Loans and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Schedule of composition of our loan portfolio

	September 30, 2023						December 31, 2022
(dollars in thousands)	Amount			%  of Total			Amount			%  of Total
Commercial
Owner occupied RE	$	637,038			17.9	%	$	612,901			18.7	%
Non-owner occupied RE		937,749			26.4	%		862,579			26.3	%
Construction		119,629			3.4	%		109,726			3.4	%
Business		500,253			14.1	%		468,112			14.3	%
Total commercial loans		2,194,669			61.8	%		2,053,318			62.7	%
Consumer
Real estate		1,074,679			30.2	%		931,278			28.4	%
Home equity		180,856			5.1	%		179,300			5.5	%
Construction		54,210			1.5	%		80,415			2.5	%
Other		49,218			1.4	%		29,052			0.9	%
Total consumer loans		1,358,963			38.2	%		1,220,045			37.3	%
Total gross loans, net of deferred fees		3,553,632			100.0	%		3,273,363			100.0	%
Less—allowance for credit losses		(41,131	)					(38,639	)
Total loans, net	$	3,512,501					$	3,234,724

Schedule of loan maturity distribution by type and related interest rate

			September 30, 2023
(dollars in thousands)	One year or less		After one but within five years		After five but within fifteen years		After fifteen years		Total
Commercial
Owner occupied RE	$	13,679		177,138		404,693		41,528		637,038
Non-owner occupied RE		66,746		501,700		343,953		25,350		937,749
Construction		23,899		44,452		51,278		-		119,629
Business		106,126		198,150		191,559		4,418		500,253
Total commercial loans		210,450		921,440		991,483		71,296		2,194,669
Consumer
Real estate		8,646		50,898		304,890		710,245		1,074,679
Home equity		1,996		24,720		149,252		4,888		180,856
Construction		-		259		31,796		22,155		54,210
Other		12,945		33,082		2,376		815		49,218
Total consumer loans		23,587		108,959		488,314		738,103		1,358,963
Total gross loans, net of deferred fees	$	234,037		1,030,399		1,479,797		809,399		3,553,632

					December 31, 2022
(dollars in thousands)	One year or less		After one but within five years		After five but within fifteen years		After fifteen years		Total
Commercial
Owner occupied RE	$	10,574		133,017		420,881		48,429		612,901
Non-owner occupied RE		44,570		419,976		371,208		26,825		862,579
Construction		5,509		36,537		61,009		6,671		109,726
Business		96,157		194,489		173,259		4,207		468,112
Total commercial loans		156,810		784,019		1,026,357		86,132		2,053,318
Consumer
Real estate		12,137		38,948		260,005		620,188		931,278
Home equity		1,336		20,933		151,696		5,335		179,300
Construction		665		182		23,788		55,780		80,415
Other		3,926		21,890		2,458		778		29,052
Total consumer loans		18,064		81,953		437,947		682,081		1,220,045
Total gross loans, net of deferred fees	$	174,874		865,972		1,464,304		768,213		3,273,363

Schedule of composition of gross loans by rate type

	September 30, 2023				December 31, 2022
	Interest Rate						Interest Rate
(dollars in thousands)	Fixed		Floating or Adjustable		Fixed		Floating or Adjustable
Commercial
Owner occupied RE	$	614,563		8,796		598,513		3,814
Non-owner occupied RE		787,479		83,524		742,763		75,246
Construction		65,517		30,213		90,246		13,971
Business		300,464		93,663		298,866		73,089
Total commercial loans		1,768,023		216,196		1,730,388		166,120
Consumer
Real estate		1,066,033		-		919,130		11
Home equity		12,403		166,457		14,173		163,791
Construction		54,210		-		79,750		-
Other		11,916		24,357		19,113		6,013
Total consumer loans		1,144,562		190,814		1,032,166		169,815
Total gross loans, net of deferred fees	$	2,912,585		407,010		2,762,554		335,935

Schedule of breakdown of outstanding loans by risk category

																September 30, 2023
(dollars in thousands)	2023		2022			2021		2020			2019		Prior			Revolving			Revolving Converted to Term		Total
Commercial
Owner occupied RE
Pass	$	38,310		178,722			143,057		67,509			62,216		112,528			-			167		602,509
Watch		-		3,482			464		16,074			3,551		6,821			-			-		30,392
Special Mention		-		186			-		-			-		3,074			-			-		3,260
Substandard		-		-			-		-			-		877			-			-		877
Total Owner occupied RE		38,310		182,390			143,521		83,583			65,767		123,300			-			167		637,038
Non-owner occupied RE
Pass		79,567		302,942			169,567		109,566			59,595		173,400			257			-		894,894
Watch		772		828			10,221		-			5,393		6,610			-			-		23,824
Special Mention		-		-			199		-			8,267		878			-			-		9,344
Substandard		-		-			-		-			8,073		1,614			-			-		9,687
Total Non-owner occupied RE		80,339		303,770			179,987		109,566			81,328		182,502			257			-		937,749
Construction
Pass		13,921		72,528			22,179		9,897			-		-			-			-		118,525
Watch		-		1,104			-		-			-		-			-			-		1,104
Special Mention		-		-			-		-			-		-			-			-		-
Substandard		-		-			-		-			-		-			-			-		-
Total Construction		13,921		73,632			22,179		9,897			-		-			-			-		119,629
Business
Pass		41,808		136,635			50,098		19,637			18,214		53,775			144,671			1,099		465,937
Watch		282		14,431			1,955		1,114			913		3,958			6,697			-		29,350
Special Mention		101		977			77		793			211		234			-			98		2,491
Substandard		-		490			164		-			153		1,199			447			22		2,475
Total Business		42,191		152,533			52,294		21,544			19,491		59,166			151,815			1,219		500,253
Total Commercial loans		174,761		712,325			397,981		224,590			166,586		364,968			152,072			1,386		2,194,669
Consumer
Real estate
Pass		126,174		273,593			283,538		178,459			66,468		108,094			-			-		1,036,326
Watch		490		5,684			7,877		3,941			2,058		4,098			-			-		24,148
Special Mention		-		2,319			1,663		1,301			2,407		2,799			-			-		10,489
Substandard		-		186			637		820			323		1,750			-			-		3,716
Total Real estate		126,664		281,782			293,715		184,521			71,256		116,741			-			-		1,074,679
Home equity
Pass		-		-			-		-			-		-			168,399			-		168,399
Watch		-		-			-		-			-		-			6,870			-		6,870
Special Mention		-		-			-		-			-		-			4,150			-		4,150
Substandard		-		-			-		-			-		-			1,437			-		1,437
Total Home equity		-		-			-		-			-		-			180,856			-		180,856
Construction
Pass		9,798		35,606			8,806		-			-		-			-			-		54,210
Watch		-		-			-		-			-		-			-			-		-
Special Mention		-		-			-		-			-		-			-			-		-
Substandard		-		-			-		-			-		-			-			-		-
Total Construction		9,798		35,606			8,806		-			-		-			-			-		54,210
Other
Pass		923		2,643			2,578		1,505			846		2,726			36,718			-		47,939
Watch		44		33			352		4			1		167			94			-		695
Special Mention		-		334			-		-			27		84			51			-		496
Substandard		-		-			80		-			1		-			7			-		88
Total Other		967		3,010			3,010		1,509			875		2,977			36,870			-		49,218
Total Consumer loans		137,429		320,398			305,531		186,030			72,131		119,718			217,726			-		1,358,963
Total loans	$	312,190		1,032,723			703,512		410,620			238,717		484,686			369,798			1,386		3,553,632
Current period gross write-offs		-		(200	)		-		(28	)		-		(10	)		(405	)		-		(643	)

The following table presents loan balances classified by credit quality indicators by year of origination as of December 31, 2022.

	December 31, 2022
(dollars in thousands)	2022		2021			2020		2019			2018		Prior			Revolving			Revolving Converted to Term		Total
Commercial
Owner occupied RE
Pass	$	169,083		122,654			85,867		66,299			36,718		93,915			-			-		574,536
Watch		14,648		479			9,339		3,658			-		6,792			-			-		34,916
Special Mention		200		-			-		-			-		2,960			-			-		3,160
Substandard		-		-			-		-			289		-			-			-		289
Total Owner occupied RE		183,931		123,133			95,206		69,957			37,007		103,667			-			-		612,901
Non-owner occupied RE
Pass		281,890		169,599			113,264		59,550			79,722		106,967			604			137		811,733
Watch		1,061		9,491			-		10,683			1,408		11,660			-			-		34,303
Special Mention		-		202			-		6,087			-		930			-			-		7,219
Substandard		-		134			-		7,992			327		871			-			-		9,324
Total Non-owner occupied RE		282,951		179,426			113,264		84,312			81,457		120,428			604			137		862,579
Construction
Pass		48,420		55,129			4,811		247			-		-			-			-		108,607
Watch		1,119		-			-		-			-		-			-			-		1,119
Special Mention		-		-			-		-			-		-			-			-		-
Substandard		-		-			-		-			-		-			-			-		-
Total Construction		49,539		55,129			4,811		247			-		-			-			-		109,726
Business
Pass		136,489		57,804			29,864		21,808			35,249		28,914			136,337			709		447,174
Watch		3,186		2,058			1,318		1,282			179		3,074			3,783			439		15,319
Special Mention		1,137		260			386		210			-		252			115			642		3,002
Substandard		498		-			188		233			315		911			472			-		2,617
Total Business		141,310		60,122			31,756		23,533			35,743		33,151			140,707			1,790		468,112
Total Commercial loans		657,731		417,810			245,037		178,049			154,207		257,246			141,311			1,927		2,053,318
Consumer
Real estate
Pass		243,589		269,565			189,075		72,499			39,042		76,172			-			-		889,942
Watch		6,196		8,256			3,847		2,278			494		3,671			-			-		24,742
Special Mention		3,114		1,938			2,644		2,258			955		2,639			-			-		13,548
Substandard		-		648			227		341			408		1,422			-			-		3,046
Total Real estate		252,899		280,407			195,793		77,376			40,899		83,904			-			-		931,278
Home equity
Pass		-		-			-		-			-		-			165,847			-		165,847
Watch		-		-			-		-			-		-			7,226			-		7,226
Special Mention		-		-			-		-			-		-			4,055			-		4,055
Substandard		-		-			-		-			-		-			2,172			-		2,172
Total Home equity		-		-			-		-			-		-			179,300			-		179,300
Construction
Pass		41,138		34,039			4,923		-			-		-			-			-		80,100
Watch		-		-			-		-			-		-			-			-		-
Special Mention		-		-			-		315			-		-			-			-		315
Substandard		-		-			-		-			-		-			-			-		-
Total Construction		41,138		34,039			4,923		315			-		-			-			-		80,415
Other
Pass		3,894		3,038			1,702		1,534			341		3,015			14,465			-		27,989
Watch		46		367			15		5			16		175			93			-		717
Special Mention		94		-			-		44			75		23			96			-		332
Substandard		-		-			-		5			-		-			9			-		14
Total Other		4,034		3,405			1,717		1,588			432		3,213			14,663			-		29,052
Total Consumer loans		298,071		317,851			202,433		79,279			41,331		87,117			193,963			-		1,220,045
Total loans	$	955,802		735,661			447,470		257,328			195,538		344,363			335,274			1,927		3,273,363
Current period gross write-offs		-		(91	)		-		(23	)		-		(32	)		(339	)		-		(485	)

Schedule of loan balances by payment status

	September 30, 2023
(dollars in thousands)	Accruing 30 -59 days past due		Accruing 60-89 days past due		Accruing 90 days or more past due		Nonaccrual loans		Accruing current		Total
Commercial
Owner occupied RE	$	-		-		-		-		637,038		637,038
Non-owner occupied RE		440		-		-		1,615		935,694		937,749
Construction		-		-		-		-		119,629		119,629
Business		347		27		-		404		499,475		500,253
Consumer
Real estate		1,210		-		-		1,228		1,072,241		1,074,679
Home equity		226		182		-		1,068		179,380		180,856
Construction		-		-		-		-		54,210		54,210
Other		-		-		-		-		49,218		49,218
Total loans	$	2,223		209		-		4,315		3,546,885		3,553,632
Total loans over 90 days past due		-		-		-		-		-		1,572
	December 31, 2022
(dollars in thousands)	Accruing 30- 59 days past due		Accruing 60-89 days past due		Accruing 90 days or more past due		Nonaccrual loans		Accruing current		Total
Commercial
Owner occupied RE	$	-		-		-		-		612,901		612,901
Non-owner occupied RE		119		757		-		247		861,456		862,579
Construction		-		-		-		-		109,726		109,726
Business		24		1		-		182		467,905		468,112
Consumer
Real estate		330		-		-		1,099		929,849		931,278
Home equity		50		-		-		1,099		178,151		179,300
Construction		-		-		-		-		80,415		80,415
Other		88		-		-		-		28,964		29,052
Total loans	$	611		758		-		2,627		3,269,367		3,273,363
Total loans over 90 days past due		-		-		-		-		-		402

Schedule nonaccrual loans by major categories

	September 30, 2023								December 31, 2022
	Nonaccrual		Nonaccrual				Nonaccrual		Nonaccrual
	loans		loans		Total		loans		loans		Total
	with no		with an		nonaccrual		with no		with an		nonaccrual
(dollars in thousands)	allowance		allowance		loans		allowance		allowance		loans
Commercial
Owner occupied RE		-		-		-		-		-		-
Non-owner occupied RE		379		1,236		1,615		114		133		247
Construction		-		-		-		-		-		-
Business		170		234		404		-		182		182
Total commercial		549		1,470		2,019		114		315		429
Consumer
Real estate		227		1,001		1,228		-		1,099		1,099
Home equity		181		887		1,068		194		905		1,099
Construction		-		-		-		-		-		-
Other		-		-		-		-		-		-
Total consumer		408		1,888		2,296		194		2,004		2,198
Total nonaccrual loans		957		3,358		4,315		308		2,319		2,627

Schedule of nonperforming assets, including nonaccruing TDRs

(dollars in thousands)	September 30, 2023			December 31, 2022
Nonaccrual loans	$	4,315			2,627
Other real estate owned		-			-
Total nonperforming assets	$	4,315			2,627
Nonperforming assets as a percentage of:
Total assets		0.11	%		0.07	%
Gross loans		0.12	%		0.08	%
Total loans over 90 days past due	$	1,572			402
Loans over 90 days past due and still accruing		-			-
Accruing troubled debt restructurings		-			4,503

Schedule of amortized cost basis of loans

			Term Extension
(dollars in thousands)	Amortized Cost Basis	% of Total Loan Type	Financial Effect
Commercial Business	$           329	0.07%	Added a 1-year term to both of the loans modified. One loan was granted an extended amortization due to the inability to pay on a 3-year amortization. The other loan was given an interest only period due to the ability to pay only interest to get the loan renewed.

Schedule of activity related to the allowance for credit losses

									Three months ended September 30, 2023
	Commercial											Consumer
(dollars in thousands)	Owner occupied RE		Non- owner occupied RE			Construction			Business			Real Estate		Home Equity			Construction			Other			Total
Balance, beginning of period	$	5,896		11,584			1,331			8,152			10,395		2,521			684			542			41,105
Provision for credit losses		300		(247	)		(34	)		(148	)		191		(20	)		(102	)		(40	)		(100	)
Loan charge-offs		-		(1	)		-			(42	)		-		-			-			-			(43	)
Loan recoveries		-		154			-			13			-		2			-			-			169
Net loan recoveries (charge-offs)		-		153			-			(29	)		-		2			-			-			126
Balance, end of period	$	6,196		11,490			1,297			7,975			10,586		2,503			582			502			41,131
Net recoveries to average loans (annualized)																								(0.01	)%
Allowance for credit losses to gross loans																								1.16	%
Allowance for credit losses to nonperforming loans																								953.25	%

									Three months ended September 30, 2022
	Commercial										Consumer
(dollars in thousands)	Owner occupied RE		Non- owner occupied RE			Construction			Business		Real Estate		Home Equity		Construction		Other		Total
Balance, beginning of period	$	4,829		10,010			1,060			6,717		7,992		2,442		851		291		34,192
Provision for credit losses		476		(1,595	)		(82	)		875		782		3		41		25		525
Loan charge-offs		-		-			-			-		-		-		-		-		-
Loan recoveries		-		1,540			-			51		-		8		-		1		1,600
Net loan recoveries (charge-offs)		-		1,540			-			51		-		8		-		1		1,600
Balance, end of period	$	5,305		9,955			978			7,643		8,774		2,453		892		317		36,317
Net recoveries to average loans (annualized)																				(0.22	)%
Allowance for credit losses to gross loans																				1.20	%
Allowance for credit losses to nonperforming loans																				1,388.87	%

								Nine months ended September 30, 2023
	Commercial										Consumer
(dollars in thousands)	Owner occupied RE		Non- owner occupied RE			Construction		Business			Real Estate		Home Equity			Construction			Other			Total
Balance, beginning of period	$	5,867		10,376			1,292		7,861			9,487		2,551			893			312			38,639
Provision for credit losses		329		1,138			5		120			1,099		278			(311	)		192			2,850
Loan charge-offs		-		(209	)		-		(43	)		-		(389	)		-			(2	)		(643	)
Loan recoveries		-		185			-		37			-		63			-			-			285
Net loan recoveries (charge-offs)		-		(24	)		-		(6	)		-		(326	)		-			(2	)		(358	)
Balance, end of period	$	6,196		11,490			1,297		7,975			10,586		2,503			582			502			41,131
Net charge-offs to average loans (annualized)																							0.01	%
Allowance for credit losses to gross loans																							1.16	%
Allowance for credit losses to nonperforming loans																							953.25	%

									Nine months ended September 30, 2022
	Commercial											Consumer
(dollars in thousands)	Owner occupied RE			Non- owner occupied RE			Construction		Business			Real Estate			Home Equity			Construction		Other			Total
Balance, beginning of period	$	4,700			10,518			625		4,887			7,083			1,697			578		320			30,408
Adjustment for CECL		(313	)		333			154		1,057			(294	)		438			130		(5	)		1,500
Provision for credit losses		918			(2,436	)		199		1,558			1,985			575			184		92			3,075
Loan charge-offs		-			-			-		(55	)		-			(339	)		-		(91	)		(485	)
Loan recoveries		-			1,540			-		196			-			82			-		1			1,819
Net loan recoveries (charge-offs)		-			1,540			-		141			-			(257	)		-		(90	)		1,334
Balance, end of period	$	5,305			9,955			978		7,643			8,774			2,453			892		317			36,317
Net recoveries to average loans (annualized)																								(0.06	)%
Allowance for credit losses to gross loans																								1.20	%
Allowance for credit losses to nonperforming loans																								1,388.87	%

Schedule of analysis of collateral-dependent loans of the company

					September 30, 2023
	Real		Business
(dollars in thousands)	estate		assets		Other		Total
Commercial
Owner occupied RE	$	-		-		-		-
Non-owner occupied RE		908		-		-		908
Construction		-		-		-		-
Business		244		-		-		244
Total commercial		1,152		-		-		1,152
Consumer
Real estate		386		-		-		386
Home equity		182		-		-		182
Construction		-		-		-		-
Other		-		-		-		-
Total consumer		568		-		-		568
Total	$	1,720		-		-		1,720

					December 31, 2022
	Real		Business
(dollars in thousands)	estate		assets		Other		Total
Commercial
Owner occupied RE	$	-		-		-		-
Non-owner occupied RE		114		-		-		114
Construction		-		-		-		-
Business		30		-		-		30
Total commercial		144		-		-		144
Consumer
Real estate		207		-		-		207
Home equity		194		-		-		194
Construction		-		-		-		-
Other		-		-		-		-
Total consumer		401		-		-		401
Total	$	545		-		-		545

Schedule of allowance for credit losses for unfunded loan commitments

	Three months ended			Three months ended
(dollars in thousands)	September 30, 2023			September 30, 2022
Balance, beginning of period	$	2,565			2,330
Adjustment for adoption of CECL		-			-
Provision for (reversal of) credit losses		(400	)		425
Balance, end of period	$	2,165			2,755
Unfunded Loan Commitments	$	780,581			840,912
Reserve for Unfunded Commitments to Unfunded Loan Commitments		0.28	%		0.33	%

	Nine months ended			Nine months ended
(dollars in thousands)	September 30, 2023			September 30, 2022
Balance, beginning of period	$	2,780			-
Adjustment for adoption of CECL		-			2,000
Provision for (reversal of) credit losses		(615	)		755
Balance, end of period	$	2,165			2,755
Unfunded Loan Commitments	$	780,581			840,912
Reserve for Unfunded Commitments to Unfunded Loan Commitments		0.28	%		0.33	%