Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Schedule of Financing Receivables

(Dollars in thousands)	2021		2020
Construction	$	239,353	$	106,760
Residential real estate		654,769		443,542
Commercial real estate		896,229		661,232
Commercial		203,377		211,256
Consumer		125,447		31,466
Total loans		2,119,175		1,454,256
Allowance for credit losses		(13,944)		(13,888)
Total loans, net	$	2,105,231	$	1,440,368

Schedule of loans acquired from Severn

	December 31, 2021
	Acquired Loans -		Acquired Loans -
	Purchased		Purchased		Acquired Loans -
(Dollars in thousands)	Credit Impaired		Performing		Total
Outstanding principal balance	$	36,943	$	524,474	$	561,417
Carrying amount
Construction	$	2,379	$	91,823	$	94,202
Residential real estate		17,326		167,580		184,906
Commercial real estate		13,594		202,819		216,413
Commercial		321		56,200		56,521
Consumer		30		921		951
Total loans	$	33,650	$	519,343	$	552,993

Schedule of PCI loans acquired

The following table presents a summary of the change in the accretable yield on PCI loans acquired from Severn.

	For the Year Ended
(Dollars in thousands)	December 31, 2021
Accretable yield, beginning of period	$	—
Additions		5,667
Accretion		(300)
Reclassification of nonaccretable difference due to improvement in expected cash flows		—
Other changes, net		—
Accretable yield, end of period	$	5,367

Allowance for Credit Losses on Financing Receivables

The following tables include impairment information relating to loans and the allowance for credit losses for the years ended December 31.

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
December 31, 2021
Loans individually evaluated for impairment	$	321	$	3,717	$	3,833	$	226	$	—	$	8,097
Loans collectively evaluated for impairment		236,653		633,726		878,802		202,830		125,417		2,077,428
Acquired loans - PCI		2,379		17,326		13,594		321		30		33,650
Total loans	$	239,353	$	654,769	$	896,229	$	203,377	$	125,447	$	2,119,175
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	$	—	$	172	$	1	$	—	$	—	$	173
Loans collectively evaluated for impairment		2,454		2,686		4,597		2,070		1,964		13,771
Acquired loans - PCI		—		—		—		—		—		—
Total allowance	$	2,454	$	2,858	$	4,598	$	2,070	$	1,964	$	13,944

			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

The following tables provide information on impaired loans and any related allowance by loan class as of December 31. 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				Year-to-date		Interest
	principal		with no		with an		Related		average recorded		recorded
(Dollars in thousands)	balance		allowance		allowance		allowance		investment		investment
December 31, 2021
Impaired nonaccrual loans:
Construction	$	297	$	297	$	—	$	—	$	297	$	—
Residential real estate		882		803		—		—		1,095		—
Commercial real estate		994		606		—		—		2,122		—
Commercial		380		216		—		—		242		—
Consumer		—		—		—		—		9		—
Total	$	2,553	$	1,922	$	—	$	—	$	3,765	$	—
Impaired accruing TDRs:
Construction	$	24	$	24	$	—	$	—	$	30	$	3
Residential real estate		2,965		475		2,361		172		3,150		146
Commercial real estate		2,807		2,352		455		1		2,952		87
Commercial		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total	$	5,796	$	2,851	$	2,816	$	173	$	6,132	$	236
Other impaired accruing loans:
Construction	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate		78		78		—		—		465		21
Commercial real estate		420		420		—		—		470		17
Commercial		10		10		—		—		13		—
Consumer		—		—		—		—		—		—
Total	$	508	$	508	$	—	$	—	$	948	$	38
Total impaired loans:
Construction	$	321	$	321	$	—	$	—	$	327	$	3
Residential real estate		3,925		1,356		2,361		172		4,710		167
Commercial real estate		4,221		3,378		455		1		5,544		104
Commercial		390		226		—		—		255		—
Consumer		—		—		—		—		9		—
Total	$	8,857	$	5,281	$	2,816	$	173	$	10,845	$	274

			Recorded		Recorded
	Unpaid		investment		investment				Year-to-date		Interest
	principal		with no		with an		Related		average recorded		income
(Dollars in thousands)	balance		allowance		allowance		allowance		investment		recognized
December 31, 2020
Impaired nonaccrual loans:
Construction	$	297	$	297	$	—	$	—	$	247	$	—
Residential real estate		1,665		1,585		—		—		2,648		—
Commercial real estate		4,288		3,220		67		67		5,669		—
Commercial		401		258		—		—		390		—
Consumer		28		28		—		—		9		—
Total	$	6,679	$	5,388	$	67	$	67	$	8,963	$	—
Impaired accruing TDRs:
Construction	$	34	$	34	$	—	$	—	$	37	$	3
Residential real estate		3,845		2,617		1,228		135		3,920		160
Commercial real estate		3,118		2,479		639		11		3,349		104
Commercial		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total	$	6,997	$	5,130	$	1,867	$	146	$	7,306	$	267
Other impaired accruing loans:
Construction	$	—	$	—	$	—	$	—	$	25	$	—
Residential real estate		292		292		—		—		362		2
Commercial real estate		512		512		—		—		774		5
Commercial		—		—		—		—		13		—
Consumer		—		—		—		—		9		—
Total	$	804	$	804	$	—	$	—	$	1,183	$	7
Total impaired loans:
Construction	$	331	$	331	$	—	$	—	$	309	$	3
Residential real estate		5,802		4,494		1,228		135		6,930		162
Commercial real estate		7,918		6,211		706		78		9,792		109
Commercial		401		258		—		—		403		—
Consumer		28		28		—		—		18		—
Total	$	14,480	$	11,322	$	1,934	$	213	$	17,452	$	274

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.

	1/1/2021												12/31/2021
	TDR		New		Disbursements		Charge-		Reclassifications/				TDR		Related
(Dollars in thousands)	Balance		TDRs		(Payments)		offs		Transfer In/(Out)		Payoffs		Balance		Allowance
For year ended
December 31, 2021
Accruing TDRs
Construction	$	34	$	—	$	(10)	$	—	$	—	$	—	$	24	$	—
Residential real estate		3,845		—		(109)		—		—		(900)		2,836		172
Commercial real estate		3,118		—		(311)		—		—		—		2,807		1
Commercial		—		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—		—
Total	$	6,997	$	—	$	(430)	$	—	$	—	$	(900)	$	5,667	$	173
Nonaccrual TDRs
Construction	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate		—		—		—		—		—		—		—		—
Commercial real estate		—		—		—		—		—		—		—		—
Commercial		258		—		(42)		—		—		—		216		—
Consumer		—		—		—		—		—		—		—		—
Total	$	258	$	—	$	(42)	$	—	$	—	$	—	$	216	$	—
Total	$	7,255	$	—	$	(472)	$	—	$	—	$	(900)	$	5,883	$	173

	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
For year ended
December 31, 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

The following tables provide information on loans that were modified and considered to be TDRs for the years ended December 31.

		Premodification		Postmodification
		outstanding		outstanding
	Number of	recorded		recorded		Related
(Dollars in thousands)	contracts	investment		investment		allowance
TDRs:
For year ended
December 31, 2021
Construction	—	$	—	$	—	$	—
Residential real estate	—		—		—		—
Commercial real estate	—		—		—		—
Commercial	—		—		—		—
Consumer	—		—		—		—
Total	—	$	—	$	—	$	—
For year ended
December 31, 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

The following tables provide information on loan risk ratings at December 31.

					Special
(Dollars in thousands)	Pass/Performing		Pass/Watch		Mention		Substandard		Doubtful		PCI		Total
December 31, 2021
Construction	$	210,287	$	24,513	$	1,877	$	297	$	—	$	2,379	$	239,353
Residential real estate		596,694		38,309		1,539		901		—		17,326		654,769
Commercial real estate		724,561		151,209		4,535		2,330		—		13,594		896,229
Commercial		186,176		16,654		—		226		—		321		203,377
Consumer		125,200		215		—		2		—		30		125,447
Total	$	1,842,918	$	230,900	$	7,951	$	3,756	$	—	$	33,650	$	2,119,175

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

The following tables provide information on the aging of the loan portfolio at December 31.

	Accruing
				30‑59 days			60‑89 days			Greater than			Total
(Dollars in thousands)	Current			past due			past due			90 days			past due			Nonaccrual			PCI			Total
December 31, 2021
Construction	$	235,757		$	920		$	—		$	—		$	920		$	297		$	2,379		$	239,353
Residential real estate		635,166			1,371			25			78			1,474			803			17,326			654,769
Commercial real estate		881,350			259			—			420			679			606			13,594			896,229
Commercial		202,503			183			62			10			255			298			321			203,377
Consumer		125,130			287			—			—			287			—			30			125,447
Total	$	2,079,906		$	3,020		$	87		$	508		$	3,615		$	2,004		$	33,650		$	2,119,175
Percent of total loans		98.2	%		0.1	%		—	%		—	%		0.1	%		0.1	%		1.6	%		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			PCI			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 year ended
December 31, 2021
Allowance for credit losses:
Beginning Balance	$	2,022	$	3,699	$	5,426	$	2,089	$	652	$	13,888
Charge-offs		—		—		—		(235)		(28)		(263)
Recoveries		278		82		114		193		10		677
Net (charge-offs) recoveries		278		82		114		(42)		(18)		414
Provision		154		(923)		(942)		23		1,330		(358)
Ending Balance	$	2,454	$	2,858	$	4,598	$	2,070	$	1,964	$	13,944

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