Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Schedule of Financing Receivables

(Dollars in thousands)	June 30, 2022		December 31, 2021
Construction	$	263,069	$	239,353
Residential real estate		695,421		654,769
Commercial real estate		953,090		896,229
Commercial		158,345		203,377
Consumer		194,654		125,447
Total loans		2,264,579		2,119,175
Allowance for credit losses		(15,483)		(13,944)
Total loans, net	$	2,249,096	$	2,105,231

Schedule of loans acquired from Severn

	June 30, 2022
	Acquired Loans -		Acquired Loans -
	Purchased		Purchased		Acquired Loans -
(Dollars in thousands)	Credit Impaired		Performing		Total
Outstanding principal balance	$	32,398	$	426,735	$	459,133
Carrying amount
Construction	$	681	$	53,864	$	54,545
Residential real estate		15,492		138,304		153,796
Commercial real estate		12,860		187,851		200,711
Commercial		239		41,451		41,690
Consumer		23		767		790
Total loans	$	29,295	$	422,237	$	451,532

	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

	For the Six Months Ended
(Dollars in thousands)	June 30, 2022
Accretable yield, beginning of period	$	5,367
Accretion		(788)
Reclassification of nonaccretable difference due to improvement in expected cash flows		325
Other changes, net		237
Accretable yield, end of period	$	5,141

Allowance for Credit Losses on Financing Receivables

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
June 30, 2022
Loans individually evaluated for impairment	$	472	$	5,801	$	3,782	$	204	$	103	$	10,362
Loans collectively evaluated for impairment		261,916		674,128		936,448		157,902		194,528		2,224,922
Acquired loans - PCI		681		15,492		12,860		239		23		29,295
Total loans	$	263,069	$	695,421	$	953,090	$	158,345	$	194,654	$	2,264,579
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	$	—	$	158	$	—	$	—	$	3	$	161
Loans collectively evaluated for impairment		3,345		2,620		4,441		1,681		3,235		15,322
Acquired loans - PCI		—		—		—		—		—		—
Total allowance	$	3,345	$	2,778	$	4,441	$	1,681	$	3,238	$	15,483

			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

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		income
(Dollars in thousands)	balance		allowance		allowance		allowance		investment		investment		recognized
June 30, 2022
Impaired nonaccrual loans:
Construction	$	297	$	297	$	—	$	—	$	314	$	322	$	—
Residential real estate		941		840		18		—		1,487		1,482		—
Commercial real estate		540		539		—		—		740		823		—
Commercial		379		204		—		—		208		265		—
Consumer		47		47		—		—		31		52		—
Total	$	2,204	$	1,927	$	18	$	—	$	2,780	$	2,944	$	—
Impaired accruing TDRs:
Construction	$	17	$	17	$	—	$	—	$	18	$	20	$	—
Residential real estate		5,196		2,660		2,199		158		2,773		3,221		56
Commercial real estate		2,509		2,123		386		—		2,147		2,431		38
Commercial		—		—		—		—		—		—		—
Consumer		56		—		56		3		—		9		—
Total	$	7,778	$	4,800	$	2,641	$	161	$	4,938	$	5,681	$	94
Other impaired accruing loans:
Construction	$	158	$	158	$	—	$	—	$	265	$	133	$	3
Residential real estate		84		84		—		—		5		17		4
Commercial real estate		734		734		—		—		524		471		4
Commercial		—		—		—		—		—		4		1
Consumer		—		—		—		—		—		19		—
Total	$	976	$	976	$	—	$	—	$	794	$	644	$	12
Total impaired loans:
Construction	$	472	$	472	$	—	$	—	$	597	$	475	$	3
Residential real estate		6,221		3,584		2,217		158		4,265		4,720		60
Commercial real estate		3,783		3,396		386		—		3,411		3,725		42
Commercial		379		204		—		—		208		269		1
Consumer		103		47		56		3		31		80		—
Total	$	10,958	$	7,703	$	2,659	$	161	$	8,512	$	9,269	$	106

			Recorded		Recorded				June 30, 2022
	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, 2021
Impaired nonaccrual loans:
Construction	$	297	$	297	$	—	$	—	$	297	$	297	$	—
Residential real estate		882		803		—		—		1,204		1,307		—
Commercial real estate		994		606		—		—		2,214		2,613		—
Commercial		380		216		—		—		241		246		—
Consumer		—		—		—		—		9		19		—
Total	$	2,553	$	1,922	$	—	$	—	$	3,965	$	4,482	$	—
Impaired accruing TDRs:
Construction	$	24	$	24	$	—	$	—	$	31	$	32	$	1
Residential real estate		2,965		475		2,361		172		3,354		3,442		89
Commercial real estate		2,807		2,352		455		1		3,005		3,035		46
Commercial		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—
Total	$	5,796	$	2,851	$	2,816	$	173	$	6,390	$	6,509	$	136
Other impaired accruing loans:
Construction	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate		78		78		—		—		359		606		7
Commercial real estate		420		420		—		—		479		495		2
Commercial		10		10		—		—		—		25		—
Consumer		—		—		—		—		—		—		—
Total	$	508	$	508	$	—	$	—	$	838	$	1,126	$	9
Total impaired loans:
Construction	$	321	$	321	$	—	$	—	$	328	$	329	$	1
Residential real estate		3,925		1,356		2,361		172		4,917		5,355		96
Commercial real estate		4,221		3,378		455		1		5,698		6,143		48
Commercial		390		226		—		—		241		271		—
Consumer		—		—		—		—		9		19		—
Total	$	8,857	$	5,281	$	2,816	$	173	$	11,193	$	12,117	$	145

Troubled Debt Restructurings on Financing Receivables

	1/1/2022												6/30/2022
	TDR		New		Disbursements		Charge-		Reclassifications/				TDR		Related
(Dollars in thousands)	Balance		TDRs		(Payments)		offs		Transfer In/(Out)		Payoffs		Balance		Allowance
For the Six Months Ended
June 30, 2022
Accruing TDRs
Construction	$	24	$	—	$	(7)	$	—	$	—	$	—	$	17	$	—
Residential real estate		2,836		—		(51)		—		(20)		—		2,765		158
Commercial real estate		2,807		—		(134)		—		—		(561)		2,112		—
Commercial		—		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—		—
Total	$	5,667	$	—	$	(192)	$	—	$	(20)	$	(561)	$	4,894	$	158
Nonaccrual TDRs
Construction	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate		—		—		(3)		—		20		—		17		—
Commercial real estate		—		—		—		—		—		—		—		—
Commercial		216		—		(21)		—		—		—		195		—
Consumer		—		—		—		—		—		—		—		—
Total	$	216	$	—	$	(24)	$	—	$	20	$	—	$	212	$	—
Total	$	5,883	$	—	$	(216)	$	—	$	—	$	(561)	$	5,106	$	158

	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 the 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

Financing Receivable Credit Quality Indicators

					Special
(Dollars in thousands)	Pass/Performing		Pass/Watch		Mention		Substandard		Doubtful		PCI		Total
June 30, 2022
Construction	$	237,742	$	22,473	$	1,824	$	349	$	—	$	681	$	263,069
Residential real estate		643,626		34,220		988		1,095		—		15,492		695,421
Commercial real estate		822,320		114,236		1,461		2,213		—		12,860		953,090
Commercial		140,086		17,319		497		204		—		239		158,345
Consumer		194,375		208		—		48		—		23		194,654
Total	$	2,038,149	$	188,456	$	4,770	$	3,909	$	—	$	29,295	$	2,264,579

					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

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			PCI			Total
June 30, 2022
Construction	$	261,432		$	450		$	—		$	209		$	659		$	297		$	681		$	263,069
Residential real estate		677,181			614			729			—			1,343			1,405			15,492			695,421
Commercial real estate		938,714			161			21			594			776			740			12,860			953,090
Commercial		157,862			—			40			—			40			204			239			158,345
Consumer		194,474			110			—			—			110			47			23			194,654
Total	$	2,229,663		$	1,335		$	790		$	803		$	2,928		$	2,693		$	29,295		$	2,264,579
Percent of total loans		98.5	%		0.1	%		—	%		—	%		0.1	%		0.1	%		1.3	%		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			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	%

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, 2022
Allowance for credit losses:
Beginning Balance	$	2,857	$	2,575	$	4,500	$	1,805	$	2,973	$	14,710
Charge-offs		—		(4)		(6)		(122)		(15)		(147)
Recoveries		4		73		555		72		16		720
Net (charge-offs) recoveries		4		69		549		(50)		1		573
Provision		484		134		(608)		(74)		264		200
Ending Balance	$	3,345	$	2,778	$	4,441	$	1,681	$	3,238	$	15,483

			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 six months ended
June 30, 2022
Allowance for credit losses:
Beginning Balance	$	2,454	$	2,858	$	4,598	$	2,070	$	1,964	$	13,944
Charge-offs		—		(4)		(6)		(214)		(31)		(255)
Recoveries		7		119		705		140		23		994
Net (charge-offs) recoveries		7		115		699		(74)		(8)		739
Provision		884		(195)		(856)		(315)		1,282		800
Ending Balance	$	3,345	$	2,778	$	4,441	$	1,681	$	3,238	$	15,483

			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