Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2024

Loans and Allowance for Credit Losses

Schedule of total loans outstanding by portfolio segment

	March 31,		December 31,
(dollars in thousands)	2024		2023
Commercial
Commercial and industrial	$	611,695	$	598,321
Real estate construction		125,966		124,034
Commercial real estate		1,152,948		1,126,912
Total commercial		1,890,609		1,849,267
Consumer
Residential real estate first mortgage		722,151		726,879
Residential real estate junior lien		156,882		154,134
Other revolving and installment		29,833		29,303
Total consumer		908,866		910,316
Total loans	$	2,799,475	$	2,759,583

Summary of changes in allowances

	Three months ended March 31, 2024
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Credit Losses(1)		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	9,894	$	122	$	(164)	$	123	$	9,975
Real estate construction		6,111		(189)		—		—		5,922
Commercial real estate		11,897		834		(29)		11		12,713
Total commercial		27,902		767		(193)		134		28,610
Consumer
Residential real estate first mortgage		6,578		63		—		—		6,641
Residential real estate junior lien		1,151		(3)		—		—		1,148
Other revolving and installment		212		(28)		(12)		13		185
Total consumer		7,941		32		(12)		13		7,974
Total	$	35,843	$	799	$	(205)	$	147	$	36,584

(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 ($793) thousand related to off-balance sheet credit exposure and $(6) thousand related to investment securities held-to-maturity.

	Three months ended March 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)	$	(395)	$	(175)	$	56	$	8,012
Real estate construction		1,437		2,549		439		—		—		4,425
Commercial real estate		12,761		(131)		35		—		11		12,676
Total commercial		23,431		1,711		79		(175)		67		25,113
Consumer
Residential real estate first mortgage		5,858		2,269		187		—		2		8,316
Residential real estate junior lien		1,317		(27)		121		(77)		6		1,340
Other revolving and installment		540		(96)		(118)		(5)		12		333
Total consumer		7,715		2,146		190		(82)		20		9,989
Unallocated		—		—		—		—		—		—
Total	$	31,146	$	3,857	$	269	$	(257)	$	87	$	35,102

(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 $230 thousand related to off-balance sheet credit exposure and $51 thousand related to investment securities held-to-maturity.

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 March 31, 2024	2024		2023		2022		2021		2020		Prior		Cost Basis		Total
Commercial and industrial
Pass	$	41,962	$	183,564	$	82,980	$	56,800	$	60,343	$	48,218	$	95,175	$	569,042
Special mention		—		553		—		7,810		—		14		1,878		10,255
Substandard		—		446		4,960		1,543		5,487		2,976		16,986		32,398
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	41,962	$	184,563	$	87,940	$	66,153	$	65,830	$	51,208	$	114,039	$	611,695
Gross charge-offs for the period ended	$	—	$	—	$	—	$	—	$	—	$	164	$	—	$	164
Real estate construction
Pass	$	1,851	$	26,751	$	70,126	$	5,154	$	100	$	929	$	—	$	104,911
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		21,055		—		—		—		—		21,055
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	1,851	$	26,751	$	91,181	$	5,154	$	100	$	929	$	—	$	125,966
Gross charge-offs for the period ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate
Pass	$	29,459	$	272,847	$	262,017	$	140,221	$	139,105	$	267,003	$	7,854	$	1,118,506
Special mention		—		—		—		—		12,957		1,972		—		14,929
Substandard		—		6,020		2,261		5,187		—		5,397		648		19,513
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	29,459	$	278,867	$	264,278	$	145,408	$	152,062	$	274,372	$	8,502	$	1,152,948
Gross charge-offs for the period ended	$	—	$	—	$	—	$	—	$	—	$	29	$	—	$	29
Residential real estate first mortgage
Performing	$	5,538	$	71,933	$	199,111	$	216,774	$	106,562	$	116,181	$	751	$	716,850
Nonperforming		—		—		4,361		7		12		921		—		5,301
Subtotal	$	5,538	$	71,933	$	203,472	$	216,781	$	106,574	$	117,102	$	751	$	722,151
Gross charge-offs for the period ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate junior lien
Performing	$	2,059	$	17,642	$	15,169	$	5,872	$	4,528	$	6,394	$	102,630	$	154,294
Nonperforming		244		—		—		111		—		317		1,916		2,588
Subtotal	$	2,303	$	17,642	$	15,169	$	5,983	$	4,528	$	6,711	$	104,546	$	156,882
Gross charge-offs for the period ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other revolving and installment
Performing	$	880	$	4,633	$	5,786	$	828	$	3,449	$	1,747	$	12,509	$	29,832
Nonperforming		—		—		—		—		—		1		—		1
Subtotal	$	880	$	4,633	$	5,786	$	828	$	3,449	$	1,748	$	12,509	$	29,833
Gross charge-offs for the period ended	$	—	$	—	$	3	$	—	$	—	$	9	$	—	$	12
Total loans	$	81,993	$	584,389	$	667,826	$	440,307	$	332,543	$	452,070	$	240,347	$	2,799,475
Gross charge-offs for the period ended	$	—	$	—	$	3	$	—	$	—	$	202	$	—	$	205

													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 period 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 period 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 period ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate first mortgage
Performing	$	72,180	$	207,177	$	218,719	$	108,100	$	33,102	$	87,212	$	284	$	726,774
Nonperforming		—		—		—		—		—		105		—		105
Subtotal	$	72,180	$	207,177	$	218,719	$	108,100	$	33,102	$	87,317	$	284	$	726,879
Gross charge-offs for the period 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
Nonperforming		—		—		—		—		—		—		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 period ended	$	—	$	—	$	—	$	—	$	—	$	77	$	—	$	77
Other revolving and installment
Performing	$	5,320	$	6,395	$	980	$	4,489	$	1,554	$	952	$	9,613	$	29,303
Nonperforming		—		—		—		—		—		—		—		—
Subtotal	$	5,320	$	6,395	$	980	$	4,489	$	1,554	$	952	$	9,613	$	29,303
Gross charge-offs for the period 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 period ended	$	43	$	2	$	58	$	42	$	253	$	215	$	—	$	613

Schedule of past due aging analysis of the loan portfolio

	March 31, 2024
							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	$	605,573	$	593	$	43	$	—	$	5,486	$	611,695
Real estate construction		125,966		—		—		—		—		125,966
Commercial real estate		1,151,672		474		—		—		802		1,152,948
Total commercial		1,883,211		1,067		43		—		6,288		1,890,609
Consumer
Residential real estate first mortgage		717,046		4,478		—		—		627		722,151
Residential real estate junior lien		155,919		509		25		—		429		156,882
Other revolving and installment		29,735		64		33		—		1		29,833
Total consumer		902,700		5,051		58		—		1,057		908,866
Total loans	$	2,785,911	$	6,118	$	101	$	—	$	7,345	$	2,799,475

	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

Schedule of amortized cost basis on nonaccrual status loans

	As of March 31, 2024
					90 Days
	Nonaccrual				or More
	with no Allowance				Past Due
(dollars in thousands)	for Credit Losses		Nonaccrual		and Accruing
Commercial
Commercial and industrial	$	69	$	5,486	$	—
Real estate construction		—		—		—
Commercial real estate		95		802		—
Total commercial		164		6,288		—
Consumer
Residential real estate first mortgage		621		627		—
Residential real estate junior lien		429		429		—
Other revolving and installment		—		1		—
Total consumer		1,050		1,057		—
Total loans	$	1,214	$	7,345	$	—

	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

Schedule of financing receivables collateral dependent loans

	As of March 31, 2024
	Primary Type of Collateral
									Allowance for
(dollars in thousands)	Real estate		Equipment		Other		Total		Credit Losses
Commercial
Commercial and industrial	$	5,070	$	—	$	—	$	5,070	$	2,280
Commercial real estate		515		—		40		555		366
Total commercial		5,585		—		40		5,625		2,646
Consumer
Residential real estate first mortgage		627		—		—		627		3
Residential real estate junior lien		429		—		1		430		—
Total consumer		1,056		—		1		1,057		3
Total loans	$	6,641	$	—	$	41	$	6,682	$	2,649

	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
Real estate construction		—		—		—		—		—
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
Other revolving and installment		—		—		—		—		—
Total consumer		772		22		93		887		9
Total loans	$	7,591	$	22	$	189	$	7,802	$	2,994