LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2021

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of Loans

	September 30,		December 31,
(in thousands)	2021		2020
Commercial construction	$	152,700	$	117,882
Commercial real estate owner occupied		253,792		219,217
Commercial real estate non-owner occupied		733,353		716,776
Tax exempt		42,448		47,862
Commercial and industrial		336,989		355,684
Residential real estate		917,301		995,216
Home equity		88,002		100,096
Consumer other		9,569		10,152
Total loans		2,534,154		2,562,885
Allowance for credit losses		22,448		19,082
Net loans	$	2,511,706	$	2,543,803

Summary of Unamortized Net Costs and Premiums in Business Activity Loans

	September 30,		December 31,
(in thousands)	2021		2020
Unamortized net loan origination costs	$	4,015	$	5,157
Unamortized net premium on purchased loans		(65)		(85)
Total unamortized net costs and premiums	$	3,950	$	5,072

Schedule of Activity in the Allowance for Loan Losses

The Company’s activity in the allowance for credit losses for the periods ended are as follows:

	Three Months Ended September 30, 2021
	Balance at
	Beginning of								Balance at
(in thousands)	Period		Charge Offs		Recoveries		Provision		End of Period
Commercial construction	$	2,372	$	—	$	—	$	(286)	$	2,086
Commercial real estate owner occupied		2,552		(142)		72		237		2,719
Commercial real estate non-owner occupied		5,604		—		—		(22)		5,582
Tax exempt		91		—		—		(6)		85
Commercial and industrial		5,225		(24)		—		105		5,306
Residential real estate		6,069		(6)		19		(290)		5,792
Home equity		822		(49)		1		30		804
Consumer other		80		(65)		1		58		74
Total	$	22,815	$	(286)	$	93	$	(174)	$	22,448

	Nine Months Ended September 30, 2021
	Balance at
	Beginning of		Impact of ASC								Balance at
(in thousands)	Period		326		Charge Offs		Recoveries		Provision		End of Period
Commercial construction	$	824	$	1,196	$	—	$	18	$	48	$	2,086
Commercial real estate owner occupied		1,783		708		(403)		72		559		2,719
Commercial real estate non-owner occupied		7,864		(2,008)		—		4		(278)		5,582
Tax exempt		58		40		—		—		(13)		85
Commercial and industrial		3,137		2,996		(44)		14		(797)		5,306
Residential real estate		5,010		1,732		(67)		141		(1,024)		5,792
Home equity		285		603		(108)		48		(24)		804
Consumer other		121		(39)		(119)		10		101		74
Total	$	19,082	$	5,228	$	(741)	$	307	$	(1,428)	$	22,448

	Three Months Ended September 30, 2020
	Balance at
	Beginning of								Balance at
(in thousands)	Period		Charge Offs		Recoveries		Provision		End of Period
Commercial construction	$	532	$	—	$	—	$	185	$	717
Commercial real estate owner occupied		1,524		—		—		370		1,894
Commercial real estate non-owner occupied		5,926		(266)		14		783		6,457
Tax exempt		64		—		—		4		68
Commercial and industrial		3,056		(24)		14		236		3,282
Residential real estate		4,991		—		1		86		5,078
Home equity		318		—		—		(4)		314
Consumer other		98		(149)		8		140		97
Total	$	16,509	$	(439)	$	37	$	1,800	$	17,907

	Nine Months Ended September 30, 2020
	Balance at
	Beginning of								Balance at
(in thousands)	Period		Charge Offs		Recoveries		Provision		End of Period
Commercial construction	$	317	$	—	$	—	$	400	$	717
Commercial real estate owner occupied		2,368		—		—		(474)		1,894
Commercial real estate non-owner occupied		4,695		(1,137)		109		2,790		6,457
Tax exempt		67		—		—		1		68
Commercial and industrial		3,262		(360)		25		355		3,282
Residential real estate		4,213		(32)		12		885		5,078
Home equity		320		—		—		(6)		314
Consumer other		111		(341)		13		314		97
Total	$	15,353	$	(1,870)	$	159	$	4,265	$	17,907

Schedule of Loans by Risk Rating

(in thousands)	2021		2020		2019		2018		2017		Prior		Total
Commercial construction
Risk rating:
Pass	$	22,192	$	76,226	$	44,453	$	9,829	$	—	$	—	$	152,700
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Total	$	22,192	$	76,226	$	44,453	$	9,829	$	—	$	—	$	152,700
Commercial real estate owner occupied
Risk rating:
Pass	$	9,937	$	16,003	$	35,366	$	47,026	$	20,038	$	110,663	$	239,033
Special mention		—		—		767		—		—		3,125		3,892
Substandard		—		—		—		248		248		10,030		10,526
Doubtful		—		—		—		172		—		169		341
Total	$	9,937	$	16,003	$	36,133	$	47,446	$	20,286	$	123,987	$	253,792
Commercial real estate non-owner occupied
Risk rating:
Pass	$	101,706	$	147,754	$	90,963	$	40,545	$	147,197	$	186,056	$	714,221
Special mention		—		—		—		—		—		15,612		15,612
Substandard		—		—		—		131		131		3,086		3,348
Doubtful		—		—		—		—		—		172		172
Total	$	101,706	$	147,754	$	90,963	$	40,676	$	147,328	$	204,926	$	733,353
Tax exempt
Risk rating:
Pass	$	1,511	$	604	$	975	$	14,453	$	5,387	$	19,518	$	42,448
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Total	$	1,511	$	604	$	975	$	14,453	$	5,387	$	19,518	$	42,448
Commercial and industrial
Risk rating:
Pass	$	104,179	$	64,303	$	36,010	$	17,635	$	35,407	$	73,972	$	331,506
Special mention		619		222		717		596		202		1,429		3,785
Substandard		98		—		549		14		50		677		1,388
Doubtful		—		—		—		—		122		188		310
Total	$	104,896	$	64,525	$	37,276	$	18,245	$	35,781	$	76,266	$	336,989
(continued)

(in thousands)	2021		2020		2019		2018		2017		Prior		Total
Residential real estate
Performing	$	143,071	$	126,171	$	95,942	$	70,062	$	69,486	$	404,395	$	909,127
Nonperforming		—		—		—		576		183		7,415		8,174
Total	$	143,071	$	126,171	$	95,942	$	70,638	$	69,669	$	411,810	$	917,301
Home equity
Performing	$	8,227	$	10,946	$	9,775	$	7,647	$	6,975	$	43,133	$	86,703
Nonperforming		—		—		—		—		—		1,299		1,299
Total	$	8,227	$	10,946	$	9,775	$	7,647	$	6,975	$	44,432	$	88,002
Consumer other
Performing	$	3,037	$	1,942	$	1,023	$	803	$	329	$	2,429	$	9,563
Nonperforming		—		—		—		—		—		6		6
Total	$	3,037	$	1,942	$	1,023	$	803	$	329	$	2,435	$	9,569
Total Loans	$	394,577	$	444,171	$	316,540	$	209,737	$	285,755	$	883,374	$	2,534,154

The following table summarizes credit risk exposure indicators by portfolio segment, under the incurred loss methodology, as of the period indicated:

	December 31, 2020
	Commercial		Commercial		Residential
	Real Estate		and Industrial		Real Estate		Consumer		Total
Grade:
Pass	$	1,053,773	$	422,016	$	—	$	—	$	1,475,789
Performing		—		—		914,749		112,190		1,026,939
Special mention		6,075		2,771		—		—		8,846
Substandard		22,267		15,180		—		—		37,447
Doubtful		2,265		1,100		—		—		3,365
Loss		1		2		—		—		3
Non-performing		—		—		9,142		1,354		10,496
Total	$	1,084,381	$	441,069	$	923,891	$	113,544	$	2,562,885

Summary of Past Due Loans

	September 30, 2021
(in thousands)	30-59		60-89		90+		Total Past Due		Current		Total Loans
Commercial construction	$	—	$	—	$	—	$	—	$	152,700	$	152,700
Commercial real estate owner occupied		—		10		627		637		253,155		253,792
Commercial real estate non-owner occupied		314		—		117		431		732,922		733,353
Tax exempt		—		—		—		—		42,448		42,448
Commercial and industrial		44		35		313		392		336,597		336,989
Residential real estate		414		1,007		2,796		4,217		913,084		917,301
Home equity		344		95		62		501		87,501		88,002
Consumer other		32		2		—		34		9,535		9,569
Total	$	1,148	$	1,149	$	3,915	$	6,212	$	2,527,942	$	2,534,154

	December 31, 2020
(in thousands)	30-59		60-89		90+		Total Past Due		Current		Total Loans
Commercial construction	$	74	$	—	$	1	$	75	$	117,807	$	117,882
Commercial real estate owner occupied		1,309		464		438		2,211		217,006		219,217
Commercial real estate non-owner occupied		503		674		624		1,801		714,975		716,776
Tax exempt		—		—		—		—		47,862		47,862
Commercial and industrial		161		—		193		354		355,330		355,684
Residential real estate		9,178		2,511		3,200		14,889		980,327		995,216
Home equity		1,062		614		375		2,051		98,045		100,096
Consumer other		20		—		2		22		10,130		10,152
Total	$	12,307	$	4,263	$	4,833	$	21,403	$	2,541,482	$	2,562,885

Summary of Non-Accrual Loans

	September 30, 2021
			Nonaccrual With No		90+ Days Past
(in thousands)	Nonaccrual		Related Allowance		Due and Accruing
Commercial construction	$	—	$	—	$	—
Commercial real estate owner occupied		1,184		808		366
Commercial real estate non-owner occupied		770		314		—
Tax exempt		—		—		—
Commercial and industrial		775		629		149
Residential real estate		8,174		3,217		105
Home equity		1,298		316		—
Consumer other		6		—		—
Total	$	12,207	$	5,284	$	620

	December 31, 2020
			Nonaccrual With No		90+ Days Past
(in thousands)	Nonaccrual		Related Allowance		Due and Accruing
Commercial construction	$	258	$	—	$	—
Commercial real estate owner occupied		3,038		929		—
Commercial real estate non-owner occupied		383		118		—
Tax exempt		—		—		—
Commercial and industrial		1,223		1,065		—
Residential real estate		5,883		4,948		—
Home equity		1,345		1,346		267
Consumer other		58		58		—
Total	$	12,188	$	8,464	$	267

Schedule of amortized cost basis of collateral-dependent loans

	September 30, 2021				December 31, 2020
(in thousands)	Real Estate		Other		Real Estate		Other
Commercial construction	$	—	$	—	$	259	$	—
Commercial real estate owner occupied		1,184		—		3,441		—
Commercial real estate non-owner occupied		770		—		383		—
Tax exempt		—		—		—		—
Commercial and industrial		436		339		625		607
Residential real estate		8,174		—		7,432		—
Home equity		1,298		—		1,493		—
Consumer other		6		—		60		—
Total	$	11,868	$	339	$	13,693	$	607

Summary of Impaired Loans

	December 31, 2020
	Recorded		Unpaid Principal		Related		Average Recorded		Interest
(in thousands)	Investment		Balance		Allowance		Investment		Income Recognized
With no related allowance:
Construction and land development	$	—	$	—	$	—	$	—	$	—
Other commercial real estate		2,001		2,047		—		1,610		—
Commercial		1,095		1,254		—		1,140		4
Agricultural		361		150		—		114		2
Tax exempt loans		—		—		—		—		—
Residential real estate		2,745		3,165		—		1,077		17
Home equity		—		—		—		—		—
Other consumer		—		—		—		—		—
With an allowance recorded:
Construction and land development		258		258		205		203		—
Other commercial real estate		1,963		2,108		1,038		1,973		17
Commercial		282		289		164		73		—
Agricultural		—		—		—		—		—
Tax exempt loans		—		—		—		—		—
Residential real estate		887		944		106		1,865		37
Home equity		13		13		—		12		1
Other consumer		—		—		—		—		—
Total
Commercial real estate		4,222		4,413		1,243		3,786		17
Commercial and industrial		1,738		1,693		164		1,327		6
Residential real estate		3,632		4,109		106		2,942		54
Consumer		13		13		—		12		1
Total impaired loans	$	9,605	$	10,228	$	1,513	$	8,067	$	78

Schedule of Recorded Investment and Number of Modifications for TDRs

	Three Months Ended September 30, 2020
		Pre-Modification		Post-Modification
	Number of	Outstanding		Outstanding
(in thousands)	Modifications	Balance		Balance		Reserve
Commercial and industrial	1		86		86		—
Total	1	$	86	$	86	$	—

	Nine Months Ended September 30, 2020
		Pre-Modification		Post-Modification
	Number of	Outstanding		Outstanding
(in thousands)	Modifications	Balance		Balance		Reserve
Commercial construction	—	$	—	$	—	$	—
Commercial real estate owner occupied	—		—		—		—
Commercial real estate non-owner occupied	1		54		247		—
Tax exempt	—		—		—		—
Commercial and industrial	4		127		248		—
Residential real estate	—		—		—		—
Home equity	1		26		24		—
Consumer other	1		9		9		—
Total	7	$	216	$	528	$	—

Summary of Loan Concessions

	September 30, 2021			September 30, 2020
		Post-Modification			Post-Modification
	Number of	Outstanding		Number of	Outstanding
(in thousands)	Modifications	Balance		Modifications	Balance
Interest rate, forbearance and maturity concession	—	$	—	4	$	409
Forbearance and interest only payments	—		—	1		24
Maturity concession	—		—	2		95
Total	—	$	—	7	$	528

Unfunded Loan Commitment

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of Activity in the Allowance for Loan Losses

(in thousands)	Three Months Ended September 30, 2021		Nine Months Ended September 30, 2021
Begininng Balance	$	1,921	$	359
Impact of CECL adoption		—		1,616
Provision for credit losses		280		226
Ending Balance	$	2,201	$	2,201

(in thousands)	Three Months Ended September 30, 2020		Nine Months Ended September 30, 2020
Begininng Balance	$	319	$	314
Provision for credit losses		2		7
Ending Balance	$	321	$	321