97

Commercial real estate

 

1,472

 

1,560

 

582

Residential real estate first mortgage

535

573

Residential real estate junior lien

 

184

 

218

 

Other revolving and installment

 

1

 

1

 

Total impaired loans

$

3,767

$

4,270

$

954

Year Ended December 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

$

722

$

13

$

517

$

13

Real estate construction

442

Commercial real estate

 

935

 

187

 

7

Residential real estate first mortgage

Residential real estate junior lien

 

 

 

Other revolving and installment

 

 

 

Total impaired loans with a valuation allowance

2,099

13

704

20

Impaired loans without a valuation allowance

  

 

  

 

  

 

  

Commercial and industrial

707

1,988

20

Real estate construction

Commercial real estate

 

618

 

672

 

Residential real estate first mortgage

 

575

 

23

 

Residential real estate junior lien

 

191

98

Other revolving and installment

 

1

 

1

 

Total impaired loans without a valuation allowance

2,092

2,782

20

Total impaired loans

 

  

 

  

  

 

  

Commercial and industrial

1,429

13

2,505

33

Real estate construction

442

Commercial real estate

 

1,553

 

859

 

7

Residential real estate first mortgage

 

575

 

23

 

Residential real estate junior lien

 

191

 

98

 

Other revolving and installment

 

1

 

1

 

Total impaired loans

$

4,191

$

13

$

3,486

$

40