Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Schedule of Financing Receivables

(Dollars in thousands)	2020		2019
Construction	$	106,760	$	99,829
Residential real estate		443,542		442,506
Commercial real estate		661,232		586,562
Commercial		211,256		102,020
Consumer		31,466		17,737
Total loans		1,454,256		1,248,654
Allowance for credit losses		(13,888)		(10,507)
Total loans, net	$	1,440,368	$	1,238,147

Allowance for Credit Losses on Financing Receivables

The following tables include impairment information relating to loans and the allowance for credit losses as of December 31, 2020 and 2019.

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
2020
Loans individually evaluated for impairment	$	331	$	5,722	$	6,917	$	258	$	28	$	13,256
Loans collectively evaluated for impairment		106,429		437,820		654,315		210,998		31,438		1,441,000
Total loans	$	106,760	$	443,542	$	661,232	$	211,256	$	31,466	$	1,454,256
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	$	—	$	135	$	78	$	—	$	—	$	213
Loans collectively evaluated for impairment		2,022		3,564		5,348		2,089		652		13,675
Total allowance	$	2,022	$	3,699	$	5,426	$	2,089	$	652	$	13,888

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
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

The following tables provide information on impaired loans and any related allowance by loan class as of December 31, 2020 and 2019. The difference between the unpaid principal balance and the recorded investment is the amount of partial charge-offs that have been taken and interest paid on nonaccrual loans that has been applied to principal.

			Recorded		Recorded
	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
2020
Impaired nonaccrual loans:
Construction	$	297	$	297	$	—	$	—	$	297	$	247	$	—
Residential real estate		1,665		1,585		—		—		1,861		2,648		—
Commercial real estate		4,288		3,220		67		67		3,971		5,669		—
Commercial		401		258		—		—		272		390		—
Consumer		28		28		—		—		28		9		—
Total	$	6,679	$	5,388	$	67	$	67	$	6,429	$	8,963	$	—
Impaired accruing TDRs:
Construction	$	34	$	34	$	—	$	—	$	34	$	37	$	3
Residential real estate		3,845		2,617		1,228		135		3,857		3,920		160
Commercial real estate		3,118		2,479		639		11		3,261		3,349		104
Commercial		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—
Total	$	6,997	$	5,130	$	1,867	$	146	$	7,152	$	7,306	$	267
Other impaired accruing loans:
Construction	$	—	$	—	$	—	$	—	$	—	$	25	$	—
Residential real estate		292		292		—		—		269		362		2
Commercial real estate		512		512		—		—		532		774		5
Commercial		—		—		—		—		—		13		—
Consumer		—		—		—		—		—		9		—
Total	$	804	$	804	$	—	$	—	$	801	$	1,183	$	7
Total impaired loans:
Construction	$	331	$	331	$	—	$	—	$	331	$	309	$	3
Residential real estate		5,802		4,494		1,228		135		5,987		6,930		162
Commercial real estate		7,918		6,211		706		78		7,764		9,792		109
Commercial		401		258		—		—		272		403		—
Consumer		28		28		—		—		28		18		—
Total	$	14,480	$	11,322	$	1,934	$	213	$	14,382	$	17,452	$	274

			Recorded		Recorded
	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
2019
Impaired nonaccrual loans:
Construction	$	—	$	—	$	—	$	—	$	—	$	1,076	$	—
Residential real estate		2,660		678		1,797		215		2,052		2,691		—
Commercial real estate		8,242		5,680		2,137		561		8,533		9,421		—
Commercial		421		298		—		—		301		313		—
Consumer		—		—		—		—		—		—		—
Total	$	11,323	$	6,656	$	3,934	$	776	$	10,886	$	13,501	$	—
Impaired accruing TDRs:
Construction	$	41	$	41	$	—	$	—	$	41	$	46	$	10
Residential real estate		4,041		2,583		1,458		180		4,052		4,157		171
Commercial real estate		3,419		2,748		671		19		3,438		3,496		125
Commercial		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—
Total	$	7,501	$	5,372	$	2,129	$	199	$	7,531	$	7,699	$	306
Other impaired accruing loans:
Construction	$	—	$	—	$	—	$	—	$	—	$	18	$	—
Residential real estate		556		556		—		—		786		337		5
Commercial real estate		770		770		—		—		297		336		4
Commercial		—		—		—		—		89		38		1
Consumer		—		—		—		—		—		3		—
Total	$	1,326	$	1,326	$	—	$	—	$	1,172	$	732	$	10
Total impaired loans:
Construction	$	41	$	41	$	—	$	—	$	41	$	1,140	$	10
Residential real estate		7,257		3,817		3,255		395		6,890		7,185		176
Commercial real estate		12,431		9,198		2,808		580		12,268		13,253		129
Commercial		421		298		—		—		390		351		1
Consumer		—		—		—		—		—		3		—
Total	$	20,150	$	13,354	$	6,063	$	975	$	19,589	$	21,932	$	316

Troubled Debt Restructurings on Financing Receivables

The following tables provide a roll-forward for troubled debt restructurings as of and for the years ended December 31, 2020 and December 31, 2019.

	1/1/2020												12/31/2020
	TDR		New		Disbursements		Charge-		Reclassifications/				TDR		Related
(Dollars in thousands)	Balance		TDRs		(Payments)		offs		Transfer In/(Out)		Payoffs		Balance		Allowance
2020
Accruing TDRs
Construction	$	41	$	—	$	(7)	$	—	$	—	$	—	$	34	$	—
Residential real estate		4,041		—		(113)		—		—		(83)		3,845		135
Commercial real estate		3,419		—		(97)		—		—		(204)		3,118		11
Commercial		—		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—		—
Total	$	7,501	$	—	$	(217)	$	—	$	—	$	(287)	$	6,997	$	146
Nonaccrual TDRs
Construction	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate		1,393		—		(51)		—		—		(1,342)		—		—
Commercial real estate		—		1,506		(401)		—		—		(1,105)		—		—
Commercial		299		—		(41)		—		—		—		258		—
Consumer		—		—		—		—		—		—		—		—
Total	$	1,692	$	1,506	$	(493)	$	—	$	—	$	(2,447)	$	258	$	—
Total	$	9,193	$	1,506	$	(710)	$	—	$	—	$	(2,734)	$	7,255	$	146

	1/1/2019												12/31/2019
	TDR		New		Disbursements		Charge-		Reclassifications/				TDR		Related
(Dollars in thousands)	Balance		TDRs		(Payments)		offs		Transfer In/(Out)		Payoffs		Balance		Allowance
2019
Accruing TDRs
Construction	$	51	$	—	$	(10)	$	—	$	—	$	—	$	41	$	—
Residential real estate		4,454		41		(101)		—		—		(353)		4,041		180
Commercial real estate		4,158		—		(739)		—		—		—		3,419		19
Commercial		—		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—		—
Total	$	8,663	$	41	$	(850)	$	—	$	—	$	(353)	$	7,501	$	199
Nonaccrual TDRs
Construction	$	2,798	$	—	$	(1,402)	$	(3)	$	(1,393)	$	—	$	—	$	—
Residential real estate		—		—		—		—		1,393		—		1,393		113
Commercial real estate		—		—		—		—		—		—		—		—
Commercial		320		—		(21)		—		—		—		299		—
Consumer		—		—		—		—		—		—		—		—
Total	$	3,118	$	—	$	(1,423)	$	(3)	$	—	$	—	$	1,692	$	113
Total	$	11,781	$	41	$	(2,273)	$	(3)	$	—	$	(353)	$	9,193	$	312

The following table provides information on loans that were modified and considered TDRs during 2020 and 2019.

		Premodification		Postmodification
		outstanding		outstanding
	Number of	recorded		recorded		Related
(Dollars in thousands)	contracts	investment		investment		allowance
TDRs:
2020
Construction	—	$	—	$	—	$	—
Residential real estate	—		—		—		—
Commercial real estate	1		1,535		1,506		—
Commercial	—		—		—		—
Consumer	—		—		—		—
Total	1	$	1,535	$	1,506	$	—
2019
Construction	—	$	—	$	—	$	—
Residential real estate	3		2,310		2,119		—
Commercial real estate	1		2,152		1,531		—
Commercial	—		—		—		—
Consumer	—		—		—		—
Total	4	$	4,462	$	3,650	$	—

Financing Receivable Credit Quality Indicators

The following tables provide information on loan risk ratings as of December 31, 2020 and 2019.

					Special
(Dollars in thousands)	Pass/Performing		Pass/Watch		Mention		Substandard		Doubtful		Total
2020
Construction	$	81,926	$	22,547	$	1,990	$	297	$	—	$	106,760
Residential real estate		401,494		36,759		2,946		2,343		—		443,542
Commercial real estate		514,524		133,892		3,504		9,312		—		661,232
Commercial		182,166		25,870		2,948		272		—		211,256
Consumer		31,221		215		—		30		—		31,466
Total	$	1,211,331	$	219,283	$	11,388	$	12,254	$	—	$	1,454,256

					Special
(Dollars in thousands)	Pass/Performing		Pass/Watch		Mention		Substandard		Doubtful		Total
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

The following tables provide information on the aging of the loan portfolio as of December 31, 2020 and 2019.

	Accruing
				30‑59 days			60‑89 days			Greater than			Total
(Dollars in thousands)	Current			past due			past due			90 days			past due			Nonaccrual			Total
2020
Construction	$	106,463		$	—		$	—		$	—		$	—		$	297		$	106,760
Residential real estate		440,210			517			938			292			1,747			1,585			443,542
Commercial real estate		657,066			367			—			512			879			3,287			661,232
Commercial		210,704			226			68			—			294			258			211,256
Consumer		31,318			119			1			—			120			28			31,466
Total	$	1,445,761		$	1,229		$	1,007		$	804		$	3,040		$	5,455		$	1,454,256
Percent of total loans		99.3	%		0.1	%		0.1	%		0.1	%		0.3	%		0.4	%		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
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

The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for 2020 and 2019. Allocation of a portion of the allowance to one loan class does not preclude its availability to absorb losses in other loan classes.

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
2020
Allowance for credit losses:
Beginning Balance	$	1,576	$	2,501	$	4,032	$	1,929	$	469	$	10,507
Charge-offs		—		(201)		(601)		(286)		(9)		(1,097)
Recoveries		17		211		1		322		27		578
Net (charge-offs) recoveries		17		10		(600)		36		18		(519)
Provision		429		1,188		1,994		124		165		3,900
Ending Balance	$	2,022	$	3,699	$	5,426	$	2,089	$	652	$	13,888

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
2019
Allowance for credit losses:
Beginning Balance	$	2,662	$	2,353	$	3,077	$	1,949	$	302	$	10,343
Charge-offs		(3)		(646)		—		(411)		(37)		(1,097)
Recoveries		18		27		206		306		4		561
Net (charge-offs) recoveries		15		(619)		206		(105)		(33)		(536)
Provision		(1,101)		767		749		85		200		700
Ending Balance	$	1,576	$	2,501	$	4,032	$	1,929	$	469	$	10,507