Loan Quality And Allowance For Credit Losses (Tables)

6 Months Ended

Jun. 30, 2023

Loan Quality And Allowance For Credit Losses [Abstract]

Schedule of loans by Year of origination and Internally Assigned Risk Ratings



(Dollars in thousands, except per share)													Revolving		Revolving
	Term Loans												Loans		Loans
	Amortized Cost Basis by Origination Year												Amortized		Converted
As of June 30	2023		2022		2021		2020		2019		Prior		Cost Basis		to Term		Total
Residential real estate 1-4 family:
Commercial:
Risk rating:
Pass (1-5)	$	5,901	$	9,647	$	12,319	$	9,919	$	2,615	$	24,539	$	2,064	$	—	$	67,004
OAEM (6)		—		—		—		—		—		—		—		—		—
Substandard (7)		—		—		—		—		—		—		102		—		102
Doubtful (8)		—		—		—		—		—		—		—		—		—
Total Commercial		5,901		9,647		12,319		9,919		2,615		24,539		2,166		—		67,106
Consumer:
Performing		18,695		29,125		16,198		11,070		5,772		30,601		46,357		17,097		174,915
Nonperforming		—		—		—		—		—		94		—		—		94
Total Consumer		18,695		29,125		16,198		11,070		5,772		30,695		46,357		17,097		175,009
Total	$	24,596	$	38,772	$	28,517	$	20,989	$	8,387	$	55,234	$	48,523	$	17,097	$	242,115
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Residential real estate construction:
Commercial:
Risk rating:
Pass (1-5)	$	2,450	$	3,465	$	984	$	236	$	530	$	1,590	$	—	$	—	$	9,255
OAEM (6)		—		—		910		—		—		—		—		—		910
Substandard (7)		—		—		—		—		—		—		—		—		—
Doubtful (8)		—		—		—		—		—		—		—		—		—
Total Commercial		2,450		3,465		1,894		236		530		1,590		—		—		10,165
Consumer:
Performing		2,227		5,641		—		—		—		—		—		—		7,868
Nonperforming		—		—		—		—		—		—		—		—		—
Total Consumer		2,227		5,641		—		—		—		—		—		—		7,868
Total	$	4,677	$	9,106	$	1,894	$	236	$	530	$	1,590	$	—	$	—	$	18,033
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial real estate:
Risk rating:
Pass (1-5)	$	90,721	$	118,926	$	99,902	$	52,720	$	41,114	$	224,465	$	6,378	$	—	$	634,226
OAEM (6)		—		—		—		—		—		1,085		—		—		1,085
Substandard (7)		—		—		—		—		—		2,771		50		—		2,821
Doubtful (8)		—		—		—		—		—		—		—		—		—
Total	$	90,721	$	118,926	$	99,902	$	52,720	$	41,114	$	228,321	$	6,428	$	—	$	638,132
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial:
Risk rating:
Pass (1-5)	$	21,936	$	36,927	$	45,142	$	25,698	$	4,642	$	68,894	$	32,299	$	—	$	235,538
OAEM (6)		—		—		—		—		—		—		—		—		—
Substandard (7)		—		359		—		—		—		3,701		957		—		5,017
Doubtful (8)		—		—		—		—		—		—		—		—		—
Total	$	21,936	$	37,286	$	45,142	$	25,698	$	4,642	$	72,595	$	33,256	$	—	$	240,555
Current period gross charge-offs	$	(6)	$	—	$	(81)	$	—	$	—	$	—	$	—	$	—	$	(87)

Consumer:
Performing		1,069		848		2,140		224		139		12		1,895		—		6,327
Nonperforming		—		—		—		—		—		—		—		—		—
Total	$	1,069	$	848	$	2,140	$	224	$	139	$	12	$	1,895	$	—	$	6,327
Current period gross charge-offs	$	(22)	$	(16)	$	(6)	$	—	$	—	$	—	$	(32)	$	—	$	(76)

Schedule of nonaccrual loans and loans past due over 90 days and still on accrual by class of loans



(Dollars in thousands)	Nonaccrual and Loans Past Due Over 90 Days+
					Loans Past Due
	Nonaccrual		Nonaccrual		Over 90 Days
	Without ACL		With ACL		Still Accruing
June 30, 2023
Residential Real Estate 1-4 Family
First liens	$	102	$	—	$	94
Junior liens and lines of credit		—		—		—
Total		102		—		94
Residential real estate - construction		—		—		—
Commercial real estate		—		—		—
Commercial		—		—		—
Consumer		—		—		—
Total	$	102	$	—	$	94

Internal Credit Rating For The Loan Portfolio



	Pass		OAEM		Substandard		Doubtful
(Dollars in thousands)	(1-5)		(6)		(7)		(8)		Total

December 31, 2022
Residential Real Estate 1-4 Family
First liens	$	144,377	$	—	$	120	$	—	$	144,497
Junior liens and lines of credit		73,688		—		—		—		73,688
Total		218,065		—		120		—		218,185
Residential real estate - construction		24,393		—		—		—		24,393
Commercial real estate		562,665		1,095		2,902		—		566,662
Commercial		228,085		2,751		4,766		—		235,602
Consumer		6,199		—		—		—		6,199
Total	$	1,039,407	$	3,846	$	7,788	$	—	$	1,051,041

Aging Of Payments Of The Loan Portfolio



(Dollars in thousands)	Loans Past Due
							Total				Total
	30-59 Days		60-89 Days		90 Days+		Past Due		Current		Loans
June 30, 2023
Residential Real Estate 1-4 Family
First liens	$	72	$	364	$	196	$	632	$	169,132	$	169,764
Junior liens and lines of credit		202		—		—		202		72,149		72,351
Total		274		364		196		834		241,281		242,115
Residential real estate - construction		—		—		—		—		18,033		18,033
Commercial real estate		235		—		—		235		637,897		638,132
Commercial		612		—		—		612		239,943		240,555
Consumer		30		6		—		36		6,291		6,327
Total	$	1,151	$	370	$	196	$	1,717	$	1,143,445	$	1,145,162



									Total
									Past Due &				Total
December 31, 2022	30-59 Days		60-89 Days		90 Days+		Nonaccrual		Nonaccrual		Current		Loans
Residential Real Estate 1-4 Family
First liens	$	340	$	177	$	—	$	120	$	637	$	143,860	$	144,497
Junior liens and lines of credit		490		—		—		—		490		73,198		73,688
Total		830		177		—		120		1,127		217,058		218,185
Residential real estate - construction		—		—		—		—		—		24,393		24,393
Commercial real estate		649		—		—		—		649		566,013		566,662
Commercial		681		50		—		—		731		234,871		235,602
Consumer		29		5		13		—		47		6,152		6,199
Total	$	2,189	$	232	$	13	$	120	$	2,421	$	1,048,487	$	1,051,041

Allowance for Credit Losses (ACL), By Loan Segment



	Residential Real Estate 1-4 Family
	First		Junior Liens &				Commercial
(Dollars in thousands)	Liens		Lines of Credit		Construction		Real Estate		Commercial		Consumer		Unallocated		Total

ACL at March 31, 2023	$	1,624	$	690	$	190	$	8,236	$	3,275	$	94	$	—	$	14,109
Charge-offs		—		—		—		—		(1)		(42)		—		(43)
Recoveries		—		—		3		—		12		10		—		25
Provision		96		(7)		(16)		847		(432)		36		—		524
ACL at June 30, 2023	$	1,720	$	683	$	177	$	9,083	$	2,854	$	98	$	—	$	14,615

ALL at December 31, 2022	$	459	$	234	$	343	$	7,493	$	4,846	$	133	$	667	$	14,175
Impact of adopting ASU 2016-13		1,096		493		(95)		584		(1,907)		(40)		(667)		(536)
Charge-offs		—		—		—		—		(87)		(76)		—		(163)
Recoveries		2		—		42		—		79		25		—		148
Provision		163		(44)		(113)		1,006		(77)		56		—		991
ACL at June 30, 2023	$	1,720	$	683	$	177	$	9,083	$	2,854	$	98	$	—	$	14,615

ALL at March 31, 2022	$	480	$	253	$	329	$	7,962	$	5,183	$	125	$	718	$	15,050
Charge-offs		—		—		—		—		(62)		(22)		—		(84)
Recoveries		32		—		—		—		7		10		—		49
Provision		(47)		(8)		(40)		134		(52)		6		7		—
ALL at June 30, 2022	$	465	$	245	$	289	$	8,096	$	5,076	$	119	$	725	$	15,015

ALL at December 31, 2021	$	475	$	252	$	325	$	8,168	$	5,127	$	130	$	589	$	15,066
Charge-offs		(20)		—		—		—		(63)		(46)		—		(129)
Recoveries		47		1		—		—		12		18		—		78
Provision		(37)		(8)		(36)		(72)		—		17		136		—
ALL at June 30, 2022	$	465	$	245	$	289	$	8,096	$	5,076	$	119	$	725	$	15,015

The following table presents, by class, loans that were evaluated for the ALL under the specific reserve (individually) and those that were evaluated under the general reserve (collectively) and the amount of the ALL established in each class as of December 31, 2022:



	Residential Real Estate 1-4 Family
	First		Junior Liens &				Commercial
(Dollars in thousands)	Liens		Lines of Credit		Construction		Real Estate		Commercial		Consumer		Unallocated		Total
December 31, 2022
Loans evaluated for ALL:
Individually	$	619	$	—	$	—	$	2,331	$	—	$	—	$	—	$	2,950
Collectively		143,878		73,688		24,393		564,331		235,602		6,199		—		1,048,091
Total	$	144,497	$	73,688	$	24,393	$	566,662	$	235,602	$	6,199	$	—	$	1,051,041

ALL established for ‎ loans evaluated:
Individually	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively		459		234		343		7,493		4,846		133		667		14,175
ALL at December 31, 2022	$	459	$	234	$	343	$	7,493	$	4,846	$	133	$	667	$	14,175

Impaired Financing Receivables



	Impaired Loans
	With No Allowance				With Allowance
(Dollars in thousands)			Unpaid				Unpaid
	Recorded		Principal		Recorded		Principal		Related
December 31, 2022	Investment		Balance		Investment		Balance		Allowance
Residential Real Estate 1-4 Family
First liens	$	619	$	619	$	—	$	—	$	—
Junior liens and lines of credit		—		—		—		—		—
Total		619		619		—		—		—
Residential real estate - construction		—		—		—		—		—
Commercial real estate		2,331		2,331		—		—		—
Commercial		—		—		—		—		—
Total	$	2,950	$	2,950	$	—	$	—	$	—

Troubled Debt Restructuring Loans



								Troubled Debt Restructurings
								Within the Last 12 Months
								That Have Defaulted
(Dollars in thousands)	Troubled Debt Restructurings							On Modified Terms
	Number of	Recorded						Number of	Recorded
	Contracts	Investment		Performing*		Nonperforming*		Contracts	Investment
December 31, 2022
Residential real estate - construction	—	$	—	$	—	$	—	—	$	—
Residential real estate	5		619		619		—	—		—
Commercial real estate - owner occupied	3		783		783		—	—		—
Commercial real estate - farm land	3		1,466		1,466		—	—		—
Commercial real estate - construction and land development	—		—		—		—	—		—
Commercial real estate - other	1		82		82		—	—		—
Total	12	$	2,950	$	2,950	$	—	—	$	—

*The performing status is determined by the loans compliance with the modified terms. Nonperforming is considered 90 days or more past due.