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Loans and Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2023
Receivables [Abstract]  
Components of Loans in the Consolidated Balance Sheet The following table presents the components of loans as of the periods shown:
(Dollars in thousands)March 31, 2023December 31, 2022
Commercial:
   Business$845,801 $851,072 
   Real estate611,769 632,839 
   Acquisition, development and construction98,251 126,999 
          Total commercial$1,555,821 $1,610,910 
Residential real estate707,494 606,970 
Home equity lines of credit17,237 18,734 
Consumer78,685 131,566 
          Total loans, excluding PCI2,359,237 2,368,180 
Purchased credit impaired loans:
Residential real estate— 2,482 
          Total purchased credit impaired loans— 2,482 
Total Loans$2,359,237 $2,370,662 
   Deferred loan origination costs and (fees), net1,916 1,983 
Loans receivable$2,361,153 $2,372,645 
Amortized Cost Basis of Collateral-Dependent Loans
The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of the periods shown:
(Dollars in thousands)Real EstateVehicles & EquipmentAssignment of Cash FlowAccounts ReceivableOtherTotals
March 31, 2023
Commercial
Business$1,418 $3,269 $901 $241 $507 $6,336 
Total commercial$1,418 $3,269 $901 $241 $507 $6,336 
Residential1,710 — — — — 1,710 
Consumer— 980 — — — 980 
Total$3,128 $4,249 $901 $241 $507 $9,026 
Collateral value$2,579 $8,436 $— $178 $599 $11,792 
Impaired Loans by Class
The following table presents impaired loans by class segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of the periods shown:
 Impaired Loans with Specific AllowanceImpaired Loans with No Specific AllowanceTotal Impaired Loans
(Dollars in thousands)Recorded InvestmentRelated AllowanceRecorded InvestmentRecorded InvestmentUnpaid Principal Balance
December 31, 2022
Commercial
Business$3,436 $1,253 $7,015 $10,451 $15,324 
Real estate1,240 222 125 1,365 1,470 
Acquisition, development and construction— — — — 1,415 
          Total commercial4,676 1,475 7,140 11,816 18,209 
Residential real estate— — 2,603 2,603 2,671 
Home equity lines of credit— — 90 90 94 
Consumer1,347 268 4 1,351 1,351 
          Total impaired loans$6,023 $1,743 $9,837 $15,860 $22,325 
Average Recorded Investment in Impaired Loans and Related Interest Income Recognized The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods shown:
Three Months Ended March 31,
2022
(Dollars in thousands)Average Investment in Impaired LoansInterest Income Recognized on Accrual BasisInterest Income Recognized on Cash Basis
Commercial
Business$10,505 $— $— 
Real estate1,728 16 18 
Acquisition, development and construction322 — — 
        Total commercial12,555 16 18 
Residential8,370 5 5 
Home equity190 — — 
Consumer433 — — 
Total$21,548 $21 $23 
Classes of the Loan Portfolio Summarized by Vintage Year and the Aggregate Pass and the Criticized Categories
The following table presents the amortized cost of loans summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system by vintage year as of the period shown:
Term Loans Amortized Cost Basis by Origination Year
(Dollars in thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
March 31, 2023
Commercial business:
Risk rating:
Pass$49,657 $284,869 $137,705 $34,545 $16,733 $71,339 $231,790 $— $826,638 
Special Mention— — 69 721 101 3,101 515 — 4,507 
Substandard— 5 411 — 3,028 5,939 — — 9,383 
Doubtful— — 1,137 264 2,553 1,319 — — 5,273 
Total commercial business loans$49,657 $284,874 $139,322 $35,530 $22,415 $81,698 $232,305 $— $845,801 
Gross charge-offs$— $— $— $141 $— $— $— $— $141 
Commercial real estate:
Risk rating:
Pass$15,787 $153,443 $232,327 $12,396 $26,864 $117,383 $— $— $558,200 
Special Mention— 4,441 — — 6,898 22,667 — — 34,006 
Substandard— — — — — 19,563 — — 19,563 
Doubtful— — — — — — — — — 
Total commercial real estate loans$15,787 $157,884 $232,327 $12,396 $33,762 $159,613 $— $— $611,769 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial acquisition, development and construction:
Risk rating:
Pass$— $26,084 $44,400 $21,969 $3,128 $1,786 $— $— $97,367 
Special Mention— — — — — 18 — — 18 
Substandard— — — — — 866 — — 866 
Doubtful— — — — — — — — — 
Total commercial acquisition, development and construction loans$— $26,084 $44,400 $21,969 $3,128 $2,670 $— $— $98,251 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Residential Real Estate:
Risk rating:
Pass$79,153 $432,712 $111,001 $40,509 $6,832 $27,616 $— $— $697,823 
Special Mention— — 3,326 1,434 746 — — 5,506 5,506 
Substandard— — — 83 463 1,512 — — 2,058 
Doubtful— — — 1,226 — 881 — — 2,107 
Total residential real estate loans$79,153 $432,712 $111,001 $45,144 $8,729 $30,755 $— $— $707,494 
Gross charge-offs$— $— $— $— $— $22 $— $— $22 
Home equity lines of credit:
Risk rating:
Pass$— $37 $— $— $174 $855 $15,611 $— $16,677 
Special Mention— — — — — 225 151 — 376 
Substandard— — — — — 184 — — 184 
Doubtful— — — — — — — — — 
Total home equity lines of credit loans$— $37 $— $— $174 $1,264 $15,762 $— $17,237 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Consumer:
Risk rating:
Pass$9,571 $58,543 $9,394 $3 $73 $115 $— $— $77,699 
Special Mention— — — — — — — — — 
Substandard— 852 129 2 — 2 — — 985 
Doubtful— — — — — 1 — — 1 
Total consumer loans$9,571 $59,395 $9,523 $5 $73 $118 $— $— $78,685 
Gross charge-offs$— $3,793 $891 $— $— $— $— $— $4,684 
Total:
Risk rating:
Pass$154,168 $955,688 $534,827 $109,422 $53,804 $219,094 $247,401 $— $2,274,404 
Special Mention— 4,441 69 4,047 8,433 26,757 666 — 44,413 
Substandard— 857 540 85 3,491 28,066 — — 33,039 
Doubtful— — 1,137 1,490 2,553 2,201 — — 7,381 
Total consumer loans$154,168 $960,986 $536,573 $115,044 $68,281 $276,118 $248,067 $— $2,359,237 
Gross charge-offs$— $3,793 $891 $141 $— $22 $— $— $4,847 
The following table represents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of the periods shown:
(Dollars in thousands)PassSpecial MentionSubstandardDoubtfulTotal
December 31, 2022
Commercial
Business$830,319 $5,963 $12,103 $2,687 $851,072 
Real estate592,997 18,883 20,600 359 632,839 
Acquisition, development and construction120,788 5,277 934 — 126,999 
          Total commercial1,544,104 30,123 33,637 3,046 1,610,910 
Residential real estate605,513 760 1,556 1,623 609,452 
Home equity lines of credit18,269 375 90 — 18,734 
Consumer131,562 — 4 — 131,566 
          Total loans$2,299,448 $31,258 $35,287 $4,669 $2,370,662 
Classes of the Loan Portfolio Summarized by Aging Categories
The following table presents the amortized cost basis in loans by aging category and accrual status as of the periods shown:
(Dollars in thousands)Current30-59 Days Past Due60-89 Days Past Due90+ Days Past DueTotal Past DueTotal LoansNon-Accrual90+ Days Still AccruingNon Accrual with No Credit LossInterest Income Recognized
March 31, 2023
Commercial
Business$845,801 $— $— $— $— $845,801 $8,824 $— $4,152 $123 
Real estate609,637 2,132 — — 2,132 611,769 — — — — 
Acquisition, development and construction98,251 — — — — 98,251 — — — — 
          Total commercial1,553,689 2,132 — — 2,132 1,555,821 8,824 — 4,152 123 
Residential real estate702,611 3,519 210 1,154 4,883 707,494 3,090 — — 37 
Home equity lines of credit17,054 85 — 98 183 17,237 187 — — 3 
Consumer70,148 5,477 2,080 980 8,537 78,685 984 — — 62 
          Total loans$2,343,502 $11,213 $2,290 $2,232 $15,735 $2,359,237 $13,085 $— $4,152 $225 

The following table presents the aging of recorded investment in loans, including accruing and nonaccrual loans, as of the period shown:
(Dollars in thousands)Current30-59 Days Past Due60-89 Days Past Due90+ Days Past DueTotal Past DueTotal LoansNon-Accrual90+ Days Still Accruing
December 31, 2022
Commercial
Business$850,112 $— $960 $— $960 $851,072 $7,528 $— 
Real estate632,839 — — — — 632,839 — — 
Acquisition, development and construction126,999 — — — — 126,999 — — 
          Total commercial1,609,950 — 960 — 960 1,610,910 7,528 — 
Residential real estate606,554 1,820 1,078 — 2,898 609,452 2,196 — 
Home equity lines of credit18,131 603 — — 603 18,734 90 — 
Consumer120,504 6,848 2,867 1,347 11,062 131,566 1,351 — 
          Total loans$2,355,139 $9,271 $4,905 $1,347 $15,523 $2,370,662 $11,165 $— 
Allowance Activity
The following table presents the balance and activity for the primary segments of the ACL as of the periods shown:
CommercialResidentialHome EquityConsumerTotal
(Dollars in thousands)BusinessReal EstateAcquisition, development and constructionTotal Commercial
ALL, prior to adoption of ASC 326, at December 31, 2022$8,771 $5,704 $1,064 $15,539 $2,880 $131 $5,287 $23,837 
Impact of adopting ASC 326(126)(2,846)288 (2,684)3,889 (5)6,482 7,682 
Provision (release of allowance) for credit losses681 313 288 1,282 364 (8)2,817 4,455 
Initial allowance on loans purchased with credit deterioration710 — — 710 507 — — 1,217 
Charge-offs(141)— — (141)(22)— (4,684)(4,847)
Recoveries23 6 — 29 — 1 3,139 3,169 
ACL at March 31, 2023$9,918 $3,177 $1,640 $14,735 $7,618 $119 $13,041 $35,513 

During the three months ended March 31, 2023, there was a $0.1 million provision related to unfunded commitments. Substantially all of the charge-offs during three months ended March 31, 2023 are related to our subprime consumer automobile portfolio of loans.

The following table presents the primary segments of the ALL segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of the periods shown:
CommercialResidentialHome EquityConsumerTotal
(Dollars in thousands)BusinessReal EstateAcquisition, development and constructionTotal Commercial
ALL balance at December 31, 2021$8,027 $5,091 $982 $14,100 $948 $128 $2,427 $17,603 
     Charge-offs— — — — — — (1,124)(1,124)
     Recoveries1 7 — 8 — 2 375 385 
     Provision (release)(1,159)468 (247)(938)179 1 2,088 1,330 
ALL balance at March 31, 2022$6,869 $5,566 $735 $13,170 $1,127 $131 $3,766 $18,194 
Individually evaluated for impairment$218 $224 $— $442 $84 $— $111 $637 
Collectively evaluated for impairment$6,651 $5,342 $735 $12,728 $1,043 $131 $3,655 $17,557 

The following table presents the primary segments of our loan portfolio as of the period shown:
CommercialResidentialHome Equity Lines of CreditConsumerTotal
(Dollars in thousands)BusinessReal EstateAcquisition, development and constructionTotal Commercial
March 31, 2022
Individually evaluated for impairment$11,085 $1,196 $1,139 $13,420 $8,364 $230 $512 $22,526 
Collectively evaluated for impairment774,222 598,066 95,699 1,467,987 305,199 21,194 65,119 1,859,499 
Total Loans$785,307 $599,262 $96,838 $1,481,407 $313,563 $21,424 $65,631 $1,882,025 
The following tables summarize the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment for the PCI loan portfolio as of the periods indicated:

CommercialResidentialConsumerTotal
(Dollars in thousands)BusinessReal EstateTotal Commercial
ALL balance as of December 31, 2021— — — 544 119 663 
     Recoveries1 — 1 — — 1 
     Provision (release)111 53 164 (221)7 (50)
ALL balance as of March 31, 2022112 53 165 323 126 614 
Collectively evaluated for impairment112 53 165 323 126 614 
Schedule of Accretable Yield
The following table presents the accretable yield, or income expected to be collected, during three months ended March 31, 2022:

(Dollars in thousands)March 31, 2022
Beginning balance$6,505 
Accretion of income(808)
Other changes in expected cash flows556
Ending balance6,253