LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2022

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

Schedule of Loans

	September 30,		December 31,
(in thousands)	2022		2021
Commercial construction	$	97,156	$	56,263
Commercial real estate owner occupied		256,475		257,122
Commercial real estate non-owner occupied		1,081,924		887,092
Tax exempt		41,622		41,280
Commercial and industrial		319,645		307,112
Residential real estate		953,113		888,263
Home equity		92,296		86,657
Consumer other		8,133		8,121
Total loans		2,850,364		2,531,910
Allowance for credit losses		25,018		22,718
Net loans	$	2,825,346	$	2,509,192

Summary of Unamortized Net Costs and Premiums

	September 30,		December 31,
(in thousands)	2022		2021
Net unamortized loan origination costs	$	3,367	$	3,014
Net unamortized fair value discount on acquired loans		(3,898)		(4,758)
Total	$	(531)	$	(1,744)

Schedule of Activity in the Allowance for Credit Losses

	At or for the Three Months Ended September 30, 2022
	Balance at
	Beginning of								Balance at
(in thousands)	Period		Charge Offs		Recoveries		Provision		End of Period
Commercial construction	$	1,010	$	—	$	—	$	213	$	1,223
Commercial real estate owner occupied		2,722		—		7		132		2,861
Commercial real estate non-owner occupied		7,361		—		—		610		7,971
Tax exempt		105		—		—		(11)		94
Commercial and industrial		4,820		(8)		20		290		5,122
Residential real estate		6,806		(11)		6		85		6,886
Home equity		865		—		2		(76)		791
Consumer other		67		(66)		6		63		70
Total	$	23,756	$	(85)	$	41	$	1,306	$	25,018

	At or for the Nine Months Ended September 30, 2022
	Balance at
	Beginning of								Balance at
(in thousands)	Period		Charge Offs		Recoveries		Provision		End of Period
Commercial construction	$	2,111	$	—	$	—	$	(888)	$	1,223
Commercial real estate owner occupied		2,751		—		120		(10)		2,861
Commercial real estate non-owner occupied		5,650		—		—		2,321		7,971
Tax exempt		86		—		—		8		94
Commercial and industrial		5,369		(14)		56		(289)		5,122
Residential real estate		5,862		(26)		103		947		6,886
Home equity		814		(6)		22		(39)		791
Consumer other		75		(181)		9		167		70
Total	$	22,718	$	(227)	$	310	$	2,217	$	25,018

	At or for the 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

	At or for the 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

Schedule of Loans by Risk Rating

(in thousands)	2022		2021		2020		2019		2018		Prior		Total
Commercial construction
Risk rating:
Pass	$	34,032	$	32,179	$	5,928	$	1,011	$	973	$	—	$	74,123
Special mention		—		—		23,033		—		—		—		23,033
Substandard		—		—		—		—		—		—		—
Total	$	34,032	$	32,179	$	28,961	$	1,011	$	973	$	—	$	97,156
Commercial real estate owner occupied
Risk rating:
Pass	$	20,248	$	12,973	$	23,785	$	31,795	$	47,090	$	110,306	$	246,197
Special mention		—		—		245		672		1,145		1,711		3,773
Substandard		—		—		—		—		931		5,276		6,207
Doubtful		—		—		—		—		151		147		298
Total	$	20,248	$	12,973	$	24,030	$	32,467	$	49,317	$	117,440	$	256,475
Commercial real estate non-owner occupied
Risk rating:
Pass	$	283,316	$	249,574	$	146,764	$	89,252	$	35,671	$	259,250	$	1,063,827
Special mention		—		—		—		139		918		14,665		15,722
Substandard		—		—		—		173		—		2,048		2,221
Doubtful		—		—		—		—		—		154		154
Total	$	283,316	$	249,574	$	146,764	$	89,564	$	36,589	$	276,117	$	1,081,924
Tax exempt
Risk rating:
Pass	$	6,944	$	1,044	$	256	$	778	$	13,276	$	19,324	$	41,622
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Total	$	6,944	$	1,044	$	256	$	778	$	13,276	$	19,324	$	41,622
Commercial and industrial
Risk rating:
Pass	$	56,222	$	70,975	$	60,338	$	29,867	$	11,053	$	84,792	$	313,247
Special mention		1,497		—		155		1,083		516		2,432		5,683
Substandard		—		55		12		70		—		514		651
Doubtful		—		—		—		—		—		64		64
Total	$	57,719	$	71,030	$	60,505	$	31,020	$	11,569	$	87,802	$	319,645
Residential real estate
Performing	$	170,291	$	178,875	$	113,573	$	71,869	$	51,588	$	361,823	$	948,019
Nonperforming		—		48		—		50		643		4,353		5,094
Total	$	170,291	$	178,923	$	113,573	$	71,919	$	52,231	$	366,176	$	953,113
Home equity
Performing	$	11,839	$	12,152	$	8,965	$	7,796	$	7,326	$	43,173	$	91,251
Nonperforming		—		—		—		—		—		1,045		1,045
Total	$	11,839	$	12,152	$	8,965	$	7,796	$	7,326	$	44,218	$	92,296
Consumer other
Performing	$	3,833	$	1,596	$	1,029	$	362	$	328	$	980	$	8,128
Nonperforming		—		—		5		—		—		—		5
Total	$	3,833	$	1,596	$	1,034	$	362	$	328	$	980	$	8,133
Total Loans	$	588,222	$	559,471	$	384,088	$	234,917	$	171,609	$	912,057	$	2,850,364

The following table presents our loans by year of origination, loan segmentation and risk indicator as of December 31, 2021:

(in thousands)	2021		2020		2019		2018		2017		Prior		Total
Commercial construction
Risk rating:
Pass	$	22,866	$	4,787	$	19,211	$	9,399	$	—	$	—	$	56,263
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Total	$	22,866	$	4,787	$	19,211	$	9,399	$	—	$	—	$	56,263
Commercial real estate owner occupied
Risk rating:
Pass	$	12,940	$	25,240	$	34,782	$	49,136	$	19,292	$	103,144	$	244,534
Special mention		—		—		760		—		—		2,659		3,419
Substandard		—		—		1		853		247		7,737		8,838
Doubtful		—		—		—		167		—		164		331
Total	$	12,940	$	25,240	$	35,543	$	50,156	$	19,539	$	113,704	$	257,122
Commercial real estate non-owner occupied
Risk rating:
Pass	$	235,646	$	172,785	$	119,326	$	39,663	$	136,120	$	165,329	$	868,869
Special mention		—		—		174		—		—		14,789		14,963
Substandard		—		—		—		—		—		3,097		3,097
Doubtful		—		—		—		—		—		163		163
Total	$	235,646	$	172,785	$	119,500	$	39,663	$	136,120	$	183,378	$	887,092
Tax exempt
Risk rating:
Pass	$	1,249	$	299	$	968	$	14,408	$	5,329	$	19,027	$	41,280
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Total	$	1,249	$	299	$	968	$	14,408	$	5,329	$	19,027	$	41,280
Commercial and industrial
Risk rating:
Pass	$	77,608	$	80,569	$	33,405	$	16,457	$	33,413	$	61,594	$	303,046
Special mention		—		—		584		468		172		1,396		2,620
Substandard		58		3		512		—		48		578		1,199
Doubtful		—		—		—		—		92		155		247
Total	$	77,666	$	80,572	$	34,501	$	16,925	$	33,725	$	63,723	$	307,112
Residential real estate
Performing	$	191,466	$	120,495	$	83,044	$	62,299	$	59,642	$	364,482	$	881,428
Nonperforming		—		—		—		286		178		6,371		6,835
Total	$	191,466	$	120,495	$	83,044	$	62,585	$	59,820	$	370,853	$	888,263
Home equity
Performing	$	12,770	$	10,461	$	9,005	$	7,855	$	6,474	$	38,823	$	85,388
Nonperforming		—		—		—		—		—		1,269		1,269
Total	$	12,770	$	10,461	$	9,005	$	7,855	$	6,474	$	40,092	$	86,657
Consumer other
Performing	$	2,525	$	1,659	$	792	$	669	$	92	$	2,379	$	8,116
Nonperforming		—		—		—		—		—		5		5
Total	$	2,525	$	1,659	$	792	$	669	$	92	$	2,384	$	8,121
Total Loans	$	557,128	$	416,298	$	302,564	$	201,660	$	261,099	$	793,161	$	2,531,910

Summary of Past Due Loans

	September 30, 2022
(in thousands)	30-59		60-89		90+		Total Past Due		Current		Total Loans
Commercial construction	$	—	$	—	$	—	$	—	$	97,156	$	97,156
Commercial real estate owner occupied		84		—		—		84		256,391		256,475
Commercial real estate non-owner occupied		298		—		173		471		1,081,453		1,081,924
Tax exempt		—		—		—		—		41,622		41,622
Commercial and industrial		200		100		12		312		319,333		319,645
Residential real estate		565		928		1,882		3,375		949,738		953,113
Home equity		269		236		204		709		91,587		92,296
Consumer other		11		4		—		15		8,118		8,133
Total	$	1,427	$	1,268	$	2,271	$	4,966	$	2,845,398	$	2,850,364

	December 31, 2021
(in thousands)	30-59		60-89		90+		Total Past Due		Current		Total Loans
Commercial construction	$	—	$	—	$	—	$	—	$	56,263	$	56,263
Commercial real estate owner occupied		1,190		7		1		1,198		255,924		257,122
Commercial real estate non-owner occupied		—		—		—		—		887,092		887,092
Tax exempt		—		—		—		—		41,280		41,280
Commercial and industrial		31		318		185		534		306,578		307,112
Residential real estate		5,010		1,238		1,416		7,664		880,599		888,263
Home equity		699		149		101		949		85,708		86,657
Consumer other		29		—		2		31		8,090		8,121
Total	$	6,959	$	1,712	$	1,705	$	10,376	$	2,521,534	$	2,531,910

Summary of Non-Accrual Loans

	September 30, 2022
			Nonaccrual With No		90+ Days Past
(in thousands)	Nonaccrual		Related Allowance		Due and Accruing
Commercial construction	$	—	$	—	$	—
Commercial real estate owner occupied		604		371		—
Commercial real estate non-owner occupied		747		430		—
Tax exempt		—		—		—
Commercial and industrial		279		187		2
Residential real estate		5,094		1,539		242
Home equity		1,044		70		15
Consumer other		5		—		—
Total	$	7,773	$	2,597	$	259

	December 31, 2021
			Nonaccrual With No		90+ Days Past
(in thousands)	Nonaccrual		Related Allowance		Due and Accruing
Commercial construction	$	—	$	—	$	—
Commercial real estate owner occupied		783		424		—
Commercial real estate non-owner occupied		622		459		—
Tax exempt		—		—		—
Commercial and industrial		677		542		30
Residential real estate		6,835		2,537		41
Home equity		1,269		305		63
Consumer other		5		—		—
Total	$	10,191	$	4,267	$	134

Schedule of amortized cost basis of collateral-dependent loans

	September 30, 2022				December 31, 2021
(in thousands)	Real Estate		Other		Real Estate		Other
Commercial construction	$	—	$	—	$	—	$	—
Commercial real estate owner occupied		604		—		783		—
Commercial real estate non-owner occupied		747		—		622		—
Tax exempt		—		—		—		—
Commercial and industrial		122		157		385		292
Residential real estate		5,094		—		6,835		—
Home equity		1,044		—		1,269		—
Consumer other		5		—		5		—
Total	$	7,616	$	157	$	9,899	$	292

Unfunded Loan Commitment

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

Schedule of Activity in the Allowance for Credit Losses

(in thousands)	Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022
Beginning Balance	$	2,523	$	2,152
Provision for credit losses		(26)		345
Ending Balance	$	2,497	$	2,497

(in thousands)	Three Months Ended September 30, 2021		Nine Months Ended September 30, 2021
Beginning Balance	$	1,921	$	359
Impact of ASC 326		—		1,616
Provision for credit losses		280		226
Ending Balance	$	2,201	$	2,201