Loans and Allowance for Credit Losses

Schedule of past due aging analysis of the loan portfolio


	June 30, 2023
					90 Days
	Accruing		30 - 89 Days		or More				Total
(dollars in thousands)	Current		Past Due		Past Due		Nonaccrual		Loans
Commercial
Commercial and industrial	$	542,769	$	8,710	$	—	$	381	$	551,860
Real estate construction		78,277		—		—		151		78,428
Commercial real estate		1,002,925		—		—		896		1,003,821
Total commercial		1,623,971		8,710		—		1,428		1,634,109
Consumer
Residential real estate first mortgage		704,957		2,027		347		299		707,630
Residential real estate junior lien		156,626		105		—		500		157,231
Other revolving and installment		34,400		146		—		6		34,552
Total consumer		895,983		2,278		347		805		899,413
Total loans	$	2,519,954	$	10,988	$	347	$	2,233	$	2,533,522


	December 31, 2022
					90 Days
	Accruing		30 - 89 Days		or More				Total
(dollars in thousands)	Current		Past Due		Past Due		Nonaccrual		Loans
Commercial
Commercial and industrial	$	580,288	$	2,426	$	—	$	1,162	$	583,876
Real estate construction		97,370		—		—		440		97,810
Commercial real estate		879,830		368		—		1,472		881,670
Total commercial		1,557,488		2,794		—		3,074		1,563,356
Consumer
Residential real estate first mortgage		677,471		1,545		—		535		679,551
Residential real estate junior lien		149,918		377		—		184		150,479
Other revolving and installment		50,360		247		—		1		50,608
Total consumer		877,749		2,169		—		720		880,638
Total loans	$	2,435,237	$	4,963	$	—	$	3,794	$	2,443,994

Schedule of loans outstanding, by portfolio segment and risk category


													Revolving
(dollars in thousands)	Term Loans Amortized Cost Basis by Origination Year												Loans Amortized
As of June 30, 2023	2023		2022		2021		2020		2019		Prior		Cost Basis		Total
Commercial and industrial
Pass	$	72,021	$	124,487	$	81,827	$	72,874	$	40,610	$	24,848	$	102,467	$	519,134
Substandard		—		5,223		415		8,463		186		823		17,616		32,726
Subtotal		72,021		129,710		82,242		81,337		40,796		25,671		120,083		551,860
Real estate construction
Pass		6,263		37,948		19,315		4,440		9,150		1,006		306		78,428
Substandard		—		—		—		—		—		—		—		—
Subtotal		6,263		37,948		19,315		4,440		9,150		1,006		306		78,428
Commercial real estate
Pass		105,650		278,338		150,233		160,601		110,705		176,802		14,685		997,014
Substandard		—		—		886		—		4,096		1,825		—		6,807
Subtotal		105,650		278,338		151,119		160,601		114,801		178,627		14,685		1,003,821
Residential real estate first mortgage
Pass		40,090		202,056		226,785		111,801		34,894		91,680		216		707,522
Substandard		—		—		—		—		—		108		—		108
Subtotal		40,090		202,056		226,785		111,801		34,894		91,788		216		707,630
Residential real estate junior lien
Pass		13,552		17,683		6,751		4,936		1,947		6,939		105,066		156,874
Substandard		—		—		—		—		—		357		—		357
Subtotal		13,552		17,683		6,751		4,936		1,947		7,296		105,066		157,231
Other revolving and installment
Pass		4,090		9,031		1,467		6,071		2,506		2,037		9,350		34,552
Substandard		—		—		—		—		—		—		—		—
Subtotal		4,090		9,031		1,467		6,071		2,506		2,037		9,350		34,552
Total Loans
Pass		241,666		669,543		486,378		360,723		199,812		303,312		232,090		2,493,524
Substandard		—		5,223		1,301		8,463		4,282		3,113		17,616		39,998
Total loans	$	241,666	$	674,766	$	487,679	$	369,186	$	204,094	$	306,425	$	249,706	$	2,533,522


	December 31, 2022
			Criticized
			Special
(dollars in thousands)	Pass		Mention		Substandard		Doubtful		Total
Commercial
Commercial and industrial	$	558,694	$	21,969	$	3,213	$	—	$	583,876
Real estate construction		97,548		—		262		—		97,810
Commercial real estate		873,270		—		8,400		—		881,670
Total commercial		1,529,512		21,969		11,875		—		1,563,356
Consumer
Residential real estate first mortgage		678,743		63		745		—		679,551
Residential real estate junior lien		149,847		—		632		—		150,479
Other revolving and installment		50,607		—		1		—		50,608
Total consumer		879,197		63		1,378		—		880,638
Total loans	$	2,408,709	$	22,032	$	13,253	$	—	$	2,443,994

Schedule of amortized cost and related allowance for credit losses on loans by portfolio segment methodology


	June 30, 2023
	Amortized Cost						Allowance for Credit Losses on Loans
	Individually		Collectively				Individually		Collectively
	Evaluated for		Evaluated for				Evaluated for		Evaluated for
(dollars in thousands)	Impairment		Impairment		Total		Impairment		Impairment		Total
Commercial
Commercial and industrial	$	381	$	551,479	$	551,860	$	78	$	7,735	$	7,813
Real estate construction		—		78,428		78,428		—		3,646		3,646
Commercial real estate		886		1,002,935		1,003,821		572		12,393		12,965
Total commercial		1,267		1,632,842		1,634,109		650		23,774		24,424
Consumer
Residential real estate first mortgage		299		707,331		707,630		5		7,896		7,901
Residential real estate junior lien		500		156,731		157,231		—		1,351		1,351
Other revolving and installment		6		34,546		34,552		6		287		293
Total consumer		805		898,608		899,413		11		9,534		9,545
Unallocated		—		—		—		—		—		1,727
Total loans	$	2,072	$	2,531,450	$	2,533,522	$	661	$	33,308	$	35,696


	December 31, 2022
	Recorded Investment						Allowance for Loan Losses
	Individually		Collectively				Individually		Collectively
(dollars in thousands)	Evaluated		Evaluated		Total		Evaluated		Evaluated		Total
Commercial
Commercial and industrial	$	1,313	$	582,563	$	583,876	$	275	$	8,883	$	9,158
Real estate construction		262		97,548		97,810		97		1,349		1,446
Commercial real estate		1,472		880,198		881,670		582		12,106		12,688
Total commercial		3,047		1,560,309		1,563,356		954		22,338		23,292
Consumer
Residential real estate first mortgage		535		679,016		679,551		—		5,769		5,769
Residential real estate junior lien		184		150,295		150,479		—		1,289		1,289
Other revolving and installment		1		50,607		50,608		—		528		528
Total consumer		720		879,918		880,638		—		7,586		7,586
Unallocated		—		—		—		—		—		268
Total loans	$	3,767	$	2,440,227	$	2,443,994	$	954	$	29,924	$	31,146

Schedule of impaired loans


	December 31, 2022
	Recorded		Unpaid		Related
(dollars in thousands)	Investment		Principal		Allowance
Impaired loans with a valuation allowance
Commercial and industrial	$	675	$	711	$	275
Real estate construction		262		440		97
Commercial real estate		896		900		582
Residential real estate first mortgage		—		—		—
Total impaired loans with a valuation allowance		1,833		2,051		954
Impaired loans without a valuation allowance
Commercial and industrial		638		767		—
Real estate construction		—		—		—
Commercial real estate		576		660		—
Residential real estate first mortgage		535		573		—
Residential real estate junior lien		184		218		—
Other revolving and installment		1		1		—
Total impaired loans without a valuation allowance		1,934		2,219		—
Total impaired loans
Commercial and industrial		1,313		1,478		275
Real estate construction		262		440		97
Commercial real estate		1,472		1,560		582
Residential real estate first mortgage		535		573		—
Residential real estate junior lien		184		218		—
Other revolving and installment		1		1		—
Total impaired loans	$	3,767	$	4,270	$	954

The table below presents the average recorded investment in impaired loans and interest income for the three and six months ended June 30, 2022:


	Three months ended June 30,
	2022
	Average
	Recorded		Interest
(dollars in thousands)	Investment		Income
Impaired loans with a valuation allowance
Commercial and industrial	$	1,018	$	2
Commercial real estate		176		2
Other revolving and installment		75		—
Total impaired loans with a valuation allowance		1,269		4
Impaired loans without a valuation allowance
Commercial and industrial		761		—
Commercial real estate		629		—
Residential real estate first mortgage		1,962		—
Residential real estate junior lien		196		—
Other revolving and installment		—		—
Total impaired loans without a valuation allowance		3,548		—
Total impaired loans
Commercial and industrial		1,779		2
Commercial real estate		805		2
Residential real estate first mortgage		1,962		—
Residential real estate junior lien		196		—
Other revolving and installment		75		—
Total impaired loans	$	4,817	$	4


	Six Months Ended June 30,
	2022
	Average
	Recorded		Interest
(dollars in thousands)	Investment		Income
Impaired loans with a valuation allowance
Commercial and industrial	$	1,156	$	6
Commercial real estate		177		3
Other revolving and installment		157		—
Total impaired loans with a valuation allowance		1,490		9
Impaired loans without a valuation allowance
Commercial and industrial		761		—
Commercial real estate		629		—
Residential real estate first mortgage		1,953		—
Residential real estate junior lien		198		—
Total impaired loans without a valuation allowance		3,541		—
Total impaired loans
Commercial and industrial		1,917		6
Commercial real estate		806		3
Residential real estate first mortgage		1,953		—
Residential real estate junior lien		198		—
Other revolving and installment		157		—
Total impaired loans	$	5,031	$	9