Loans and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Schedule of Financing Receivables

(Dollars in thousands)	September 30, 2022		December 31, 2021
Construction	$	230,119	$	239,353
Residential real estate		758,063		654,769
Commercial real estate		1,023,253		896,229
Commercial		160,430		203,377
Consumer		230,018		125,447
Total loans		2,401,883		2,119,175
Allowance for credit losses		(16,277)		(13,944)
Total loans, net	$	2,385,606	$	2,105,231

Schedule of loans acquired from Severn

	September 30, 2022
	Acquired Loans -		Acquired Loans -
	Purchased		Purchased		Acquired Loans -
(Dollars in thousands)	Credit Impaired		Performing		Total
Outstanding principal balance	$	31,334	$	383,767	$	415,101
Carrying amount
Construction	$	665	$	27,883	$	28,548
Residential real estate		15,061		132,311		147,372
Commercial real estate		12,339		180,493		192,832
Commercial		197		38,140		38,337
Consumer		19		733		752
Total loans	$	28,281	$	379,560	$	407,841

	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 Nine Months Ended
(Dollars in thousands)	September 30, 2022
Accretable yield, beginning of period	$	5,367
Accretion		(1,195)
Reclassification of nonaccretable difference due to improvement in expected cash flows		399
Other changes, net		287
Accretable yield, end of period	$	4,858

Allowance for Credit Losses on Financing Receivables

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
September 30, 2022
Loans individually evaluated for impairment	$	415	$	4,146	$	2,271	$	193	$	28	$	7,053
Loans collectively evaluated for impairment		229,039		738,856		1,008,643		160,040		229,971		2,366,549
Acquired loans - PCI		665		15,061		12,339		197		19		28,281
Total loans	$	230,119	$	758,063	$	1,023,253	$	160,430	$	230,018	$	2,401,883
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	$	—	$	150	$	—	$	—	$	—	$	150
Loans collectively evaluated for impairment		3,032		2,858		5,009		1,907		3,321		16,127
Acquired loans - PCI		—		—		—		—		—		—
Total allowance	$	3,032	$	3,008	$	5,009	$	1,907	$	3,321	$	16,277

			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
September 30, 2022
Impaired nonaccrual loans:
Construction	$	297	$	297	$	—	$	—	$	297	$	314	$	—
Residential real estate		1,374		1,268		15		—		1,639		1,534		—
Commercial real estate		159		150		—		—		466		704		—
Commercial		374		193		—		—		197		242		—
Consumer		29		28		—		—		40		48		—
Total	$	2,233	$	1,936	$	15	$	—	$	2,639	$	2,842	$	—
Impaired accruing TDRs:
Construction	$	14	$	14	$	—	$	—	$	14	$	18	$	1
Residential real estate		2,874		557		2,184		150		2,750		3,064		83
Commercial real estate		1,703		1,703		—		—		1,830		2,231		48
Commercial		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		6		—
Total	$	4,591	$	2,274	$	2,184	$	150	$	4,594	$	5,319	$	132
Other impaired accruing loans:
Construction	$	104	$	104	$	—	$	—	$	304	$	190	$	6
Residential real estate		122		122		—		—		745		259		3
Commercial real estate		418		418		—		—		537		493		7
Commercial		—		—		—		—		13		7		1
Consumer		—		—		—		—		—		13		—
Total	$	644	$	644	$	—	$	—	$	1,599	$	962	$	17
Total impaired loans:
Construction	$	415	$	415	$	—	$	—	$	615	$	522	$	7
Residential real estate		4,370		1,947		2,199		150		5,134		4,857		86
Commercial real estate		2,280		2,271		—		—		2,833		3,428		55
Commercial		374		193		—		—		210		249		1
Consumer		29		28		—		—		40		67		—
Total	$	7,468	$	4,854	$	2,199	$	150	$	8,832	$	9,123	$	149

			Recorded		Recorded				September 30, 2021
	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		—		—		959		1,191		—
Commercial real estate		994		606		—		—		2,150		2,459		—
Commercial		380		216		—		—		230		241		—
Consumer		—		—		—		—		—		12		—
Total	$	2,553	$	1,922	$	—	$	—	$	3,636	$	4,200	$	—
Impaired accruing TDRs:
Construction	$	24	$	24	$	—	$	—	$	28	$	31	$	2
Residential real estate		2,965		475		2,361		172		2,871		3,252		118
Commercial real estate		2,807		2,352		455		1		2,913		2,994		67
Commercial		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—
Total	$	5,796	$	2,851	$	2,816	$	173	$	5,812	$	6,277	$	187
Other impaired accruing loans:
Construction	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate		78		78		—		—		328		513		7
Commercial real estate		420		420		—		—		421		470		10
Commercial		10		10		—		—		—		17		—
Consumer		—		—		—		—		—		—		—
Total	$	508	$	508	$	—	$	—	$	749	$	1,000	$	17
Total impaired loans:
Construction	$	321	$	321	$	—	$	—	$	325	$	328	$	2
Residential real estate		3,925		1,356		2,361		172		4,158		4,956		125
Commercial real estate		4,221		3,378		455		1		5,484		5,923		77
Commercial		390		226		—		—		230		258		—
Consumer		—		—		—		—		—		12		—
Total	$	8,857	$	5,281	$	2,816	$	173	$	10,197	$	11,477	$	204

Troubled Debt Restructurings on Financing Receivables

	1/1/2022												9/30/2022
	TDR		New		Disbursements		Charge-		Reclassifications/				TDR		Related
(Dollars in thousands)	Balance		TDRs		(Payments)		offs		Transfer In/(Out)		Payoffs		Balance		Allowance
For the Nine Months Ended
September 30, 2022
Accruing TDRs
Construction	$	24	$	—	$	(10)	$	—	$	—	$	—	$	14	$	—
Residential real estate		2,836		—		(75)		—		(20)		—		2,741		150
Commercial real estate		2,807		—		(157)		—		—		(947)		1,703		—
Commercial		—		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—		—
Total	$	5,667	$	—	$	(242)	$	—	$	(20)	$	(947)	$	4,458	$	150
Nonaccrual TDRs
Construction	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate		—		—		(4)		—		20		—		16		—
Commercial real estate		—		—		—		—		—		—		—		—
Commercial		216		—		(32)		—		—		—		184		—
Consumer		—		—		—		—		—		—		—		—
Total	$	216	$	—	$	(36)	$	—	$	20	$	—	$	200	$	—
Total	$	5,883	$	—	$	(278)	$	—	$	—	$	(947)	$	4,658	$	150

	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 the 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

Financing Receivable Credit Quality Indicators

					Special
(Dollars in thousands)	Pass/Performing		Pass/Watch		Mention		Substandard		Doubtful		PCI		Total
September 30, 2022
Construction	$	217,823	$	9,553	$	1,781	$	297	$	—	$	665	$	230,119
Residential real estate		708,215		32,488		969		1,330		—		15,061		758,063
Commercial real estate		882,561		125,246		2,538		569		—		12,339		1,023,253
Commercial		141,864		17,677		499		193		—		197		160,430
Consumer		229,776		193		2		28		—		19		230,018
Total	$	2,180,239	$	185,157	$	5,789	$	2,417	$	—	$	28,281	$	2,401,883

					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
September 30, 2022
Construction	$	229,053		$	—		$	—		$	104		$	104		$	297		$	665		$	230,119
Residential real estate		738,911			2,032			657			121			2,810			1,281			15,061			758,063
Commercial real estate		1,009,749			596			—			419			1,015			150			12,339			1,023,253
Commercial		159,674			80			286			—			366			193			197			160,430
Consumer		229,218			742			11			—			753			28			19			230,018
Total	$	2,366,605		$	3,450		$	954		$	644		$	5,048		$	1,949		$	28,281		$	2,401,883
Percent of total loans		98.6	%		0.1	%		—	%		—	%		0.1	%		0.1	%		1.2	%		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			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
September 30, 2022
Allowance for credit losses:
Beginning Balance	$	3,345	$	2,778	$	4,441	$	1,681	$	3,238	$	15,483
Charge-offs		—		—		—		(202)		—		(202)
Recoveries		2		12		243		60		4		321
Net (charge-offs) recoveries		2		12		243		(142)		4		119
Provision		(315)		218		325		368		79		675
Ending Balance	$	3,032	$	3,008	$	5,009	$	1,907	$	3,321	$	16,277

			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 nine months ended
September 30, 2022
Allowance for credit losses:
Beginning Balance	$	2,454	$	2,858	$	4,598	$	2,070	$	1,964	$	13,944
Charge-offs		—		(4)		(6)		(416)		(31)		(457)
Recoveries		9		131		948		200		27		1,315
Net (charge-offs) recoveries		9		127		942		(216)		(4)		858
Provision		569		23		(531)		53		1,361		1,475
Ending Balance	$	3,032	$	3,008	$	5,009	$	1,907	$	3,321	$	16,277

			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