Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2021

Financing Receivable, Allowance for Credit Loss [Line Items]

Schedule of Composition of Loan Portfolio

The following table summarizes the composition of our loan portfolio. Total gross loans are recorded net of deferred loan fees and costs, which totaled $4.6 million as of September 30, 2021 and $3.9 million as of December 31, 2020.

	September 30, 2021						December 31, 2020
(dollars in thousands)	Amount			% of Total			Amount			% of Total
Commercial
Owner occupied RE	$	470,614			19.7	%	$	433,320			20.2	%
Non-owner occupied RE		628,521			26.3	%		585,269			27.3	%
Construction		87,892			3.7	%		61,467			2.9	%
Business		307,969			12.9	%		307,599			14.4	%
Total commercial loans		1,494,996			62.6	%		1,387,655			64.8	%
Consumer
Real estate		648,276			27.1	%		536,311			25.0	%
Home equity		155,049			6.5	%		156,957			7.3	%
Construction		57,419			2.4	%		40,525			1.9	%
Other		33,307			1.4	%		21,419			1.0	%
Total consumer loans		894,051			37.4	%		755,212			35.2	%
Total gross loans, net of deferred fees		2,389,047			100.0	%		2,142,867			100.0	%
Less—allowance for loan losses		(36,075	)					(44,149	)
Total loans, net	$	2,352,972					$	2,098,718

Schedule of Loan Maturity Distribution by Type and Related Interest Rate

The information in the following tables summarizes the loan maturity distribution by type and related interest rate characteristics based on the contractual maturities of individual loans, including loans which may be subject to renewal at their contractual maturity. Renewal of such loans is subject to review and credit approval, as well as modification of terms upon maturity. Actual repayments of loans may differ from the maturities reflected below, because borrowers have the right to prepay obligations with or without prepayment penalties.

	September 30, 2021
			After one
	One year		but within		After five
(dollars in thousands)	or less		five years		years		Total
Commercial
Owner occupied RE	$	17,069		121,176		332,369		470,614
Non-owner occupied RE		32,463		315,742		280,316		628,521
Construction		11,666		22,095		54,131		87,892
Business		61,534		145,862		100,573		307,969
Total commercial loans		122,732		604,875		767,389		1,494,996
Consumer
Real estate		14,126		46,753		587,397		648,276
Home equity		3,099		22,683		129,267		155,049
Construction		703		1,831		54,885		57,419
Other		8,180		21,292		3,835		33,307
Total consumer loans		26,108		92,559		775,384		894,051
Total gross loans, net of deferred fees	$	148,840		697,434		1,542,773		2,389,047
Loans maturing after one year with:
Fixed interest rates							$	1,883,823
Floating interest rates								356,384

13

	December 31, 2020
			After one
	One year		but within		After five
(dollars in thousands)	or less		five years		years		Total
Commercial
Owner occupied RE	$	22,232		136,031		275,057		433,320
Non-owner occupied RE		39,359		335,249		210,661		585,269
Construction		21,824		15,785		23,858		61,467
Business		76,662		140,959		89,978		307,599
Total commercial loans		160,077		628,024		599,554		1,387,655
Consumer
Real estate		14,205		54,863		467,243		536,311
Home equity		4,824		23,835		128,298		156,957
Construction		1,629		1,234		37,662		40,525
Other		6,438		11,413		3,568		21,419
Total consumer		27,096		91,345		636,771		755,212
Total gross loan, net of deferred fees	$	187,173		719,369		1,236,325		2,142,867
Loans maturing after one year with:
Fixed interest rates							$	1,590,171
Floating interest rates								365,523

Schedule of Nonperforming Assets, Including Nonaccruing TDRs

Following is a summary of our nonperforming assets, including nonaccruing TDRs.

(dollars in thousands)	September 30, 2021			December 31, 2020
Commercial
Owner occupied RE	$	-			-
Non-owner occupied RE		7,400			1,143
Construction		-			139
Business		1,469			195
Consumer
Real estate		1,461			2,536
Home equity		818			547
Construction		-			-
Other		-			-
Nonaccruing troubled debt restructurings		2,730			3,509
Total nonaccrual loans, including nonaccruing TDRs		13,878			8,069
Other real estate owned		-			1,169
Total nonperforming assets	$	13,878			9,238
Nonperforming assets as a percentage of:
Total assets		0.50	%		0.37	%
Gross loans		0.58	%		0.43	%
Total loans over 90 days past due	$	554			2,296
Loans over 90 days past due and still accruing		-			-
Accruing troubled debt restructurings		4,044			4,893

Schedule of Key Information for Impaired Loans

The table below summarizes key information for impaired loans. The Company’s impaired loans include loans on nonaccrual status and loans modified in a TDR, whether on accrual or nonaccrual status. These impaired loans may have estimated impairment which is included in the allowance for loan losses. The Company’s commercial and consumer impaired loans are evaluated individually to determine the related allowance for loan losses.

			September 30, 2021
			Recorded investment
					Impaired loans		Impaired loans
	Unpaid				with no related		with related		Related
	Principal		Impaired		allowance for		allowance for		allowance for
(dollars in thousands)	Balance		loans		loan losses		loan losses		loan losses
Commercial
Owner occupied RE	$	1,269		1,269		1,269		-		-
Non-owner occupied RE		9,283		8,238		7,400		838		167
Construction		-		-		-		-		-
Business		3,333		3,303		1,469		1,834		788
Total commercial		13,885		12,810		10,138		2,672		955
Consumer
Real estate		3,035		2,936		2,109		828		139
Home equity		2,190		2,049		1,992		56		56
Construction		-		-		-		-		-
Other		126		126		-		126		15
Total consumer		5,351		5,111		4,101		1,010		210
Total	$	19,236		17,921		14,239		3,682		1,165

			December 31, 2020
			Recorded investment
				Impaired loans		Impaired loans
	Unpaid			with no related		with related		Related
	Principal		Impaired	allowance for		allowance for		allowance for
(dollars in thousands)	Balance		loans	loan losses		loan losses		loan losses
Commercial
Owner occupied RE	$	1,753	1,649		1,497		152		76
Non-owner occupied RE		3,212	2,188		705		1,483		366
Construction		141	139		139		-		-
Business		2,892	2,449		279		2,170		897
Total commercial		7,998	6,425		2,620		3,805		1,339
Consumer
Real estate		4,362	4,031		3,108		923		190
Home equity		2,498	2,371		2,096		275		163
Construction		-	-		-		-		-
Other		135	135		-		135		17
Total consumer		6,995	6,537		5,204		1,333		370
Total	$	14,993	12,962		7,824		5,138		1,709

Schedule of Average Recorded Investment and Interest Income Recognized on Impaired Loans

The following table provides the average recorded investment in impaired loans and the amount of interest income recognized on impaired loans after impairment by portfolio segment and class.

	Three months ended September 30, 2021					Three months ended September 30, 2020
	Average		Recognized		Average		Recognized
	recorded		interest		recorded		interest
(dollars in thousands)	investment		income		investment		income
Commercial
Owner occupied RE	$	1,269		17		2,985		40
Non-owner occupied RE		5,125		227		3,880		63
Construction		-		-		72		2
Business		2,665		61		2,506		51
Total commercial		9,059		305		9,443		156
Consumer
Real estate		3,609		-		3,063		58
Home equity		1,859		30		2,540		22
Construction		-		-		-		-
Other		127		1		139		1
Total consumer		5,595		31		5,742		81
Total	$	14,654		336		15,185		237

	Nine months ended					Nine months ended				Year ended
	September 30, 2021					September 31, 2020				December 31, 2020
	Average		Recognized		Average		Recognized		Average		Recognized
	recorded		interest		recorded		interest		recorded		interest
(dollars in thousands)	investment		income		investment		income		investment		income
Commercial
Owner occupied RE	$	1,419		49		2,617		73		2,423		88
Non-owner occupied RE		3,643		321		4,724		165		4,217		221
Construction		69		-		36		2		56		6
Business		2,497		115		2,270		98		2,306		243
Total commercial		7,628		485		9,647		338		9,002		558
Consumer
Real estate		3,911		102		3,207		98		3,372		170
Home equity		1,944		64		2,067		39		2,128		5
Construction		-		-		-		-		-		-
Other		130		3		143		3		141		79
Total consumer		5,985		169		5,417		140		5,641		254
Total	$	13,613		654		15,064		478		14,643		812

Schedule of Allowance for Loan Losses by Commercial and Consumer Portfolio Segments

The following table summarizes the activity related to the allowance for loan losses by commercial and consumer portfolio segments:

	Three months ended September 30, 2021
	Commercial											Consumer
	Owner			Non-owner
	occupied			occupied								Real			Home
(dollars in thousands)	RE			RE			Construction		Business			Estate			Equity			Construction			Other			Total
Balance, beginning of period	$	7,099			13,223			951		6,722			10,028			2,562			753			574			41,912
Provision for loan losses		(1,159	)		(1,558	)		149		(1,246	)		(1,469	)		(598	)		(28	)		(91	)		(6,000	)
Loan charge-offs		-			(159	)		-		(84	)		-			-			-			-			(243	)
Loan recoveries		-			129			-		58			18			193			-			8			406
Net loan recoveries (charge-offs)		-			(30	)		-		(26	)		18			193			-			8			163
Balance, end of period	$	5,940			11,635			1,100		5,450			8,577			2,157			725			491			36,075
Net charge-offs (recoveries) to average loans   (annualized)																									(0.03	%)
Allowance for loan losses to gross loans																									1.51	%
Allowance for loan losses to nonperforming loans																									259.95	%

	Three months ended September 30, 2020
	Commercial										Consumer
	Owner		Non-owner
	occupied		occupied								Real		Home
(dollars in thousands)	RE		RE			Construction		Business			Estate		Equity			Construction		Other			Total
Balance, beginning of period	$	5,800		8,791			977		5,841			6,538		2,641			615		399			31,602
Provision for loan losses		2,105		2,461			217		2,274			2,936		850			87		170			11,100
Loan charge-offs		-		(375	)		-		(564	)		-		(100	)		-		(25	)		(1,064	)
Loan recoveries		-		554			-		14			2		-			-		11			581
Net loan recoveries (charge-offs)		-		179			-		(550	)		2		(100	)		-		(14	)		(483	)
Balance, end of period	$	7,905		11,431			1,194		7,565			9,476		3,391			702		555			42,219
Net charge-offs to average loans (annualized)																						0.09	%
Allowance for loan losses to gross   loans																						2.03	%
Allowance for loan losses to   nonperforming loans																						482.43	%

	Nine months ended September 30, 2021
	Commercial												Consumer
	Owner			Non-owner
	occupied			occupied								Real			Home
(dollars in thousands)	RE			RE			Construction			Business		Estate			Equity		Construction			Other			Total
Balance, beginning of period	$	8,145			12,049			1,154		7,845			10,453		3,249			747			507			44,149
Provision for loan losses		(2,299	)		(509	)		(54	)	(2,256	)		(1,894	)	(1,149	)		(22	)		(17	)		(8,200	)
Loan charge-offs		-			(158	)		-		(353	)		-		(139	)		-			(8	)		(658	)
Loan recoveries		94			253			-		214			18		196			-			9			784
Net loan recoveries (charge-offs)		94			95			-		(139	)		18		57			-			1			126
Balance, end of period	$	5,940			11,635			1,100		5,450			8,577		2,157			725			491			36,075
Net charge-offs (recoveries) to average loans (annualized)																								(0.01	%)

	Nine months ended September 30, 2020
	Commercial							Consumer
	Owner		Non-owner
	occupied		occupied					Real	Home
(dollars in thousands)	RE		RE		Construction	Business		Estate	Equity			Construction		Other		Total
Balance, beginning of period	$	2,835	4,304		541	3,692		3,278		1,447			268	277			16,642
Provision for loan losses		5,070	8,081		653	4,562		6,187		1,976			434	337			27,300
Loan charge-offs		-	(1,508	)	-	(735	)	-		(100	)		-	(70	)		(2,413	)
Loan recoveries		-	554		-	46		11		68			-	11			690
Net loan recoveries (charge-offs)		-	(954	)	-	(689	)	11		(32	)		-	(59	)		(1,723	)
Balance, end of period	$	7,905	11,431		1,194	7,565		9,476		3,391			702	555			42,219
Net charge-offs to average loans (annualized)																	0.11	%

Schedule of Allowance for Loan Losses and Recorded Investment in Loans by Impairment

The following table disaggregates the allowance for loan losses and recorded investment in loans by impairment methodology.

	September 30, 2021
	Allowance for loan losses				Recorded investment in loans
(dollars in thousands)	Commercial		Consumer	Total	Commercial	Consumer	Total
Individually evaluated	$	955	210	1,165	12,810	5,111	17,921
Collectively evaluated		23,170	11,740	34,910	1,482,186	888,940	2,371,126
Total	$	24,125	11,950	36,075	1,494,996	894,051	2,389,047

	December 31, 2020
	Allowance for loan losses				Recorded investment in loans
(dollars in thousands)	Commercial		Consumer	Total	Commercial	Consumer	Total
Individually evaluated	$	1,339	370	1,709	6,425	6,537	12,962
Collectively evaluated		27,826	14,614	42,440	1,381,230	748,675	2,129,905
Total	$	29,165	14,984	44,149	1,387,655	755,212	2,142,867

Consumer Loan [Member]

Financing Receivable, Allowance for Credit Loss [Line Items]

Summary of breakdown of outstanding loans by risk category

The tables below provide a breakdown of outstanding consumer loans by risk category.

	September 30, 2021
(dollars in thousands)	Real estate		Home equity		Construction		Other		Total
Pass	$	640,595		149,136		57,419		33,120		880,270
Special mention		3,326		3,162		-		137		6,625
Substandard		4,355		2,751		-		50		7,156
Doubtful		-		-		-		-		-
	$	648,276		155,049		57,419		33,307		894,051

	December 31, 2020
(dollars in thousands)	Real estate		Home equity		Construction		Other		Total
Pass	$	530,515		152,154		40,525		21,290		744,484
Special mention		1,968		1,005		-		91		3,064
Substandard		3,828		3,798		-		38		7,664
Doubtful		-		-		-		-		-
	$	536,311		156,957		40,525		21,419		755,212

Summary of outstanding commercial and consumer loans which include loans on nonaccrual by past due status

The following tables provide past due information for outstanding consumer loans and include loans on nonaccrual status as well as accruing TDRs.

	September 30, 2021
(dollars in thousands)	Real estate		Home equity		Construction		Other		Total
Current	$	647,722		153,505		57,419		33,301		891,947
30-59 days past due		-		1,510		-		-		1,510
60-89 days past due		-		34		-		6		40
Greater than 90 Days		554		-		-		-		554
	$	648,276		155,049		57,419		33,307		894,051

	December 31, 2020
(dollars in thousands)	Real estate		Home equity		Construction		Other		Total
Current	$	534,648		156,657		40,525		21,419		753,249
30-59 days past due		-		-		-		-		-
60-89 days past due		332		-		-		-		332
Greater than 90 Days		1,331		300		-		-		1,631
	$	536,311		156,957		40,525		21,419		755,212

Commercial Loan [Member]

Financing Receivable, Allowance for Credit Loss [Line Items]

Summary of breakdown of outstanding loans by risk category

The tables below provide a breakdown of outstanding commercial loans by risk category.

	September 30, 2021
	Owner		Non-owner
(dollars in thousands)	occupied RE		occupied RE		Construction		Business		Total
Pass	$	469,715		544,427		87,892		301,291		1,403,325
Special mention		333		48,540		-		2,651		51,524
Substandard		566		35,554		-		4,027		40,147
Doubtful		-		-		-		-		-
	$	470,614		628,521		87,892		307,969		1,494,996

	December 31, 2020
	Owner		Non-owner
(dollars in thousands)	occupied RE		occupied RE		Construction		Business		Total
Pass	$	430,291		576,095		61,328		301,838		1,369,552
Special mention		624		587		-		1,703		2,914
Substandard		2,405		8,587		139		4,058		15,189
Doubtful		-		-		-		-		-
	$	433,320		585,269		61,467		307,599		1,387,655

Summary of outstanding commercial and consumer loans which include loans on nonaccrual by past due status

The following tables provide past due information for outstanding commercial loans and include loans on nonaccrual status as well as accruing TDRs.

	September 30, 2021
	Owner		Non-owner
(dollars in thousands)	occupied RE		occupied RE		Construction		Business		Total
Current	$	470,351		621,383		87,892		305,804		1,485,430
30-59 days past due		263		-		-		696		959
60-89 days past due		-		7,138		-		1,469		8,607
Greater than 90 Days		-		-		-		-		-
	$	470,614		628,521		87,892		307,969		1,494,996

	December 31, 2020
	Owner		Non-owner
(dollars in thousands)	occupied RE		occupied RE		Construction		Business		Total
Current	$	432,711		584,565		61,467		307,261		1,386,004
30-59 days past due		403		282		-		35		720
60-89 days past due		-		-		-		266		266
Greater than 90 Days		206		422		-		37		665
	$	433,320		585,269		61,467		307,599		1,387,655