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Loans and Allowance for Credit Losses (Tables)
12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Schedule of Components of Loans in Consolidated Balance Sheet
The components of loans in the Consolidated Balance Sheet at December 31, were as follows:
(Dollars in thousands)20242023
Commercial:
Business$668,458 $797,100 
Real estate632,898 670,584 
Acquisition, development and construction115,500 134,004 
Total commercial$1,416,856 $1,601,688 
Residential real estate650,708 672,547 
Home equity lines of credit12,933 14,531 
Consumer18,620 27,408 
Total loans$2,099,117 $2,316,174 
Deferred loan origination costs, net of fees1,014 1,420 
Loans receivable$2,100,131 $2,317,594 
Schedule of Classes of the Loan Portfolio Summarized by 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)20242023202220212020PriorRevolving Loans Converted to TermTotal
December 31, 2024
Commercial business:
Risk rating:
Pass$68,129 $124,736 $211,526 $51,202 $58,015 $98,747 $6,439 $618,794 
Special Mention35 — 21,053 9,259 1,816 4,863 813 37,839 
Substandard— 1,227 2,549 1,777 508 2,290 207 8,558 
Doubtful— — 1,681 292 278 1,016 — 3,267 
Total commercial business loans$68,164 $125,963 $236,809 $62,530 $60,617 $106,916 $7,459 $668,458 
Gross charge-offs$$— $3,125 $885 $— $367 $— $4,379 
Commercial real estate:
Risk rating:
Pass$63,058 $97,119 $121,694 $161,886 $9,222 $122,809 $431 $576,219 
Special Mention— — — 7,743 — — — 7,743 
Substandard— — — 17,984 — 30,952 — 48,936 
Doubtful— — — — — — — — 
Total commercial real estate loans$63,058 $97,119 $121,694 $187,613 $9,222 $153,761 $431 $632,898 
Gross charge-offs$— $— $— $— $— $— $— $— 
Commercial acquisition, development and construction:
Risk rating:
Pass$11,352 $13,675 $36,425 $29,885 $6,673 $1,287 $— $99,297 
Special Mention— — — — — 2,267 — 2,267 
Substandard— — — 13,506 — 430 — 13,936 
Doubtful— — — — — — — — 
Total commercial acquisition, development and construction loans$11,352 $13,675 $36,425 $43,391 $6,673 $3,984 $— $115,500 
Gross charge-offs$— $— $— $— $— $— $— $— 
Term Loans Amortized Cost Basis by Origination Year
(Dollars in thousands)20242023202220212020PriorRevolving Loans Converted to TermTotal
December 31, 2024
Residential Real Estate:
Risk rating:
Pass$81,559 $37,914 $375,065 $90,440 $32,902 $22,759 $2,666 $643,305 
Special Mention— — 798 — — 1,567 — 2,365 
Substandard— — 2,798 — 360 1,672 115 4,945 
Doubtful— — — — — 93 — 93 
Total residential real estate loans$81,559 $37,914 $378,661 $90,440 $33,262 $26,091 $2,781 $650,708 
Gross charge-offs$— $— $— $11 $— $— $— $11 
Home equity lines of credit:
Risk rating:
Pass$— $57 $35 $— $1,056 $11,475 $— $12,623 
Special Mention— — — — — 142 — 142 
Substandard— — — — — 168 — 168 
Doubtful— — — — — — — — 
Total home equity lines of credit loans$— $57 $35 $— $1,056 $11,785 $— $12,933 
Gross charge-offs$— $— $— $— $— $— $— $— 
Consumer:
Risk rating:
Pass$— $1,597 $12,812 $3,949 $— $43 $— $18,401 
Special Mention— — — — — — — — 
Substandard— 21 147 51 — — — 219 
Doubtful— — — — — — — — 
Total consumer loans$— $1,618 $12,959 $4,000 $— $43 $— $18,620 
Gross charge-offs$— $384 $2,530 $452 $— $— $— $3,366 
Total:
Risk rating:
Pass$224,098 $275,098 $757,557 $337,362 $107,868 $257,120 $9,536 $1,968,639 
Special Mention35 — 21,851 17,002 1,816 8,839 813 50,356 
Substandard— 1,248 5,494 33,318 868 35,512 322 76,762 
Doubtful— — 1,681 292 278 1,109 — 3,360 
Total loans$224,133 $276,346 $786,583 $387,974 $110,830 $302,580 $10,671 $2,099,117 
Gross charge-offs$$384 $5,655 $1,348 $— $367 $— $7,756 
Term Loans Amortized Cost Basis by Origination Year
(Dollars in thousands)20232022202120202019PriorRevolving Loans Converted to TermTotal
December 31, 2023
Commercial business:
Risk rating:
Pass$187,743 $249,718 $95,547 $66,195 $51,025 $91,435 $4,617 $746,280 
Special Mention990 30,695 72 830 339 3,767 1,647 38,340 
Substandard368 988 317 — 4,640 1,436 204 7,953 
Doubtful— 2,022 839 264 — 1,402 — 4,527 
Total commercial business loans$189,101 $283,423 $96,775 $67,289 $56,004 $98,040 $6,468 $797,100 
Gross charge-offs$— $228 $1,250 $141 $— $2,953 $— $4,572 
Commercial real estate:
Risk rating:
Pass$112,063 $149,189 $217,222 $11,952 $26,438 $108,934 $546 $626,344 
Special Mention— — 7,961 — 6,079 11,201 — 25,241 
Substandard— — — — — 18,999 — 18,999 
Doubtful— — — — — — — — 
Total commercial real estate loans$112,063 $149,189 $225,183 $11,952 $32,517 $139,134 $546 $670,584 
Gross charge-offs$— $— $— $— $— $— $— $— 
Commercial acquisition, development and construction:
Risk rating:
Pass$6,546 $54,468 $31,120 $22,041 $2,940 $1,483 $— $118,598 
Special Mention— — 14,652 — — — — 14,652 
Substandard— — — — — 754 — 754 
Doubtful— — — — — — — — 
Total commercial acquisition, development and construction loans$6,546 $54,468 $45,772 $22,041 $2,940 $2,237 $— $134,004 
Gross charge-offs$— $— $— $— $— $— $— $— 
Residential Real Estate:
Risk rating:
Pass$54,453 $429,326 $107,763 $40,202 $8,292 $21,313 $— $661,349 
Special Mention— — — 4,224 414 708 — 5,346 
Substandard— 988 3,764 82 146 777 — 5,757 
Doubtful— — — — — 95 — 95 
Total residential real estate loans$54,453 $430,314 $111,527 $44,508 $8,852 $22,893 $— $672,547 
Gross charge-offs$— $— $— $— $19 $381 $— $400 
Term Loans Amortized Cost Basis by Origination Year
(Dollars in thousands)20242023202220212020PriorRevolving Loans Converted to TermTotal
December 31, 2024
Home equity lines of credit:
Risk rating:
Pass$58 $36 $— $1,338 $5,147 $7,568 $— $14,147 
Special Mention— — — — — 223 — 223 
Substandard— — — — — 161 — 161 
Doubtful— — — — — — — — 
Total home equity lines of credit loans$58 $36 $— $1,338 $5,147 $7,952 $— $14,531 
Gross charge-offs$— $— $— $— $— $— $— $— 
Consumer:
Risk rating:
Pass$2,295 $18,926 $5,753 $— $39 $51 $— $27,064 
Special Mention— — — — — — — — 
Substandard20 266 58 — — — — 344 
Doubtful— — — — — — — — 
Total consumer loans$2,315 $19,192 $5,811 $— $39 $51 $— $27,408 
Gross charge-offs$1,144 $10,608 $1,753 $— $— $$— $13,507 
Total:
Risk rating:
Pass$363,158 $901,663 $457,405 $141,728 $93,881 $230,784 $5,163 $2,193,782 
Special Mention990 30,695 22,685 5,054 6,832 15,899 1,647 83,802 
Substandard388 2,242 4,139 82 4,786 22,127 204 33,968 
Doubtful— 2,022 839 264 — 1,497 — 4,622 
Total loans$364,536 $936,622 $485,068 $147,128 $105,499 $270,307 $7,014 $2,316,174 
Gross charge-offs$1,144 $10,836 $3,003 $141 $19 $3,336 $— $18,479 
Schedule of 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
December 31, 2024
Commercial:
Business$662,163 $736 $2,252 $3,307 $6,295 $668,458 $6,174 $— $2,682 $— 
Real estate614,914 — — 17,984 17,984 632,898 — 17,984 — — 
Acquisition, development and construction101,564 430 — 13,506 13,936 115,500 13,935 — 13,936 — 
Total commercial1,378,641 1,166 2,252 34,797 38,215 1,416,856 20,109 17,984 16,618 — 
Residential645,430 3,364 45 1,869 5,278 650,708 4,110 — 1,871 — 
Home equity lines of credit12,799 40 46 48 134 12,933 168 — — — 
Consumer16,720 1,390 290 220 1,900 18,620 220 — — — 
Total loans$2,053,590 $5,960 $2,633 $36,934 $45,527 $2,099,117 $24,607 $17,984 $18,489 $— 
December 31, 2023
Commercial:
Business$788,430 $4,728 $448 $3,494 $8,670 $797,100 $6,926 $— $1,825 $— 
Real estate670,170 — 414 — 414 670,584 — — — — 
Acquisition, development and construction134,004 — — — — 134,004 754 — 754 — 
Total commercial1,592,604 4,728 862 3,494 9,084 1,601,688 7,680 — 2,579 — 
Residential670,539 1,671 337 — 2,008 672,547 82 — — — 
Home equity lines of credit14,522 — — 14,531 161 — — — 
Consumer24,494 1,792 778 344 2,914 27,408 344 — — — 
Total loans$2,302,159 $8,200 $1,977 $3,838 $14,015 $2,316,174 $8,267 $— $2,579 $— 
Schedule Of Collateral Dependent Loans At Amortized Cost
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 and EquipmentAssignment of Cash FlowAccounts ReceivableOtherTotalsAllowance for Credit Losses
December 31, 2024
Commercial
Business$2,500 $1,516 $— $— $240 $4,256 $827 
Real estate17,984 — — — — 17,984 — 
Acquisition, development and construction13,506 — — — — 13,506 — 
Total commercial33,990 1,516 — — 240 35,746 827 
Residential2,866 — — — — 2,866 36 
Home equity lines of credit— — — — — — — 
Consumer— 220 — — — 220 73 
Total$36,856 $1,736 $— $— $240 $38,832 $936 
Collateral value$66,247 $2,578 $— $— $— $68,825 
December 31, 2023
Commercial
Business$424 $2,277 $— $452 $1,037 $4,190 $1,583 
Real estate— — — — — — — 
Acquisition, development and construction— — — — — — — 
Total commercial$424 $2,277 $— $452 $1,037 $4,190 $1,583 
Residential— — — — — — — 
Home equity lines of credit— — — — — — — 
Consumer— 344 — — — 344 60 
Total$424 $2,621 $— $452 $1,037 $4,534 $1,643 
Collateral value$301 $2,040 $— $906 $320 $3,567 
Schedule of Allowance Activity
The following table presents the balance and activity for the primary segments of the ACL as of the periods shown:
Commercial
(Dollars in thousands)BusinessReal EstateAcquisition, development and constructionTotal CommercialResidentialHome Equity Lines of CreditConsumerTotal
ACL balance at December 31, 2023$7,931 $2,931 $1,674 $12,536 $6,412 $97 $3,079 $22,124 
Provision (release of allowance) for credit losses2,091 (380)98 1,809 886 (6)(751)1,938 
Charge-offs(4,379)— — (4,379)(11)— (3,366)(7,756)
Recoveries852 20 — 872 35 2,446 3,357 
ACL balance at December 31, 2024$6,495 $2,571 $1,772 $10,838 $7,322 $95 $1,408 $19,663 
Commercial
(Dollars in thousands)BusinessReal EstateAcquisition, development and constructionTotal CommercialResidentialHome Equity Lines of CreditConsumerTotal
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 losses2,954 71 322 3,347 (541)(33)(4,091)(1,318)
Initial allowance on loans purchased with credit deterioration710 — — 710 507 — — 1,217 
Charge-offs(4,572)— — (4,572)(400)— (13,507)(18,479)
Recoveries194 — 196 77 8,908 9,185 
ACL balance at December 31, 2023$7,931 $2,931 $1,674 $12,536 $6,412 $97 $3,079 $22,124 
Commercial
(Dollars in thousands)BusinessReal EstateAcquisition, development and constructionTotal CommercialResidentialHome Equity Lines of CreditConsumerTotal
ALL, prior to adoption of ASC 326, at December 31, 2021$8,027 $5,091 $982 $14,100 $1,492 $128 $2,546 $18,266 
Provision (release of allowance) for credit losses3,546 486 82 4,114 1,472 (4)8,612 14,194 
Charge-offs(2,858)— — (2,858)(84)— (12,241)(15,183)
Recoveries56 127 — 183 — 6,370 6,560 
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 
Individually evaluated for impairment$1,253 $222 $— $1,475 $— $— $268 $1,743 
Collectively evaluated for impairment$7,518 $5,482 $1,064 $14,064 $2,880 $131 $5,019 $22,094 
Schedule of Loans Modified
The following tables summarize the amortized cost basis of loans that were modified during the twelve months ended December 31, 2024:
(Dollars in thousands)Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionTotalTotal Class of Financing Receivable
December 31, 2024
Commercial
Business$— $4,541 $466 $— $5,007 %
Real estate— — — — — — %
Acquisition, development and construction— — — — — — %
Total commercial— 4,541 466 — 5,007 — %
Residential— — — — — — %
Home equity lines of credit— — — — — — %
Consumer— — — — — — %
Total$— $4,541 $466 $— $5,007 — %
December 31, 2023
Commercial
Business$— $8,535 $— $— $8,535 %
Real estate— 11,201 1,702 — 12,903 %
Acquisition, development and construction— — 754 — 754 %
Total commercial— 19,736 2,456 — 22,192 %
Residential— — — — — — %
Home equity lines of credit— — — — — — %
Consumer— — — — — — %
Total$— $19,736 $2,456 $— $22,192 %
The following table presents the performance of such loans that have been modified as of the period shown:
(Dollars in thousands)30-59 Days
Past Due
60-89 Days
Past Due
Greater Than
89 Days
Past Due
Total Past Due
December 31, 2024
Commercial
Business$114 $964 $1,693 $2,771 
Real estate— — — — 
Acquisition, development and construction— — — — 
Total commercial114 964 1,693 2,771 
Residential— — — — 
Home equity lines of credit— — — — 
Consumer— — — — 
Total$114 $964 $1,693 $2,771 
December 31, 2023
Commercial
Business$1,702 $418 $3,370 $5,490 
Real estate— — — — 
Acquisition, development and construction— — — — 
Total commercial1,702 418 3,370 5,490 
Residential— — — — 
Home equity lines of credit— — — — 
Consumer— — — — 
Total$1,702 $418 $3,370 $5,490 
Schedule of Modified Loans with Subsequent Default
The following table presents the amortized cost basis of loans that had a payment default and were modified prior to that default to borrowers experiencing financial difficulty as of the period shown:
(Dollars in thousands)Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionTotal
December 31, 2024
Commercial
Business$— $988 $— $— $988 
Real estate— — — — — 
Acquisition, development and construction— — — — — 
Total commercial— 988 — — 988 
Residential— — — — — 
Home equity lines of credit— — — — — 
Consumer— — — — — 
Total$— $988 $— $— $988 
December 31, 2023
Commercial
Business$— $2,634 $— $— $2,634 
Real estate— — — — — 
Acquisition, development and construction— — — — — 
Total commercial— 2,634 — — 2,634 
Residential— — — — — 
Home equity lines of credit— — — — — 
Consumer— — — — — 
Total$— $2,634 $— $— $2,634