Loans and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Schedule of Financing Receivables

(Dollars in thousands)	September 30, 2021		December 31, 2020
Construction	$	130,590	$	106,760
Residential real estate		460,890		443,542
Commercial real estate		663,894		661,232
Commercial		145,217		211,256
Consumer		94,306		31,466
Total loans		1,494,897		1,454,256
Allowance for credit losses		(15,525)		(13,888)
Total loans, net	$	1,479,372	$	1,440,368

Allowance for Credit Losses on Financing Receivables

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
September 30, 2021
Loans individually evaluated for impairment	$	324	$	4,007	$	5,397	$	227	$	—	$	9,955
Loans collectively evaluated for impairment		130,266		456,883		658,497		144,990		94,306		1,484,942
Total loans	$	130,590	$	460,890	$	663,894	$	145,217	$	94,306	$	1,494,897
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	$	—	$	84	$	—	$	—	$	—	$	84
Loans collectively evaluated for impairment		2,621		3,814		5,527		1,852		1,627		15,441
Total allowance	$	2,621	$	3,898	$	5,527	$	1,852	$	1,627	$	15,525

			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
September 30, 2021
Impaired nonaccrual loans:
Construction	$	297	$	297	$	—	$	—	$	297	$	297	$	—
Residential real estate		899		817		—		—		959		1,191		—
Commercial real estate		2,504		2,116		—		—		2,150		2,459		—
Commercial		385		227		—		—		230		241		—
Consumer		—		—		—		—		—		12		—
Total	$	4,085	$	3,457	$	—	$	—	$	3,636	$	4,200	$	—
Impaired accruing TDRs:
Construction	$	27	$	27	$	—	$	—	$	28	$	31	$	2
Residential real estate		2,863		1,754		1,109		84		2,871		3,252		118
Commercial real estate		2,860		2,860		—		—		2,913		2,994		67
Commercial		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—
Total	$	5,750	$	4,641	$	1,109	$	84	$	5,812	$	6,277	$	187
Other impaired accruing loans:
Construction	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate		327		327		—		—		328		513		7
Commercial real estate		421		421		—		—		421		470		10
Commercial		—		—		—		—		—		17		—
Consumer		—		—		—		—		—		—		—
Total	$	748	$	748	$	—	$	—	$	749	$	1,000	$	17
Total impaired loans:
Construction	$	324	$	324	$	—	$	—	$	325	$	328	$	2
Residential real estate		4,089		2,898		1,109		84		4,158		4,956		125
Commercial real estate		5,785		5,397		—		—		5,484		5,923		77
Commercial		385		227		—		—		230		258		—
Consumer		—		—		—		—		—		12		—
Total	$	10,583	$	8,846	$	1,109	$	84	$	10,197	$	11,477	$	204

			Recorded		Recorded				September 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	$	231	$	—
Residential real estate		1,665		1,585		—		—		2,306		2,910		—
Commercial real estate		4,288		3,220		67		67		4,498		6,235		—
Commercial		401		258		—		—		355		429		—
Consumer		28		28		—		—		9		3		—
Total	$	6,679	$	5,388	$	67	$	67	$	7,465	$	9,808	$	—
Impaired accruing TDRs:
Construction	$	34	$	34	$	—	$	—	$	37	$	38	$	2
Residential real estate		3,845		2,617		1,228		135		3,886		3,940		120
Commercial real estate		3,118		2,479		639		11		3,357		3,379		70
Commercial		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—
Total	$	6,997	$	5,130	$	1,867	$	146	$	7,280	$	7,357	$	192
Other impaired accruing loans:
Construction	$	—	$	—	$	—	$	—	$	—	$	33	$	—
Residential real estate		292		292		—		—		389		393		1
Commercial real estate		512		512		—		—		830		854		3
Commercial		—		—		—		—		42		18		—
Consumer		—		—		—		—		19		12		—
Total	$	804	$	804	$	—	$	—	$	1,280	$	1,310	$	4
Total impaired loans:
Construction	$	331	$	331	$	—	$	—	$	334	$	302	$	2
Residential real estate		5,802		4,494		1,228		135		6,581		7,243		121
Commercial real estate		7,918		6,211		706		78		8,685		10,468		73
Commercial		401		258		—		—		397		447		—
Consumer		28		28		—		—		28		15		—
Total	$	14,480	$	11,322	$	1,934	$	213	$	16,025	$	18,475	$	196

Troubled Debt Restructurings on Financing Receivables

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

	1/1/2021												9/30/2021
	TDR		New		Disbursements		Charge-		Reclassifications/				TDR		Related
(Dollars in thousands)	Balance		TDRs		(Payments)		offs		Transfer In/(Out)		Payoffs		Balance		Allowance
For nine months ended
September 30, 2021
Accruing TDRs
Construction	$	34	$	—	$	(7)	$	—	$	—	$	—	$	27	$	—
Residential real estate		3,845		—		(82)		—		—		(900)		2,863		84
Commercial real estate		3,118		—		(258)		—		—		—		2,860		—
Commercial		—		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—		—
Total	$	6,997	$	—	$	(347)	$	—	$	—	$	(900)	$	5,750	$	84
Nonaccrual TDRs
Construction	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate		—		—		—		—		—		—		—		—
Commercial real estate		—		—		—		—		—		—		—		—
Commercial		258		—		(31)		—		—		—		227		—
Consumer		—		—		—		—		—		—		—		—
Total	$	258	$	—	$	(31)	$	—	$	—	$	—	$	227	$	—
Total	$	7,255	$	—	$	(378)	$	—	$	—	$	(900)	$	5,977	$	84

	1/1/2020												9/30/2020
	TDR		New		Disbursements		Charge-		Reclassifications/				TDR		Related
(Dollars in thousands)	Balance		TDRs		(Payments)		offs		Transfer In/(Out)		Payoffs		Balance		Allowance
For nine months ended
September 30, 2020
Accruing TDRs
Construction	$	41	$	—	$	(5)	$	—	$	—	$	—	$	36	$	—
Residential real estate		4,041		—		(80)		—		—		(83)		3,878		142
Commercial real estate		3,419		—		(66)		—		—		—		3,353		14
Commercial		—		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—		—
Total	$	7,501	$	—	$	(151)	$	—	$	—	$	(83)	$	7,267	$	156
Nonaccrual TDRs
Construction	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate		1,393		—		(51)		—		—		(1,342)		—		—
Commercial real estate		—		1,506		(401)		—		—		—		1,105		—
Commercial		299		—		(30)		—		—		—		269		—
Consumer		—		—		—		—		—		—		—		—
Total	$	1,692	$	1,506	$	(482)	$	—	$	—	$	(1,342)	$	1,374	$	—
Total	$	9,193	$	1,506	$	(633)	$	—	$	—	$	(1,425)	$	8,641	$	156

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

		Premodification		Postmodification
		outstanding		outstanding
	Number of	recorded		recorded		Related
(Dollars in thousands)	contracts	investment		investment		allowance
TDRs:
For nine months ended
September 30, 2021
Construction	—	$	—	$	—	$	—
Residential real estate	—		—		—		—
Commercial real estate	—		—		—		—
Commercial	—		—		—		—
Consumer	—		—		—		—
Total	—	$	—	$	—	$	—
For nine months ended
September 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
September 30, 2021
Construction	$	101,708	$	26,670	$	1,915	$	297	$	—	$	130,590
Residential real estate		423,355		34,664		1,767		1,104		—		460,890
Commercial real estate		514,583		137,759		4,985		6,567		—		663,894
Commercial		127,807		16,885		286		239		—		145,217
Consumer		94,143		161		—		2		—		94,306
Total	$	1,261,596	$	216,139	$	8,953	$	8,209	$	—	$	1,494,897

					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
September 30, 2021
Construction	$	130,266		$	—		$	27		$	—		$	27		$	297		$	130,590
Residential real estate		458,790			530			425			327			1,282			818			460,890
Commercial real estate		661,208			149			—			421			570			2,116			663,894
Commercial		144,979			—			12			—			12			226			145,217
Consumer		94,170			105			31			—			136			—			94,306
Total	$	1,489,413		$	784		$	495		$	748		$	2,027		$	3,457		$	1,494,897
Percent of total loans		99.6	%		0.1	%		—	%		0.1	%		0.2	%		0.2	%		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
September 30, 2021
Allowance for credit losses:
Beginning Balance	$	2,574	$	3,812	$	5,600	$	1,879	$	1,223	$	15,088
Charge-offs		—		—		—		(55)		(1)		(56)
Recoveries		161		9		—		26		7		203
Net (charge-offs) recoveries		161		9		—		(29)		6		147
Provision		(114)		77		(73)		2		398		290
Ending Balance	$	2,621	$	3,898	$	5,527	$	1,852	$	1,627	$	15,525

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
For three months ended
September 30, 2020
Allowance for credit losses:
Beginning Balance	$	1,497	$	2,639	$	4,097	$	2,355	$	502	$	11,090
Charge-offs		—		(10)		(1)		(89)		(1)		(101)
Recoveries		5		199		1		81		2		288
Net (charge-offs) recoveries		5		189		—		(8)		1		187
Provision		56		456		1,002		(126)		112		1,500
Ending Balance	$	1,558	$	3,284	$	5,099	$	2,221	$	615	$	12,777

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
For nine months ended
September 30, 2021
Allowance for credit losses:
Beginning Balance	$	2,022	$	3,699	$	5,426	$	2,089	$	652	$	13,888
Charge-offs		—		—		—		(162)		(5)		(167)
Recoveries		171		72		64		122		10		439
Net (charge-offs) recoveries		171		72		64		(40)		5		272
Provision		428		127		37		(197)		970		1,365
Ending Balance	$	2,621	$	3,898	$	5,527	$	1,852	$	1,627	$	15,525

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
For nine months ended
September 30, 2020
Allowance for credit losses:
Beginning Balance	$	1,576	$	2,501	$	4,032	$	1,929	$	469	$	10,507
Charge-offs		—		(201)		(601)		(208)		(8)		(1,018)
Recoveries		13		206		—		205		14		438
Net (charge-offs) recoveries		13		5		(601)		(3)		6		(580)
Provision		(31)		778		1,668		295		140		2,850
Ending Balance	$	1,558	$	3,284	$	5,099	$	2,221	$	615	$	12,777