Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2020

Receivables [Abstract]

Schedule of Financing Receivables

(Dollars in thousands)	June 30, 2020		December 31, 2019
Construction	$	110,657	$	99,829
Residential real estate		430,436		442,506
Commercial real estate		626,339		586,562
Commercial		214,616		102,020
Consumer		25,201		17,737
Total loans		1,407,249		1,248,654
Allowance for credit losses		(11,090)		(10,507)
Total loans, net	$	1,396,159	$	1,238,147

Allowance for Credit Losses on Financing Receivables

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
June 30, 2020
Loans individually evaluated for impairment	$	335	$	7,775	$	10,884	$	571	$	—	$	19,565
Loans collectively evaluated for impairment		110,322		422,661		615,455		214,045		25,201		1,387,684
Total loans	$	110,657	$	430,436	$	626,339	$	214,616	$	25,201	$	1,407,249
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	$	—	$	265	$	81	$	—	$	—	$	346
Loans collectively evaluated for impairment		1,497		2,374		4,016		2,355		502		10,744
Total allowance	$	1,497	$	2,639	$	4,097	$	2,355	$	502	$	11,090

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
December 31, 2019
Loans individually evaluated for impairment	$	41	$	7,072	$	12,006	$	298	$	—	$	19,417
Loans collectively evaluated for impairment		99,788		435,434		574,556		101,722		17,737		1,229,237
Total loans	$	99,829	$	442,506	$	586,562	$	102,020	$	17,737	$	1,248,654
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	$	—	$	395	$	580	$	—	$	—	$	975
Loans collectively evaluated for impairment		1,576		2,106		3,452		1,929		469		9,532
Total allowance	$	1,576	$	2,501	$	4,032	$	1,929	$	469	$	10,507

Impaired Financing Receivables

			Recorded		Recorded				June 30, 2020
	Unpaid		investment		investment				Quarter-to-date		Year-to-date		Interest
	principal		with no		with an		Related		average recorded		average recorded		recorded
(Dollars in thousands)	balance		allowance		allowance		allowance		investment		investment		investment
June 30, 2020
Impaired nonaccrual loans:
Construction	$	297	$	297	$	—	$	—	$	297	$	198	$	—
Residential real estate		4,250		2,474		1,342		75		3,555		3,213		—
Commercial real estate		8,016		6,921		67		67		6,853		7,103		—
Commercial		679		548		—		—		551		466		—
Consumer		—		—		—		—		—		—		—
Total	$	13,242	$	10,240	$	1,409	$	142	$	11,256	$	10,980	$	—
Impaired accruing TDRs:
Construction	$	38	$	38	$	—	$	—	$	38	$	38	$	1
Residential real estate		3,905		1,199		2,706		190		3,912		3,967		79
Commercial real estate		3,369		2,712		657		14		3,373		3,390		47
Commercial		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—
Total	$	7,312	$	3,949	$	3,363	$	204	$	7,323	$	7,395	$	127
Other impaired accruing loans:
Construction	$	—	$	—	$	—	$	—	$	—	$	49	$	—
Residential real estate		54		54		—		—		179		394		1
Commercial real estate		527		527		—		—		1,053		867		3
Commercial		23		23		—		—		6		5		—
Consumer		—		—		—		—		16		9		—
Total	$	604	$	604	$	—	$	—	$	1,254	$	1,324	$	4
Total impaired loans:
Construction	$	335	$	335	$	—	$	—	$	335	$	285	$	1
Residential real estate		8,209		3,727		4,048		265		7,646		7,574		80
Commercial real estate		11,912		10,160		724		81		11,279		11,360		50
Commercial		702		571		—		—		557		471		—
Consumer		—		—		—		—		16		9		—
Total	$	21,158	$	14,793	$	4,772	$	346	$	19,833	$	19,699	$	131

			Recorded		Recorded				June 30, 2019
	Unpaid		investment		investment				Quarter-to-date		Year-to-date		Interest
	principal		with no		with an		Related		average recorded		average recorded		income
(Dollars in thousands)	balance		allowance		allowance		allowance		investment		investment		recognized
December 31, 2019
Impaired nonaccrual loans:
Construction	$	—	$	—	$	—	$	—	$	1,515	$	2,153	$	—
Residential real estate		2,660		678		1,797		215		2,730		3,034		—
Commercial real estate		8,242		5,680		2,137		561		9,613		9,466		—
Commercial		421		298		—		—		314		319		—
Consumer		—		—		—		—		—		—		—
Total	$	11,323	$	6,656	$	3,934	$	776	$	14,172	$	14,972	$	—
Impaired accruing TDRs:
Construction	$	41	$	41	$	—	$	—	$	47	$	48	$	8
Residential real estate		4,041		2,583		1,458		180		4,219		4,263		81
Commercial real estate		3,419		2,748		671		19		3,516		3,533		66
Commercial		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—
Total	$	7,501	$	5,372	$	2,129	$	199	$	7,782	$	7,844	$	155
Other impaired accruing loans:
Construction	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate		556		556		—		—		88		95		—
Commercial real estate		770		770		—		—		531		266		2
Commercial		—		—		—		—		11		10		—
Consumer		—		—		—		—		7		5		—
Total	$	1,326	$	1,326	$	—	$	—	$	637	$	376	$	2
Total impaired loans:
Construction	$	41	$	41	$	—	$	—	$	1,562	$	2,201	$	8
Residential real estate		7,257		3,817		3,255		395		7,037		7,392		81
Commercial real estate		12,431		9,198		2,808		580		13,660		13,265		68
Commercial		421		298		—		—		325		329		—
Consumer		—		—		—		—		7		5		—
Total	$	20,150	$	13,354	$	6,063	$	975	$	22,591	$	23,192	$	157

Troubled Debt Restructurings on Financing Receivables

The following tables provide a roll-forward for TDRs as of June 30, 2020 and June 30, 2019.

	1/1/2020												6/30/2020
	TDR		New		Disbursements		Charge-		Reclassifications/				TDR		Related
(Dollars in thousands)	Balance		TDRs		(Payments)		offs		Transfer In/(Out)		Payoffs		Balance		Allowance
For six months ended
June 30, 2020
Accruing TDRs
Construction	$	41	$	—	$	(3)	$	—	$	—	$	—	$	38	$	—
Residential real estate		4,041		—		(53)		—		—		(83)		3,905		190
Commercial real estate		3,419		—		(50)		—		—		—		3,369		14
Commercial		—		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—		—
Total	$	7,501	$	—	$	(106)	$	—	$	—	$	(83)	$	7,312	$	204
Nonaccrual TDRs
Construction	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate		1,393		—		(51)		—		—		—		1,342		75
Commercial real estate		—		1,506		(373)		—		—		—		1,133		—
Commercial		299		—		(19)		—		—		—		280		—
Consumer		—		—		—		—		—		—		—		—
Total	$	1,692	$	1,506	$	(443)	$	—	$	—	$	—	$	2,755	$	75
Total	$	9,193	$	1,506	$	(549)	$	—	$	—	$	(83)	$	10,067	$	279

	1/1/2019												6/30/2019
	TDR		New		Disbursements		Charge-		Reclassifications/				TDR		Related
(Dollars in thousands)	Balance		TDRs		(Payments)		offs		Transfer In/(Out)		Payoffs		Balance		Allowance
For six months ended
June 30, 2019
Accruing TDRs
Construction	$	51	$	—	$	(6)	$	—	$	—	$	—	$	45	$	—
Residential real estate		4,454		—		(45)		—		—		(197)		4,212		230
Commercial real estate		4,158		—		(647)		—		—		—		3,511		25
Commercial		—		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—		—
Total	$	8,663	$	—	$	(698)	$	—	$	—	$	(197)	$	7,768	$	255
Nonaccrual TDRs
Construction	$	2,798	$	—	$	(1,346)	$	(3)	$	—	$	—	$	1,449	$	152
Residential real estate		—		—		—		—		—		—		—		—
Commercial real estate		—		—		—		—		—		—		—		—
Commercial		320		—		(9)		—		—		—		311		7
Consumer		—		—		—		—		—		—		—		—
Total	$	3,118	$	—	$	(1,355)	$	(3)	$	—	$	—	$	1,760	$	159
Total	$	11,781	$	—	$	(2,053)	$	(3)	$	—	$	(197)	$	9,528	$	414

There were no loans modified and considered TDRs during the three months ended June 30, 2020 and 2019. The following tables provide information on loans that were modified and considered TDRs during the six months ended June 30, 2020 and June 30, 2019.

		Premodification		Postmodification
		outstanding		outstanding
	Number of	recorded		recorded		Related
(Dollars in thousands)	contracts	investment		investment		allowance
TDRs:
For six months ended
June 30, 2020
Construction	—	$	—	$	—	$	—
Residential real estate	—		—		—		—
Commercial real estate	1		1,535		1,162		—
Commercial	—		—		—		—
Consumer	—		—		—		—
Total	1	$	1,535	$	1,162	$	—
For six months ended
June 30, 2019
Construction	—	$	—	$	—	$	—
Residential real estate	—		—		—		—
Commercial real estate	—		—		—		—
Commercial	—		—		—		—
Consumer	—		—		—		—
Total	—	$	—	$	—	$	—

Financing Receivable Credit Quality Indicators

					Special
(Dollars in thousands)	Pass/Performing		Pass/Watch		Mention		Substandard		Doubtful		Total
June 30, 2020
Construction	$	91,746	$	16,551	$	2,063	$	297	$	—	$	110,657
Residential real estate		392,692		29,518		3,845		4,381		—		430,436
Commercial real estate		488,095		120,113		6,303		11,828		—		626,339
Commercial		184,908		26,023		3,105		580		—		214,616
Consumer		24,864		332		—		5		—		25,201
Total	$	1,182,305	$	192,537	$	15,316	$	17,091	$	—	$	1,407,249

					Special
(Dollars in thousands)	Pass/Performing		Pass/Watch		Mention		Substandard		Doubtful		Total
December 31, 2019
Construction	$	84,357	$	13,068	$	2,404	$	—	$	—	$	99,829
Residential real estate		404,500		29,223		5,549		3,234		—		442,506
Commercial real estate		455,388		115,190		4,822		11,162		—		586,562
Commercial		80,816		20,130		746		328		—		102,020
Consumer		17,347		383		2		5		—		17,737
Total	$	1,042,408	$	177,994	$	13,523	$	14,729	$	—	$	1,248,654

Past Due Financing Receivables

	Accruing
				30‑59 days			60‑89 days			Greater than			Total
(Dollars in thousands)	Current			past due			past due			90 days			past due			Nonaccrual			Total
June 30, 2020
Construction	$	110,259		$	101		$	—		$	—		$	101		$	297		$	110,657
Residential real estate		425,440			663			463			54			1,180			3,816			430,436
Commercial real estate		618,524			—			300			527			827			6,988			626,339
Commercial		213,919			121			28			—			149			548			214,616
Consumer		25,134			15			29			23			67			—			25,201
Total	$	1,393,276		$	900		$	820		$	604		$	2,324		$	11,649		$	1,407,249
Percent of total loans		99.0	%		0.1	%		0.1	%		—	%		0.2	%		0.8	%		100.0	%

	Accruing
				30‑59 days			60‑89 days			Greater than			Total
(Dollars in thousands)	Current			past due			past due			90 days			past due			Nonaccrual			Total
December 31, 2019
Construction	$	99,234		$	595		$	—		$	—		$	595		$	—		$	99,829
Residential real estate		435,671			3,021			783			556			4,360			2,475			442,506
Commercial real estate		577,015			743			217			770			1,730			7,817			586,562
Commercial		101,476			246			—			—			246			298			102,020
Consumer		17,680			57			—			—			57			—			17,737
Total	$	1,231,076		$	4,662		$	1,000		$	1,326		$	6,988		$	10,590		$	1,248,654
Percent of total loans		98.6	%		0.4	%		0.1	%		0.1	%		0.6	%		0.8	%		100.0	%

Consolidated Allowance for Credit Losses on Financing Receivables

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
For three months ended
June 30, 2020
Allowance for credit losses:
Beginning Balance	$	1,128	$	2,482	$	3,965	$	2,263	$	540	$	10,378
Charge-offs		—		—		(331)		(37)		—		(368)
Recoveries		5		4		—		61		10		80
Net charge-offs		5		4		(331)		24		10		(288)
Provision		364		153		463		68		(48)		1,000
Ending Balance	$	1,497	$	2,639	$	4,097	$	2,355	$	502	$	11,090

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
For three months ended
June 30, 2019
Allowance for credit losses:
Beginning Balance	$	2,657	$	2,433	$	3,057	$	2,009	$	262	$	10,418
Charge-offs		(3)		(300)		—		(81)		(23)		(407)
Recoveries		4		3		8		77		2		94
Net charge-offs		1		(297)		8		(4)		(21)		(313)
Provision		(215)		19		302		52		42		200
Ending Balance	$	2,443	$	2,155	$	3,367	$	2,057	$	283	$	10,305

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
For six months ended
June 30, 2020
Allowance for credit losses:
Beginning Balance	$	1,576	$	2,501	$	4,032	$	1,929	$	469	$	10,507
Charge-offs		—		(191)		(601)		(119)		(7)		(918)
Recoveries		8		7		—		124		12		151
Net charge-offs		8		(184)		(601)		5		5		(767)
Provision		(87)		322		666		421		28		1,350
Ending Balance	$	1,497	$	2,639	$	4,097	$	2,355	$	502	$	11,090

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
For six months ended
June 30, 2019
Allowance for credit losses:
Beginning Balance	$	2,662	$	2,353	$	3,077	$	1,949	$	302	$	10,343
Charge-offs		(3)		(423)		—		(162)		(29)		(617)
Recoveries		7		11		107		152		2		279
Net charge-offs		4		(412)		107		(10)		(27)		(338)
Provision		(223)		214		183		118		8		300
Ending Balance	$	2,443	$	2,155	$	3,367	$	2,057	$	283	$	10,305