Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Schedule of Financing Receivables

(Dollars in thousands)	2022		2021
Construction	$	246,319	$	239,353
Residential real estate		810,497		654,769
Commercial real estate		1,065,409		896,229
Commercial		147,856		203,377
Consumer		286,026		125,447
Total loans (1)		2,556,107		2,119,175
Allowance for credit losses		(16,643)		(13,944)
Total loans, net	$	2,539,464	$	2,105,231

(1) Includes net origination costs totaling $1.4 million and $1.2 million as of December 31, 2022 and 2021, respectively.

Schedule of loans acquired from Severn

	December 31, 2022
	Acquired Loans -		Acquired Loans -
	Purchased		Purchased		Acquired Loans -
(Dollars in thousands)	Credit Impaired		Performing		Total
Outstanding principal balance	$	29,620	$	349,262	$	378,882
Carrying amount
Construction	$	650	$	18,761	$	19,411
Residential real estate		13,956		116,118		130,074
Commercial real estate		11,866		174,278		186,144
Commercial		156		35,687		35,843
Consumer		14		697		711
Total loans	$	26,642	$	345,541	$	372,183

	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 Year Ended
(Dollars in thousands)	December 31, 2022
Accretable yield, beginning of period	$	5,367
Accretion		(1,603)
Reclassification of nonaccretable difference due to improvement in expected cash flows		469
Other changes, net		506
Accretable yield, end of period	$	4,739

Allowance for Credit Losses on Financing Receivables

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
December 31, 2022
Loans individually evaluated for impairment	$	331	$	5,081	$	2,540	$	174	$	28	$	8,154
Loans collectively evaluated for impairment		236,901		791,460		1,051,003		147,526		285,984		2,512,874
Acquired loans - PCI		650		13,956		11,866		156		14		26,642
Total loans (1)	$	237,882	$	810,497	$	1,065,409	$	147,856	$	286,026	$	2,547,670
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	$	—	$	127	$	—	$	—	$	—	$	127
Loans collectively evaluated for impairment		2,973		2,495		4,899		1,652		4,497		16,516
Total allowance	$	2,973	$	2,622	$	4,899	$	1,652	$	4,497	$	16,643

(1) Excludes loans measured at fair value of $8.4 million at December 31, 2022.

			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				Year-to-date		Interest
	principal		with no		with an		Related		average recorded		income
(Dollars in thousands)	balance		allowance		allowance		allowance		investment		recognized
December 31, 2022
Impaired nonaccrual loans:
Construction	$	297	$	297	$	—	$	—	$	309	$	—
Residential real estate		1,363		1,259		—		—		1,661		—
Commercial real estate		159		150		—		—		604		—
Commercial		359		174		—		—		227		—
Consumer		29		28		—		—		43		—
Total	$	2,207	$	1,908	$	—	$	—	$	2,844	$	—
Impaired accruing TDRs:
Construction	$	10	$	10	$	—	$	—	$	16	$	1
Residential real estate		2,849		1,176		1,539		127		2,979		108
Commercial real estate		1,680		1,680		—		—		2,095		56
Commercial		—		—		—		—		—		—
Consumer		—		—		—		—		5		—
Total	$	4,539	$	2,866	$	1,539	$	127	$	5,095	$	165
Other impaired accruing loans:
Construction	$	24	$	24	$	—	$	—	$	215	$	6
Residential real estate		1,107		1,107		—		—		474		3
Commercial real estate		710		710		—		—		553		30
Commercial		—		—		—		—		51		1
Consumer		—		—		—		—		15		—
Total	$	1,841	$	1,841	$	—	$	—	$	1,308	$	40
Total impaired loans:
Construction	$	331	$	331	$	—	$	—	$	540	$	7
Residential real estate		5,319		3,542		1,539		127		5,114		111
Commercial real estate		2,549		2,540		—		—		3,252		86
Commercial		359		174		—		—		278		1
Consumer		29		28		—		—		63		—
Total	$	8,587	$	6,615	$	1,539	$	127	$	9,247	$	205

			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, 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

Troubled Debt Restructurings on Financing Receivables

	1/1/2022												12/31/2022
	TDR		New		Disbursements		Charge-		Reclassifications/				TDR		Related
(Dollars in thousands)	Balance		TDRs		(Payments)		offs		Transfer In/(Out)		Payoffs		Balance		Allowance
For the Year Ended
December 31, 2022
Accruing TDRs
Construction	$	24	$	—	$	(14)	$	—	$	—	$	—	$	10	$	—
Residential real estate		2,836		—		(100)		—		(20)		(1)		2,715		127
Commercial real estate		2,807		—		(180)		—		—		(947)		1,680		—
Commercial		—		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—		—
Total	$	5,667	$	—	$	(294)	$	—	$	(20)	$	(948)	$	4,405	$	127
Nonaccrual TDRs
Construction	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate		—		—		(6)		—		20		—		14		—
Commercial real estate		—		—		—		—		—		—		—		—
Commercial		216		—		(46)		—		—		—		170		—
Consumer		—		—		—		—		—		—		—		—
Total	$	216	$	—	$	(52)	$	—	$	20	$	—	$	184	$	—
Total	$	5,883	$	—	$	(346)	$	—	$	—	$	(948)	$	4,589	$	127

	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 the 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

Financing Receivable Credit Quality Indicators

					Special
(Dollars in thousands)	Pass/Performing (1)		Pass/Watch		Mention		Substandard		Doubtful		PCI		Total
December 31, 2022
Construction	$	231,160	$	14,212	$	—	$	297	$	—	$	650	$	246,319
Residential real estate		761,405		32,467		1,239		1,430		—		13,956		810,497
Commercial real estate		929,501		121,711		1,814		517		—		11,866		1,065,409
Commercial		131,084		15,958		484		174		—		156		147,856
Consumer		285,786		196		2		28		—		14		286,026
Total	$	2,338,936	$	184,544	$	3,539	$	2,446	$	—	$	26,642	$	2,556,107

(1) Includes loans measured at fair value of $8.4 million at December 31, 2022.

					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 (1)			past due			past due			90 days			past due			Nonaccrual			PCI			Total
December 31, 2022
Construction	$	239,990		$	4,343		$	1,015		$	24		$	5,382		$	297		$	650		$	246,319
Residential real estate		787,070			6,214			891			1,107			8,212			1,259			13,956			810,497
Commercial real estate		1,052,314			369			—			710			1,079			150			11,866			1,065,409
Commercial		147,511			15			—			—			15			174			156			147,856
Consumer		285,750			223			11			—			234			28			14			286,026
Total	$	2,512,635		$	11,164		$	1,917		$	1,841		$	14,922		$	1,908		$	26,642		$	2,556,107
Percent of total loans		98.3	%		0.4	%		0.1	%		0.1	%		0.6	%		0.1	%		1.0	%		100.0	%

(1) Includes loans measured at fair value of $8.4 million at December 31, 2022.

	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 the year ended
December 31, 2022
Allowance for credit losses:
Beginning Balance	$	2,454	$	2,858	$	4,598	$	2,070	$	1,964	$	13,944
Charge-offs		—		(5)		(6)		(546)		(31)		(588)
Recoveries		13		142		951		227		29		1,362
Net (charge-offs) recoveries		13		137		945		(319)		(2)		774
Provision		506		(373)		(644)		(99)		2,535		1,925
Ending Balance	$	2,973	$	2,622	$	4,899	$	1,652	$	4,497	$	16,643

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
For the 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