Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Schedule of Financing Receivables

(Dollars in thousands)	June 30, 2021		December 31, 2020
Construction	$	116,760	$	106,760
Residential real estate		449,867		443,542
Commercial real estate		655,252		661,232
Commercial		186,162		211,256
Consumer		64,388		31,466
Total loans		1,472,429		1,454,256
Allowance for credit losses		(15,088)		(13,888)
Total loans, net	$	1,457,341	$	1,440,368

Allowance for Credit Losses on Financing Receivables

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
June 30, 2021
Loans individually evaluated for impairment	$	327	$	4,898	$	5,575	$	237	$	—	$	11,037
Loans collectively evaluated for impairment		116,433		444,969		649,677		185,925		64,388		1,461,392
Total loans	$	116,760	$	449,867	$	655,252	$	186,162	$	64,388	$	1,472,429
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	$	—	$	90	$	—	$	—	$	—	$	90
Loans collectively evaluated for impairment		2,574		3,722		5,600		1,879		1,223		14,998
Total allowance	$	2,574	$	3,812	$	5,600	$	1,879	$	1,223	$	15,088

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
December 31, 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

Impaired Financing Receivables

			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
June 30, 2021
Impaired nonaccrual loans:
Construction	$	297	$	297	$	—	$	—	$	297	$	297	$	—
Residential real estate		1,318		1,239		—		—		1,204		1,307		—
Commercial real estate		2,562		2,174		—		—		2,214		2,613		—
Commercial		391		237		—		—		241		246		—
Consumer		—		—		—		—		9		19		—
Total	$	4,568	$	3,947	$	—	$	—	$	3,965	$	4,482	$	—
Impaired accruing TDRs:
Construction	$	30	$	30	$	—	$	—	$	31	$	32	$	1
Residential real estate		3,329		2,209		1,120		90		3,354		3,442		89
Commercial real estate		2,979		2,979		—		—		3,005		3,035		46
Commercial		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—
Total	$	6,338	$	5,218	$	1,120	$	90	$	6,390	$	6,509	$	136
Other impaired accruing loans:
Construction	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate		330		330		—		—		359		606		7
Commercial real estate		422		422		—		—		479		495		2
Commercial		—		—		—		—		—		25		—
Consumer		—		—		—		—		—		—		—
Total	$	752	$	752	$	—	$	—	$	838	$	1,126	$	9
Total impaired loans:
Construction	$	327	$	327	$	—	$	—	$	328	$	329	$	1
Residential real estate		4,977		3,778		1,120		90		4,917		5,355		96
Commercial real estate		5,963		5,575		—		—		5,698		6,143		48
Commercial		391		237		—		—		241		271		—
Consumer		—		—		—		—		9		19		—
Total	$	11,658	$	9,917	$	1,120	$	90	$	11,193	$	12,117	$	145

			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		income
(Dollars in thousands)	balance		allowance		allowance		allowance		investment		investment		recognized
December 31, 2020
Impaired nonaccrual loans:
Construction	$	297	$	297	$	—	$	—	$	297	$	198	$	—
Residential real estate		1,665		1,585		—		—		3,555		3,213		—
Commercial real estate		4,288		3,220		67		67		6,853		7,103		—
Commercial		401		258		—		—		551		466		—
Consumer		28		28		—		—		—		—		—
Total	$	6,679	$	5,388	$	67	$	67	$	11,256	$	10,980	$	—
Impaired accruing TDRs:
Construction	$	34	$	34	$	—	$	—	$	38	$	38	$	1
Residential real estate		3,845		2,617		1,228		135		3,912		3,967		79
Commercial real estate		3,118		2,479		639		11		3,373		3,390		47
Commercial		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—
Total	$	6,997	$	5,130	$	1,867	$	146	$	7,323	$	7,395	$	127
Other impaired accruing loans:
Construction	$	—	$	—	$	—	$	—	$	—	$	49	$	—
Residential real estate		292		292		—		—		179		394		1
Commercial real estate		512		512		—		—		1,053		867		3
Commercial		—		—		—		—		6		5		—
Consumer		—		—		—		—		16		9		—
Total	$	804	$	804	$	—	$	—	$	1,254	$	1,324	$	4
Total impaired loans:
Construction	$	331	$	331	$	—	$	—	$	335	$	285	$	1
Residential real estate		5,802		4,494		1,228		135		7,646		7,574		80
Commercial real estate		7,918		6,211		706		78		11,279		11,360		50
Commercial		401		258		—		—		557		471		—
Consumer		28		28		—		—		16		9		—
Total	$	14,480	$	11,322	$	1,934	$	213	$	19,833	$	19,699	$	131

Troubled Debt Restructurings on Financing Receivables

The following tables provide a roll-forward for TDRs as of June 30, 2021 and June 30, 2020.

	1/1/2021												6/30/2021
	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, 2021
Accruing TDRs
Construction	$	34	$	—	$	(4)	$	—	$	—	$	—	$	30	$	—
Residential real estate		3,845		—		(57)		—		—		(459)		3,329		90
Commercial real estate		3,118		—		(139)		—		—		—		2,979		—
Commercial		—		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—		—
Total	$	6,997	$	—	$	(200)	$	—	$	—	$	(459)	$	6,338	$	90
Nonaccrual TDRs
Construction	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate		—		—		—		—		—		—		—		—
Commercial real estate		—		—		—		—		—		—		—		—
Commercial		258		—		(21)		—		—		—		237		—
Consumer		—		—		—		—		—		—		—		—
Total	$	258	$	—	$	(21)	$	—	$	—	$	—	$	237	$	—
Total	$	7,255	$	—	$	(221)	$	—	$	—	$	(459)	$	6,575	$	90

	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

There were no loans modified and considered to be TDRs during the three months ended June 30, 2021 and June 30, 2020. The following tables provide information on loans that were modified and considered to be TDRs during the six months ended June 30, 2021 and June 30, 2020.

		Premodification		Postmodification
		outstanding		outstanding
	Number of	recorded		recorded		Related
(Dollars in thousands)	contracts	investment		investment		allowance
TDRs:
For six months ended
June 30, 2021
Construction	—	$	—	$	—	$	—
Residential real estate	—		—		—		—
Commercial real estate	—		—		—		—
Commercial	—		—		—		—
Consumer	—		—		—		—
Total	—	$	—	$	—	$	—
For six months ended
June 30, 2020
Construction	—	$	—	$	—	$	—
Residential real estate	—		—		—		—
Commercial real estate	1		1,535		1,506		—
Commercial	—		—		—		—
Consumer	—		—		—		—
Total	1	$	1,535	$	1,506	$	—

Financing Receivable Credit Quality Indicators

					Special
(Dollars in thousands)	Pass/Performing		Pass/Watch		Mention		Substandard		Doubtful		Total
June 30, 2021
Construction	$	87,587	$	26,923	$	1,953	$	297	$	—	$	116,760
Residential real estate		411,746		34,370		2,221		1,530		—		449,867
Commercial real estate		495,840		149,825		2,925		6,662		—		655,252
Commercial		167,089		18,133		689		251		—		186,162
Consumer		64,220		166		—		2		—		64,388
Total	$	1,226,482	$	229,417	$	7,788	$	8,742	$	—	$	1,472,429

					Special
(Dollars in thousands)	Pass/Performing		Pass/Watch		Mention		Substandard		Doubtful		Total
December 31, 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

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, 2021
Construction	$	116,433		$	—		$	30		$	—		$	30		$	297		$	116,760
Residential real estate		447,705			593			—			330			923			1,239			449,867
Commercial real estate		652,484			172			—			422			594			2,174			655,252
Commercial		185,748			36			141			—			177			237			186,162
Consumer		64,262			126			—			—			126			—			64,388
Total	$	1,466,632		$	927		$	171		$	752		$	1,850		$	3,947		$	1,472,429
Percent of total loans		99.5	%		0.1	%		—	%		0.1	%		0.2	%		0.3	%		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, 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	%

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, 2021
Allowance for credit losses:
Beginning Balance	$	2,796	$	3,699	$	5,097	$	2,000	$	721	$	14,313
Charge-offs		—		—		—		(46)		—		(46)
Recoveries		5		57		64		44		1		171
Net (charge-offs) recoveries		5		57		64		(2)		1		125
Provision		(227)		56		439		(119)		501		650
Ending Balance	$	2,574	$	3,812	$	5,600	$	1,879	$	1,223	$	15,088

			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) recoveries		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 six months ended
June 30, 2021
Allowance for credit losses:
Beginning Balance	$	2,022	$	3,699	$	5,426	$	2,089	$	652	$	13,888
Charge-offs		—		—		—		(107)		(4)		(111)
Recoveries		10		63		64		96		3		236
Net (charge-offs) recoveries		10		63		64		(11)		(1)		125
Provision		542		50		110		(199)		572		1,075
Ending Balance	$	2,574	$	3,812	$	5,600	$	1,879	$	1,223	$	15,088

			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) recoveries		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