Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Schedule of financing receivables

(Dollars in thousands)	March 31, 2023		December 31, 2022
Construction	$	250,447	$	246,319
Residential real estate		866,225		810,497
Commercial real estate		1,096,937		1,065,409
Commercial		140,312		147,856
Consumer		314,760		286,026
Total loans		2,668,681		2,556,107
Allowance for credit losses		(28,464)		(16,643)
Total loans, net	$	2,640,217	$	2,539,464

Schedule of Non accrual Loans

	Nonaccrual		Nonaccrual		Loans past due
	with no		with an		90 days or more
	allowance for		allowance for		and still
(Dollars in thousands)	credit loss		credit loss		accruing
March 31, 2023
Nonaccrual loans:
Construction	$	177	$	—	$	24
Residential real estate		1,477		12		218
Commercial real estate		—		—		369
Commercial		167		—		—
Consumer		37		24		—
Total	$	1,858	$	36	$	611
Interest income	$	—	$	—	$	1

Schedule of financing receivable credit quality indicators

															Revolving
	Term Loans by Origination Year												Revolving		converted to
(Dollars in thousands)	Prior		2019		2020		2021		2022		2023		loans		term loans		Total
March 31, 2023
Construction
Pass	$	28,379	$	7,814	$	16,531	$	67,810	$	108,670	$	20,197	$	786	$	—	$	250,187
Substandard		236		—		—		24		—		—		—		—		260
Total	$	28,615	$	7,814	$	16,531	$	67,834	$	108,670	$	20,197	$	786	$	—	$	250,447
Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate
Pass	$	226,659	$	38,023	$	75,277	$	175,925	$	222,994	$	53,436	$	70,635	$	—	$	862,949
Special Mention		932		—				—		—		—		256		—		1,188
Substandard		1,964		—		—		—		—		—		124		—		2,088
Total	$	229,555	$	38,023	$	75,277	$	175,925	$	222,994	$	53,436	$	71,015	$	—	$	866,225
Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate
Pass	$	389,646	$	106,316	$	155,585	$	173,010	$	208,815	$	49,380	$	10,047	$	28	$	1,092,827
Special Mention		1,762		142		—		1,535		—		—		—		—		3,439
Substandard		671		—		—		—		—		—		—		—		671
Total	$	392,079	$	106,458	$	155,585	$	174,545	$	208,815	$	49,380	$	10,047	$	28	$	1,096,937
Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial
Pass	$	18,465	$	4,291	$	11,125	$	35,137	$	17,833	$	1,211	$	50,327	$	1,287	$	139,676
Special Mention		—		—		—		469		—		—		—		—		469
Substandard		167		—		—		—		—		—		—		—		167
Total	$	18,632	$	4,291	$	11,125	$	35,606	$	17,833	$	1,211	$	50,327	$	1,287	$	140,312
Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	(107)	$	—	$	—	$	(107)
Consumer
Pass	$	1,060	$	1,825	$	19,104	$	94,357	$	163,213	$	34,468	$	671	$	—	$	314,698
Special Mention		—		—		—		—		—		—		2		—		2
Substandard		—		27		—		10		23		—		—		—		60
Total	$	1,060	$	1,852	$	19,104	$	94,367	$	163,236	$	34,468	$	673	$	—	$	314,760
Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total loans by risk category	$	669,941	$	158,438	$	277,622	$	548,277	$	721,548	$	158,692	$	132,848	$	1,315	$	2,668,681
Total gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	(107)	$	—	$	—	$	(107)

					Special
(Dollars in thousands)	Pass/Performing (1)		Pass		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.

Schedule of past due financing receivables

The following tables provide information on the aging of the loan portfolio as of March 31, 2023 and December 31, 2022.

	Accruing
				30‑59 days			60‑89 days			90 days or more			Total
(Dollars in thousands)	Current (1)			past due			past due			past due			past due			Nonaccrual			Total
March 31, 2023
Construction	$	249,446		$	731		$	69		$	24		$	824		$	177		$	250,447
Residential real estate		858,389			5,177			952			218			6,347			1,489			866,225
Commercial real estate		1,096,189			337			42			369			748			—			1,096,937
Commercial		140,096			45			4			—			49			167			140,312
Consumer		314,039			633			27			—			660			61			314,760
Total	$	2,658,159		$	6,923		$	1,094		$	611		$	8,628		$	1,894		$	2,668,681
Percent of total loans		99.6	%		0.3	%		—	%		—	%		0.3	%		0.1	%		100.0	%

(1) Includes loans measured at fair value of $9.5 million at March 31, 2023.

	Accruing
				30‑59 days			60‑89 days			90 days or more			Total
(Dollars in thousands)	Current (1)			past due			past due			past due			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.

Schedule of 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
March 31, 2023
Allowance for credit losses:
Beginning Balance	$	2,973	$	2,622	$	4,899	$	1,652	$	4,497	$	16,643
Impact of ASC326 Adoption		1,222		4,974		3,742		401		452		10,791
Charge-offs (1)		—		—		—		(107)		—		(107)
Recoveries		3		31		—		53		—		87
Net (charge-offs) recoveries		3		31		—		(54)		—		(20)
Provision		(1,509)		1,120		1,217		(139)		361		1,050
Ending Balance	$	2,689	$	8,747	$	9,858	$	1,860	$	5,310	$	28,464

(1) Gross charge-offs of commercial loans for the three months ended March 31, 2023 included $107 of demand deposit overdrafts.

			Residential		Commercial
(Dollars in thousands)	Construction		real estate		real estate		Commercial		Consumer		Total
For three months ended
March 31, 2022
Allowance for credit losses:
Beginning Balance	$	2,454	$	2,858	$	4,598	$	2,070	$	1,964	$	13,944
Charge-offs		—		—		—		(92)		(16)		(108)
Recoveries		3		46		150		68		7		274
Net (charge-offs) recoveries		3		46		150		(24)		(9)		166
Provision		400		(329)		(248)		(241)		1,018		600
Ending Balance	$	2,857	$	2,575	$	4,500	$	1,805	$	2,973	$	14,710

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

Schedule of PCI loans acquired

	For the Three Months Ended
(Dollars in thousands)	March 31, 2022
Accretable yield, beginning of period	$	5,367
Accretion		(394)
Reclassification of nonaccretable difference due to improvement in expected cash flows		—
Other changes, net		—
Accretable yield, end of period	$	4,973

Schedule of 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.

Schedule of impaired financing receivables

			Recorded		Recorded				March 31, 2022
	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	$	—	$	—	$	331	$	—
Residential real estate		1,363		1,259		—		—		1,476		—
Commercial real estate		159		150		—		—		906		—
Commercial		359		174		—		—		321		—
Consumer		29		28		—		—		74		—
Total	$	2,207	$	1,908	$	—	$	—	$	3,108	$	—
Impaired accruing TDRs:
Construction	$	10	$	10	$	—	$	—	$	22	$	—
Residential real estate		2,849		1,176		1,539		127		2,809		25
Commercial real estate		1,680		1,680		—		—		2,581		23
Commercial		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total	$	4,539	$	2,866	$	1,539	$	127	$	5,412	$	48
Other impaired accruing loans:
Construction	$	24	$	24	$	—	$	—	$	—	$	—
Residential real estate		1,107		1,107		—		—		29		3
Commercial real estate		710		710		—		—		417		1
Commercial		—		—		—		—		9		—
Consumer		—		—		—		—		38		—
Total	$	1,841	$	1,841	$	—	$	—	$	493	$	4
Total impaired loans:
Construction	$	331	$	331	$	—	$	—	$	353	$	—
Residential real estate		5,319		3,542		1,539		127		4,314		28
Commercial real estate		2,549		2,540		—		—		3,904		24
Commercial		359		174		—		—		330		—
Consumer		29		28		—		—		112		—
Total	$	8,587	$	6,615	$	1,539	$	127	$	9,013	$	52