Partners Bancorp (PTRS) 10-Q 11 Aug 23 2023 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2023	Aug. 11, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-39285
Document Period End Date	Jun. 30, 2023
Entity Registrant Name	Partners Bancorp
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	52-1559535
Entity Address, Address Line One	2245 Northwood Drive
Entity Address, City or Town	Salisbury
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	21801
City Area Code	410
Local Phone Number	548-1100
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	PTRS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		17,985,577
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000832090
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Jun. 30, 2023	Dec. 31, 2022
ASSETS
Cash and due from banks		$ 16,011	$ 14,678	[1]
Interest-bearing deposits in other financial institutions		43,128	103,922	[1]
Federal funds sold		17,478	22,990	[1]
Cash and cash equivalents		76,617	141,590	[1]
Securities available for sale, at fair value	[1]		133,657
Securities available for sale, at fair value		129,259
Loans held for sale		519	1,314	[1]
Loans, less allowance for credit losses of $16,217 at June 30, 2023 and $14,315 at December 31, 2022		1,261,546	1,218,551	[1]
Accrued interest receivable		4,440	4,566	[1]
Premises and equipment, less accumulated depreciation		14,441	14,857	[1]
Restricted stock		6,163	6,512	[1]
Operating lease right-of-use assets		4,826	5,065	[1]
Financing lease right-of-use assets		1,482	1,550	[1]
Other investments		5,364	4,888	[1]
Bank owned life insurance		18,940	18,706	[1]
Core deposit intangible, net		1,300	1,540	[1]
Goodwill		9,582	9,582	[1]
Other assets		13,983	12,234	[1]
Total assets		1,548,462	1,574,612	[1]
Deposits:
Non-interest-bearing demand		500,500	528,770	[1]
Interest-bearing demand		118,842	121,787	[1]
Savings and money market		387,596	431,538	[1]
Time		311,544	257,510	[1]
Deposits, Total		1,318,482	1,339,605	[1]
Accrued interest payable on deposits		907	267	[1]
Short-term borrowings with the Federal Home Loan Bank		31,100	42,000	[1]
Long-term borrowings with the Federal Home Loan Bank		19,800	19,800	[1]
Subordinated notes payable, net		22,238	22,215	[1]
Other borrowings		602	613	[1]
Operating lease liabilities		5,230	5,465	[1]
Financing lease liabilities		1,941	2,006	[1]
Other liabilities		4,855	3,312	[1]
Total liabilities		1,405,155	1,435,283	[1]
COMMITMENTS, CONTINGENCIES & SUBSEQUENT EVENT				[1]
STOCKHOLDERS' EQUITY
Common stock, par value $0.01, authorized 40,000,000 shares, issued and outstanding 17,985,577 as of June 30, 2023 and 17,973,724 as of December 31, 2022, including 9,338 nonvested shares as of June 30, 2023 and 18,669 nonvested shares as of December 31, 2022		180	180	[1]
Surplus		88,785	88,669	[1]
Retained earnings		67,097	62,854	[1]
Noncontrolling interest in consolidated subsidiaries		592	707	[1]
Accumulated other comprehensive loss, net of tax		(13,347)	(13,081)	[1]
Total stockholders' equity		143,307	139,329	[1]
Total liabilities and stockholders' equity		$ 1,548,462	$ 1,574,612	[1]
[1] * Derived from audited consolidated financial statements.

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
CONSOLIDATED BALANCE SHEETS
Allowance for credit losses	$ 16,217	$ 14,315
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	17,985,577	17,973,724
Common stock, shares outstanding	17,985,577	17,973,724
Nonvested shares	9,338	18,669

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
INTEREST INCOME ON:
Loans, including fees	$ 17,118	$ 13,209	$ 33,269	$ 26,103
Investment securities:
Taxable	676	516	1,364	912
Tax -Exempt	187	181	372	365
Federal funds sold	306	63	570	80
Other interest income	536	554	1,240	716
TOTAL INTEREST INCOME	18,823	14,523	36,815	28,176
INTEREST EXPENSE ON:
Deposits	3,163	1,126	5,128	2,369
Borrowings	821	508	1,679	1,013
TOTAL INTEREST EXPENSE	3,984	1,634	6,807	3,382
NET INTEREST INCOME	14,839	12,889	30,008	24,794
Provision for credit losses	93	319	393	384
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	14,746	12,570	29,615	24,410
OTHER INCOME:
Service charges on deposit accounts	262	249	509	472
Mortgage banking income, net	104	427	356	718
Impairment loss on restricted stock		(1)		(1)
Other income	709	778	1,436	1,556
TOTAL OTHER INCOME	1,075	1,453	2,301	2,745
OTHER EXPENSES:
Salaries and employee benefits	5,849	5,504	11,854	11,080
Premises and equipment	1,374	1,400	2,776	2,881
(Gains) and operating expenses on other real estate owned, net		(2)		(9)
Amortization of core deposit intangible	119	132	240	266
Merger related expenses	428	157	1,460	553
Other expenses	3,121	2,723	6,171	5,530
TOTAL OTHER EXPENSES	10,891	9,914	22,501	20,301
INCOME BEFORE TAXES ON INCOME	4,930	4,109	9,415	6,854
Federal and state income taxes	1,250	926	2,436	1,622
NET INCOME	3,680	3,183	6,979	5,232
Net loss (income) attributable to noncontrolling interest	84	(4)	115	56
NET INCOME ATTRIBUTABLE TO PARTNERS BANCORP	$ 3,764	$ 3,179	$ 7,094	$ 5,288
Earnings per common share:
Basic earnings per share	$ 0.209	$ 0.177	$ 0.394	$ 0.294
Diluted earnings per share	$ 0.209	$ 0.177	$ 0.394	$ 0.293

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
NET INCOME	$ 3,680	$ 3,183	$ 6,979	$ 5,232
OTHER COMPREHENSIVE LOSS, NET OF TAX:
Unrealized holding losses on securities available for sale arising during the period	(2,052)	(6,783)	(331)	(14,442)
Deferred income tax effect	477	1,549	65	3,365
Other comprehensive income (loss), net of tax	(1,575)	(5,234)	(266)	(11,077)
TOTAL OTHER COMPREHENSIVE LOSS	(1,575)	(5,234)	(266)	(11,077)
COMPREHENSIVE INCOME (LOSS)	2,105	(2,051)	6,713	(5,845)
Comprehensive (loss) income attributable to noncontrolling interest	84	(4)	115	56
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO PARTNERS BANCORP	$ 2,189	$ (2,055)	$ 6,828	$ (5,789)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Surplus	Retained Earnings Cumulative effect adjustment	Retained Earnings	Noncontrolling Interest	Accumulated Other Comprehensive Income (Loss)	Cumulative effect adjustment	Total
Balances at beginning of period at Dec. 31, 2021	$ 179	$ 88,390		$ 51,305	$ 1,179	$ 315		$ 141,368
Increase (Decrease) in Stockholders' Equity
Net income (loss)				5,288	(56)			5,232
Other comprehensive loss, net of tax						(11,077)		(11,077)
COMPREHENSIVE INCOME (LOSS)								(5,845)
Cash dividends				(898)				(898)
Minority interest equity distribution					(1)			(1)
Stock option exercises, net		115						115
Stock-based compensation expense		47						47
Balances at end of period at Jun. 30, 2022	179	88,552		55,695	1,122	(10,762)		134,786
Balances at beginning of period at Mar. 31, 2022	179	88,529		52,965	1,118	(5,528)		137,263
Increase (Decrease) in Stockholders' Equity
Net income (loss)				3,179	4			3,183
Other comprehensive loss, net of tax						(5,234)		(5,234)
COMPREHENSIVE INCOME (LOSS)								(2,051)
Cash dividends				(449)				(449)
Stock-based compensation expense		23						23
Balances at end of period at Jun. 30, 2022	179	88,552		55,695	1,122	(10,762)		134,786
Balances at beginning of period at Dec. 31, 2022	180	88,669	$ (1,412)	62,854	707	(13,081)	$ (1,412)	139,329	[1]
Increase (Decrease) in Stockholders' Equity
Net income (loss)				7,094	(115)			6,979
Other comprehensive loss, net of tax						(266)		(266)
COMPREHENSIVE INCOME (LOSS)								6,713
Cash dividends				(1,439)				(1,439)
Stock option exercises, net		69						69
Stock-based compensation expense		47						47
Balances at end of period at Jun. 30, 2023	180	88,785		67,097	592	(13,347)		143,307
Balances at beginning of period at Mar. 31, 2023	180	88,762		64,052	676	(11,772)		141,898
Increase (Decrease) in Stockholders' Equity
Net income (loss)				3,764	(84)			3,680
Other comprehensive loss, net of tax						(1,575)		(1,575)
COMPREHENSIVE INCOME (LOSS)								2,105
Cash dividends				(719)				(719)
Stock-based compensation expense		23						23
Balances at end of period at Jun. 30, 2023	$ 180	$ 88,785		$ 67,097	$ 592	$ (13,347)		$ 143,307
[1] * Derived from audited consolidated financial statements.

CONSOLIDATED STATEMENTS OF ST_2

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Cash dividends per share	$ 0.040	$ 0.025	$ 0.080	$ 0.050

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 3,764	$ 3,179	$ 7,094	$ 5,288
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	93	319	393	384	$ 1,348
Depreciation			837	943
Amortization and accretion			124	250
Loss on equity securities				151
Gain on sale of loans held for sale, originated			(334)	(655)
Net gains on other real estate owned, including writedowns				(5)
Increase in bank owned life insurance cash surrender value			(234)	(225)
Stockbased compensation expense, net of employee tax obligation			47	47
Net accretion of certain acquisition related fair value adjustments	(56)	17	(45)	(175)
Impairment loss on restricted stock		1		1
Changes in assets and liabilities:
Loans held for sale			1,129	1,663
Accrued interest receivable			126	227
Other assets			(946)	(744)
Accrued interest payable on deposits			640	(63)
Other liabilities			903	(453)
Net cash provided by operating activities			9,734	6,634
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of securities available for sale			(1,768)	(35,206)
Purchases of other investments			(476)	(15)
Proceeds from maturities and paydowns of securities available for sale			5,734	7,138
Net increase in loans			(44,538)	(52,804)
Purchases of premises and equipment			(421)	(415)
Proceeds from the sales of foreclosed assets				842
Redemption (purchase) of restricted stocks			349	(64)
Net cash used in investing activities			(41,120)	(80,524)
CASH FLOWS FROM FINANCING ACTIVITIES:
(Decrease) increase in demand, money market, and savings deposits, net			(75,157)	104,810
Cash received for the exercise of stock options			69	115
Increase (decrease) in time deposits, net			54,033	(52,343)
Decrease in borrowings, net			(10,913)	(91)
Net decrease in minority interest contributed capital			(115)	(57)
Decrease in finance lease liability			(65)	(59)
Dividends paid			(1,439)	(898)
Net cash (used in) provided by financing activities			(33,587)	51,477
Net decrease in cash and cash equivalents			(64,973)	(22,413)
Cash and cash equivalents, beginning of period			141,590	338,829	338,829
Cash and cash equivalents, ending of period	$ 76,617	$ 316,416	76,617	316,416	$ 141,590
Supplementary cash flow information:
Interest paid			5,557	3,965
Income taxes paid			2,498	1,461
Right of use assets and corresponding lease liabilities			190
Unrealized loss on securities available for sale			(331)	$ (14,442)
SUPPLEMENTARY NONCASH INVESTING ACTIVITIES
Cumulative effect adjustment due to the adoption of ASU 2016-13			$ (1,412)

Nature of Business and Its Sign

Nature of Business and Its Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
Nature of Business and Its Significant Accounting Policies
Nature of Business and Its Significant Accounting Policies	Note 1. Nature of Business and Its Significant Accounting Policies Partners Bancorp (the “Company”) is a multi-bank holding company with two wholly owned subsidiaries (the “Subsidiaries”), The Bank of Delmarva (“Delmarva”), a commercial bank headquartered in Seaford, Delaware that operates primarily in Wicomico and Worcester counties in Maryland, Sussex County in Delaware, and Camden and Burlington counties in New Jersey, and Virginia Partners Bank (“Partners”), a commercial bank headquartered in Fredericksburg, Virginia that operates in and around the greater Fredericksburg, Virginia area (Stafford County, Spotsylvania County, King George County, Caroline County, and the City of Fredericksburg, Virginia), the Greater Washington area (the District of Columbia, Arlington County, Clarke County, Fairfax County, Fauquier County, Loudoun County, Prince William County, Warren County, and the Cities of Alexandria, Fairfax, Falls Church, Manassas, Manassas Park, and Reston, Virginia) and Anne Arundel County and the three counties of Southern Maryland (Charles County, Calvert County and St. Mary’s County). The Subsidiaries engage in general banking business and provide a broad range of financial services to individual and corporate customers, and are subject to competition from other financial institutions. The Subsidiaries are also subject to the regulations of certain federal and state agencies and undergo periodic examinations by those regulatory authorities. The accounting and reporting policies of the Company and its Subsidiaries conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and practices within the banking industry. Significant accounting policies not disclosed elsewhere in the consolidated financial statements are as follows: Principles of Consolidation: The consolidated financial statements include the accounts of the Company; the Subsidiaries, along with their consolidated subsidiaries: Delmarva Real Estate Holdings, LLC, a wholly owned subsidiary of Delmarva, which is a real estate holding company; Davie Circle, LLC, a wholly owned subsidiary of Delmarva, which is a real estate holding company; Delmarva BK Holdings, LLC, a wholly owned subsidiary of Delmarva, which is a real estate holding company; DHB Development, LLC, of which Delmarva previously held a 40.55% interest, and which is a real estate holding company; Bear Holdings, Inc., a wholly owned subsidiary of Partners, which is a real estate holding company; Johnson Mortgage Company, LLC (“JMC”), of which Partners owns a 51% interest, and which is a residential mortgage company; and 410 William Street, LLC, a wholly owned subsidiary of Partners, which holds investment property. During the second quarter of 2023, DHB Development, LLC was dissolved, and all remaining assets were distributed to the members, which resulted in no gain or loss to the Company. All significant intercompany accounts and transactions have been eliminated in consolidation. Financial Statement Presentation: The unaudited interim consolidated financial statements do not include all information and notes necessary for a complete presentation of financial position, results of operations, changes in stockholder's equity, and cash flows in conformity with U.S. GAAP. In the opinion of management, the unaudited interim consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the consolidated financial position at June 30, 2023 and December 31, 2022, the results of its operations for three and six months and its cash flows for the six months ended June 30, 2023 and 2022 in conformity with U.S. GAAP. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023, or for any other period. Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Certain of the critical accounting estimates are more dependent on such judgment and in some cases may contribute to volatility in the Company’s reported financial performance should the assumptions and estimates used change over time due to changes in circumstances. The more significant areas in which management of the Company applies critical assumptions and estimates that are most susceptible to change in the short term include the calculation of the allowance for credit losses and the unrealized gain or loss on investment securities available for sale. Adoption of New Accounting Standard in 2023: Effective January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” The Company adopted the CECL Standard using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Upon adoption, we recognized an after-tax cumulative effect reduction to retained earnings totaling $1.4 million, as detailed in the table below. As discussed further below, purchased credit deteriorated assets (“PCD”) were measured on a prospective basis in accordance with the CECL Standard and all purchased credit impaired (“PCI”) loans as of December 31, 2022 were considered PCD loans upon adoption. Results for reporting periods beginning after January 1, 2023 are presented under the CECL Standard while prior period amounts continue to be reported in accordance with previously applicable accounting guidance. The adoption of the CECL Standard resulted in the following adjustments to our financial statements as of January 1, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dollars in thousands ​ ​ ​ ​ Change in Consolidated Balance Sheet ​ ​ Tax Effect ​ ​ Change to Retained Earnings from Adoption of ASU 2016-13 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses ("ACL") - loans ​ ​ ​ $ 1,330 ​ $ 310 ​ $ 1,020 Adjustment related to purchased credit-deteriorated loans ​ (1) ​ ​ 9 ​ ​ - ​ ​ 9 Total ACL - loans ​ ​ ​ ​ 1,339 ​ ​ 310 ​ ​ 1,029 Adjustment to PCD Loans ​ ​ ​ ​ (9) ​ ​ - ​ ​ (9) ACL - unfunded credit commitments ​ ​ ​ ​ 512 ​ ​ 120 ​ ​ 392 Total impact of CECL adoption ​ ​ ​ $ 1,842 ​ $ 430 ​ $ 1,412 (1) Represents a gross-up of the balance sheet related to PCD loans resulting from the adoption of ASU 2016-13 on January 1, 2023. Loans designated as PCI and accounted for under Accounting Standards Codification (“ASC”) 310-30 were designated as PCD loans. In accordance with the CECL Standard, the Company did not reassess whether PCI loans met the criteria of PCD loans as of the date of adoption and determined all PCI loans were PCD loans. The Company recorded an increase to the balance of PCD loans and an increase to the allowance for credit losses for loans of $9 thousand, which represented the expected credit losses for PCD loans. The remaining non-credit discount (based on the adjusted amortized cost basis) will be accreted into interest income at the effective interest rate as of January 1, 2023 over the remaining estimated life of the loans. On January 1, 2023, the Company adopted ASU 2022-02, “Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures” In December 2018, the Board of Governors of the Federal Reserve System (the “Federal Reserve”), the Federal Deposit Insurance Corporation (“FDIC”) and the Office of Comptroller of the Currency (“OCC”) approved a final rule to address changes to credit loss accounting under U.S. GAAP, including banking organizations’ adoption of the CECL Standard. The final rule provides banking organizations the option to phase-in, over a three-year period, the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. The Company has elected to phase-in the impact of the adoption of this standard on the Company’s regulatory capital over the three-year transition period. See Note 9 – Regulatory Capital Requirements for further information. ​ Investment Securities Available for Sale (“AFS”): Management evaluates all AFS investment securities in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. If the Company has the intent to sell the investment security or it is more likely than not that the Company will be required to sell the investment security, the investment security is written down to fair value and the entire loss is recorded in earnings. ​ If either of the above criteria is not met, the Company evaluates whether the decline in fair value is the result of credit losses or other factors. In making the assessment, the Company may consider various factors including the extent to which fair value is less than amortized cost, downgrades in the ratings of the investment security by a rating agency, the failure of the issuer to make scheduled interest or principal payments and adverse conditions specific to the investment security. If the assessment indicates that a credit loss exists, the present value of cash flows expected to be collected are compared to the amortized cost basis of the investment security and any deficiency is recorded as an allowance for credit losses, limited by the amount that the fair value is less than the amortized cost basis. Any amount of unrealized loss that has not been recorded through an allowance for credit loss is recognized in other comprehensive income (loss), net of tax. ​ Changes in the allowance for credit losses are recorded as a provision for (or recovery of) credit losses in the Consolidated Statements of Income. Losses are charged against the allowance for credit losses when management believes an AFS investment security is confirmed to be uncollectible or when either of the criteria regarding intent or requirement to sell is met. At June 30, 2023, there was no allowance for credit losses related to the AFS investment securities portfolio. Impairment may result from credit deterioration of the issuer or collateral underlying the investment security. In performing an assessment of recoverability, all relevant information is considered, including the length of time and extent to which fair value has been less than the amortized cost basis, the cause of the price decline, credit performance of the issuer and underlying collateral, and recoveries or further declines in fair value subsequent to the balance sheet date. Restricted Stock, Equity Securities and Other Investments: Federal Reserve Bank (“FRB”) stock, at cost, Federal Home Loan Bank (“FHLB”) stock, at cost, Atlantic Central Bankers Bank (“ACBB”) stock, at cost, and Community Bankers Bank (“CBB”) stock, at cost, are equity interests in the FRB, FHLB, ACBB, and CBB, respectively. These securities do not have a readily determinable fair value for purposes of ASC 321 “Investments-Equity Securities” Equity securities with readily determinable fair values are carried at fair value, with changes in fair value reported in net income. Any equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments. The entirety of any impairment on equity securities is recognized in earnings. Equity securities are included in “Other investments” on the Consolidated Balance Sheets. Other investments include an equity ownership of Solomon Hess SBA Loan Fund LLC, for which the value is adjusted for its pro rata share of assets in the fund. Other investments also include equity securities the Company holds with Community Capital Management in their Community Reinvestment Act (“CRA”) Qualified Investment Fund. Bank Owned Life Insurance: The Company has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other changes or amounts due that are probable at settlement. Loans and the Allowance for Credit Losses: Loans are generally carried at the amount of unpaid principal, adjusted for deferred loan fees and costs, which are amortized over the term of the loan using the effective interest rate method. Interest on loans is accrued based on the principal amounts outstanding. It is the Company’s policy to discontinue the accrual of interest when a borrower is determined to be experiencing financial difficulty or when principal or interest on the loan is delinquent for ninety days or more. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Cash collections on loans classified as nonaccrual are applied as reductions of the loan principal balance and no interest income is recognized on those loans until the principal balance has been collected. As a general rule, a nonaccrual loan may be restored to accrual status when (1) none of its principal and interest is due and unpaid, and the Company expects repayment of the remaining contractual principal and interest, or (2) when it otherwise becomes well secured and in the process of collection. The allowance for credit losses is maintained at a level believed to be adequate by management to absorb expected losses inherent in the loan portfolio and is based on the size and current risk characteristics of the loan portfolio, the concentration of credits within each segment, the effects of any changes in lending policies, procedures, including underwriting standards and collections, charge-off and recovery practices, the effects of changes in the experience, depth and ability of management, the quality of the Company’s loan review system and the degree of oversight by the Company’s Board of Directors, an assessment of individually evaluated loans and actual loss experience, the value of the underlying collateral, the condition of various market segments, both locally and nationally, and current reasonable and supportable forecasts of economic events in specific industries and geographical areas, including unemployment levels, and other pertinent factors, including regulatory guidance and general economic conditions, along with external factors such as competition and the legal environment. The Company’s allowance for credit losses incorporates forward-looking information and applies a reversion methodology beyond the reasonable and supportable forecast period of twelve months. After the forecast period, the Company’s model immediately reverts back to the historical loss rate adjusted for the quantitative factors described above for the remaining contractual life of the financial assets. Determination of the allowance for credit losses is inherently subjective, as it requires significant estimates, which may be susceptible to significant change. Loan losses are charged off against the allowance for credit losses, while recoveries of amounts previously charged off are credited to the allowance for credit losses. A provision for credit losses is charged to operations based on management's periodic evaluation of the factors previously mentioned, as well as other pertinent factors. Evaluations are conducted at least quarterly and more often if deemed necessary. Expected credit losses are estimated over the contractual term of the loans, and are adjusted for expected prepayments. The Company’s allowance for credit losses measures the expected lifetime loss using pooled assumptions and loan level details for loans that share common risk characteristics and evaluates an individual reserve in instances where the loans do not share the same risk characteristics. Loans that share common risk characteristics are considered collectively assessed. Loss estimates within the collectively assessed population are based on a combination of pooled assumptions and loan-level characteristics. Quantitative loss estimation models have been developed based largely on internal and peer historical data at the loan and portfolio levels and the economic conditions during the same time period. Expected losses for the Company’s collectively assessed loan segments are estimated using the average charge-off method, which calculates an estimate of losses based upon historical experience and is applied prospectively across the life of each loan. This method calculates future cash flows at the individual loan level based upon loan characteristics. Life calculations for each loan grouping incorporates future cash flows at the loan level, in addition to prepayment assumptions. Loans that do not share risk characteristics are evaluated on an individual basis. The individual reserve component relates to loans that have shown substantial credit deterioration as measured by risk rating and/or delinquency status. In addition, the Company has elected the practical expedient that would include loans for individual assessment consideration if the repayment of the loan is expected substantially through the operation or sale of collateral because the borrower is experiencing financial difficulty. Where the source of repayment is the sale of collateral, the specific reserve is based on the fair value of the underlying collateral, less selling costs, compared to the amortized cost basis of the loan. If the specific reserve is based on the operation of the collateral, the reserve is calculated based on the fair value of the collateral calculated as the present value of expected cash flows from the operation of the collateral, compared to the amortized cost basis. If the Company determines that the value of a collateral dependent loan is less than the recorded investment in the loan, the Company charges off the deficiency if it is determined that such amount is deemed uncollectible. The Company obtains appraisals from a pre-approved list of independent, third party appraisers located in the market in which the collateral is located. At a minimum, it is ascertained that the appraiser is currently licensed in the state in which the property is located, experienced in the appraisal of properties similar to the property being appraised, has knowledge of current real estate market conditions and financing trends, and is reputable. Independent appraisals or valuations are obtained on all individually assessed loans, and these appraisals or valuations are updated every twelve months. External valuation sources are the primary source to value collateral dependent loans; however, the Company may also utilize values obtained through other valuation sources. These alternative sources of value are used only if deemed to be more representative of value based on updated information regarding collateral resolution. The specific reserve on loans individually assessed is updated, reviewed, and approved on a quarterly basis at or near the end of each reporting period. The Company performs regular credit reviews of the loan portfolio to review the credit quality and adherence to its underwriting standards. Upon origination, each commercial loan is assigned a risk rating, with loans closer to one having less risk. This risk rating scale is the Company’s primary credit quality indicator. Loan Charge-off Policies Loans are generally fully or partially charged down to the fair value of securing collateral when: ● management deems the asset to be uncollectible; ● repayment is deemed to be made beyond the reasonable time frames; ● the asset has been classified as a loss by internal or external review; or ● the borrower has filed bankruptcy and the loss becomes evident owing to a lack of assets. Acquired Loans Loans acquired in connection with acquisitions are recorded at their acquisition date fair value with no carryover of related allowance for credit losses. Acquired loans are classified into two categories: (1) PCD loans, which are purchased financial instruments with more than insignificant credit deterioration, and (2) loans with insignificant credit deterioration (“non-PCD”). PCD loans are defined as a loan or group of loans that have experienced more than insignificant credit deterioration since origination. Non-PCD loans will have an allowance for credit losses established on the acquisition date, which is recognized in the current period provision for credit losses. For PCD loans, an allowance for credit losses is recognized on day 1 by adding it to the fair value of the loan, which is the “Day 1 amortized cost basis”. There is no provision for credit losses recognized on PCD loans because the initial allowance for credit losses is established by grossing-up the amortized cost of the PCD loan. Determining the fair value of the acquired loans involves estimating the principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. Management considers a number of factors in evaluating the acquisition date fair value including the remaining life of the acquired loans, delinquency status, estimated prepayments, payment options and other loan features, internal risk grade, estimated value of the underlying collateral and interest rate environment. ​ PCD loans are accounted for in accordance with ASC 326-20, Financial Instruments- Credit Losses- Measured at Amortized Cost (“ASC 326-20”) , if, at acquisition, the loan or pool of loans has experienced more than insignificant credit deterioration since origination. At acquisition, the Company considers several factors as indicators that an acquired loan or pool of loans has experienced more than insignificant credit deterioration. These factors include loans 30 days or more past due, loans with an internal risk grade of below average or lower, loans classified as nonaccrual by the acquired institution, and the materiality of the credit. ​ Under ASC 326-20, a group of loans with similar risk characteristics can be assessed to determine if the pool of loans is PCD. However, if a loan does not have similar risk characteristics as any other acquired loan, the loan is individually assessed to determine if it is PCD. In addition, the initial allowance for credit losses related to acquired loans can be estimated for a pool of loans if the loans have similar risk characteristics. Even if the loans were individually assessed to determine if they were PCD, they can be grouped together in the initial allowance for credit losses calculation if they share similar risk characteristics. If a PCD loan has an unfunded commitment at acquisition, the initial allowance for credit losses calculation reflects only the expected credit losses associated with the funded portion of the PCD loan. Expected credit losses associated with the unfunded commitment are included in the initial measurement of the commitment. For PCD loans, the non-credit discount or premium is allocated to individual loans as determined by the difference between the loan’s amortized cost basis and the unpaid principal balance. The non-credit premium or discount is recognized into interest income on a level yield basis over the remaining expected life of the loan. For non-PCD loans, the interest and credit discount or premium is allocated to individual loans as determined by the difference between the loan’s amortized cost basis and the unpaid principal balance. The premium or discount is recognized into interest income on a level yield basis over the remaining expected life of the loan. ​ TDRs prior to the Adoption of ASU 2022-02 Prior to the adoption of ASU 2022-02, a loan was accounted for and reported as a TDR when, for economic or legal reasons, the Company granted a concession to a borrower experiencing financial difficulty that it would not otherwise consider. Management would work with borrowers identified as being in financial difficulty to modify to more affordable terms before their loan would reach nonaccrual status. These modified terms may have included rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. A restructuring that resulted in only an insignificant delay in payment was not considered a concession. A delay may have been considered insignificant if the payments subject to the delay were insignificant relative to the unpaid principal or collateral value and the contractual amount due, or the delay in timing of the restructured payment period was insignificant relative to the frequency of the payments, the loan’s original contractual maturity or original expected duration. TDRs were designated as impaired loans because interest and principal payments would not be received in accordance with the original contract terms. TDRs that were performing and on accrual status as of the date of the modification remained on accrual status. TDRs that were nonperforming as of the date of modification generally remained as nonaccrual until the prospect of future payments in accordance with the modified loan agreement was reasonably assured, generally demonstrated when the borrower maintained compliance with the restructured terms for a predetermined period, normally at least six months. TDRs that had temporary below-market concessions remained designated as a TDR and impaired regardless of the accrual or performance status until the loan was paid off. However, if the TDR was modified in a subsequent restructure with market terms and the borrower was not currently experiencing financial difficulty, then the loan was no longer designated as a TDR. See “Adoption of New Accounting Standards in 2023” as discussed previously for further discussion related to accounting for modifications of loans to borrowers experiencing financial difficulty subsequent to the adoption of ASU 2022-02 as of January 1, 2023. Loans Held for Sale: These loans consist of loans made through Partners’ majority owned subsidiary JMC. JMC is engaged in the mortgage brokerage business in which JMC originates, closes, and immediately sells mortgage loans and related servicing rights to permanent investors in the secondary market. JMC has written commitments from several permanent investors (large financial institutions) and only closes loans that meet the lending requirements of the permanent investors. Loans are made in connection with the purchase or refinancing of existing and new one to four family residences primarily in southeastern and northern Virginia. Loans are initially funded primarily by JMC’s lines of credit. With the concurrent sale and delivery of mortgage loans to the permanent investors, JMC records receivables for mortgage loans sold and recognizes the related gains and losses on such sales. The receivables for mortgage loans sold are usually satisfied within 30 days of sale, whereupon the related borrowings on the lines of credit are repaid. Because of the short holding period, these loans are carried at the lower of cost or market and no market adjustments were deemed necessary in the first two quarters of 2023 or 2022. JMC’s agreements with its permanent investors include provisions that could require JMC to repurchase loans under certain circumstances, and also provide for the assessment of fees if loans go into default or are refinanced within specified periods of time. JMC has never been required to repurchase a loan and no indemnification reserve has been recorded as of June 30, 2023 or December 31, 2022 for possible repurchases. Management does not believe that a provision for early default or refinancing cost is necessary at June 30, 2023 or December 31, 2022. JMC enters into commitments with its customers to originate loans where the interest rate on the loans is determined (locked) prior to funding. While this subjects JMC to the risk that interest rates may change from the commitment date to the funding date, JMC simultaneously enters into financial agreements (best efforts forward sales commitments) with its permanent investors giving JMC the right to deliver (put) loans to the investors at specified yields, thus enabling JMC to manage its exposure to changes in interest rates such that JMC is not subject to fluctuations in fair values of these agreements due to changes in interest rates. However, a default by a permanent investor required to purchase loans under such an agreement would expose JMC to potential fluctuation in selling prices of loans due to changes in interest rates. The fair value of rate lock commitments and forward sales commitments was considered immaterial at June 30, 2023 and December 31, 2022 and an adjustment was not recorded. Gains and losses on the sale of mortgages as well as origination fees, brokerage fees, interest rate lock-in fees and other fees paid by mortgagors are included in “Mortgage banking income, net” on the Company’s Consolidated Statements of Income. Other Real Estate Owned (“OREO”): OREO comprises properties acquired in partial or total satisfaction of problem loans. The properties are recorded at the lower of cost or fair value, net of estimated selling costs, at the date acquired creating a new cost basis. Losses arising at the time of acquisition of such properties are charged against the allowance for credit losses. Subsequent write-downs that may be required, and expenses of operation and gains and losses realized from the sale of OREO are included in “Other expenses” on the Company’s Consolidated Statements of Income. At June 30, 2023 and December 31, 2022, there were no properties included in OREO. Intangible Assets and Amortization: During the fourth quarter of 2019, the Company acquired Partners, and during the first quarter of 2018, the Company acquired Liberty Bell Bank (“Liberty”). ASC 350, Intangibles-Goodwill and Other Goodwill: ​ The Company’s goodwill was recognized in connection with the acquisitions of Partners and Liberty. The Company reviews the carrying value of goodwill at least annually during the fourth quarter or more frequently if certain impairment indicators exist. In testing goodwill for impairment, the Company may first consider qualitative factors to determine whether the existence of events or circumstances lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, we conclude that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then no further testing is required and the goodwill of the reporting unit is not impaired. If the Company elects to bypass the qualitative assessment or if management concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the fair value of the reporting unit is compared with its carrying amount to determine whether an impairment exists. No impairment adjustment of goodwill was required for the six months ended June 30, 2023 or 2022 or for the year ended December 31, 2022 based on management’s assessment. Accounting for Stock Based Compensation: The Company follows ASC 718-10, Compensation—Stock Compensation Earnings Per Share: Basic earnings per common share are determined by dividing net income by the weighted average number of shares outstanding for each period, giving retroactive effect to stock splits and dividends. Weighted average common shares outstanding were

Investment Securities

Investment Securities	6 Months Ended
	Jun. 30, 2023
Investment Securities
Investment Securities	Note 2. Investment Securities The Company’s AFS investment securities portfolio, other than subordinated debt investment securities, is either covered by the explicit or implied guarantee of the United States government or one of its agencies or are generally rated investment grade or higher. Subordinated debt investments, which are not rated, are issued by financial institutions within the geographic region of the Company. In addition, the Company performs a quarterly credit review on the majority of its municipal bonds issued by states and political subdivisions. All AFS investment securities were current with AFS investment securities past due or on nonaccrual as of June 30, 2023 or December 31, 2022. As such, the Company has recorded ​ The following tables summarize the amortized cost and fair value of AFS investment securities and the corresponding amounts of gross unrealized gains and losses at June 30, 2023 and December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ ​ Dollars in Thousands ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Fair ​ Cost Gains Losses Value Obligations of U.S. Government agencies and corporations ​ $ 17,191 ​ $ — ​ $ 1,660 ​ $ 15,531 Obligations of States and political subdivisions ​ 29,654 ​ 13 ​ 2,412 ​ 27,255 Mortgage-backed securities ​ 97,306 ​ — ​ 13,120 ​ 84,186 Subordinated debt investments ​ ​ 2,470 ​ ​ — ​ ​ 183 ​ ​ 2,287 ​ ​ $ 146,621 ​ $ 13 ​ $ 17,375 ​ $ 129,259 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ ​ Dollars in Thousands ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Fair ​ Cost Gains Losses Value Obligations of U.S. Government agencies and corporations ​ $ 17,115 ​ $ — ​ $ 1,649 ​ $ 15,466 Obligations of States and political subdivisions ​ 29,480 ​ 7 ​ 2,422 ​ 27,065 Mortgage-backed securities ​ 101,626 ​ — ​ 12,886 ​ 88,740 Subordinated debt investments ​ ​ 2,468 ​ ​ — ​ ​ 82 ​ ​ 2,386 ​ ​ $ 150,689 ​ $ 7 ​ $ 17,039 ​ $ 133,657 ​ Gross unrealized losses and fair values, aggregated by investment security category and length of time that individual investment securities have been in a continuous unrealized loss position, at June 30, 2023 and December 31, 2022, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ ​ Dollars in Thousands ​ ​ Less than 12 months ​ 12 months or more ​ Total ​ ​ Fair ​ Unrealized ​ Fair ​ Unrealized ​ Fair ​ Unrealized ​ Value Loss Value Loss Value Loss Obligations of U.S. Government agencies and corporations ​ $ 7,659 ​ $ 169 ​ $ 7,872 ​ $ 1,491 ​ $ 15,531 ​ $ 1,660 Obligations of States and political subdivisions ​ 9,479 ​ 232 ​ 17,087 ​ 2,180 ​ 26,566 ​ 2,412 Mortgage-backed securities ​ 1,456 ​ 59 ​ 82,727 ​ 13,061 ​ 84,183 ​ 13,120 Subordinated debt investments ​ ​ 442 ​ ​ 37 ​ ​ 1,595 ​ ​ 146 ​ ​ 2,037 ​ ​ 183 Total investment securities with unrealized losses ​ $ 19,036 ​ $ 497 ​ $ 109,281 ​ $ 16,878 ​ $ 128,317 ​ $ 17,375 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ ​ Dollars in Thousands ​ ​ Less than 12 months ​ 12 months or more ​ Total ​ ​ Fair ​ Unrealized ​ Fair ​ Unrealized ​ Fair ​ Unrealized ​ Value Loss Value Loss Value Loss Obligations of U.S. Government agencies and corporations ​ $ 12,447 ​ $ 829 ​ $ 3,019 ​ $ 820 ​ $ 15,466 ​ $ 1,649 Obligations of States and political subdivisions ​ 23,975 ​ 1,714 ​ 1,821 ​ 708 ​ 25,796 ​ 2,422 Mortgage-backed securities ​ 34,133 ​ 2,343 ​ 54,605 ​ 10,543 ​ 88,738 ​ 12,886 Subordinated debt investments ​ 2,136 ​ ​ 82 ​ ​ — ​ ​ — ​ 2,136 ​ 82 Total investment securities with unrealized losses ​ $ 72,691 ​ $ 4,968 ​ $ 59,445 ​ $ 12,071 ​ $ 132,136 ​ $ 17,039 ​ At June 30, 2023, there were two mortgage-backed investment securities (“MBS”), eight agency investment securities, one subordinated debt investment security and twenty-two municipal investment securities that have been in a continuous unrealized loss position for less than twelve months. At June 30, 2023, there were sixty-nine MBS investment securities, ten agency investment securities, three subordinated debt investment securities, and thirty-eight municipal investment securities that had been in a continuous unrealized loss position for more than twelve months. The Company has evaluated AFS investment securities in an unrealized loss position for credit related impairment at June 30, 2023 and concluded no impairment existed based on several factors, which included: (1) the majority of these investment securities are of high credit quality, (2) unrealized losses are primarily the result of market volatility and increases in market interest rates, (3) the contractual terms of the investments do not permit the issuer(s) to settle the investment securities at a price less than the cost basis of each investment, (4) issuers continue to make timely principal and interest payments, and (5) the Company does not intend to sell any of the investment securities and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investment securities before recovery of their amortized cost basis. As such, the Company has recorded no allowance for credit losses related to AFS investment securities as of June 30, 2023. During the three and six months ended June 30, 2023 and 2022, the Company did not sell any investment securities. During the three and six months ended June 30, 2023, no investment securities either matured or were called. During the three months ended June 30, 2022, there were no investment securities that either matured or were called, and during the six months ended June 30, 2022, one investment security either matured or was called, resulting in no gain or loss for the period. The Company has pledged certain investment securities as collateral for qualified customers’ deposit accounts at June 30, 2023 and December 31, 2022. The amortized cost and fair value of these pledged investment securities was $10.2 million and $8.9 million, respectively, at June 30, 2023. The amortized cost and fair value of these pledged investment securities was $10.4 million and $9.1 million, respectively, at December 31, 2022. The Company realized a loss of $27 thousand on equity securities during the three months ended June 30, 2023 and no gain or loss on equity securities during the six months ended June 30, 2023. The Company realized a loss of thousand on equity securities during the three and six months ended June 30, 2022, respectively. These losses are included in “Other expenses” in the Consolidated Statements of Income. Contractual maturities of investment securities at June 30, 2023 are shown below. Actual maturities may differ from contractual maturities because debtors may have the right to call or prepay obligations with or without call or prepayment penalties. MBS investment securities have no stated maturity and primarily reflect investments in various Pass-through and Participation Certificates issued by the Federal National Mortgage Association and the Government National Mortgage Association. Repayment of MBS investment securities is affected by the contractual repayment terms of the underlying mortgages collateralizing these obligations and the current level of interest rates. The following is a summary of maturities, calls, or repricing of AFS investment securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ Investment Securities AFS ​ ​ Dollars in Thousands ​ ​ ​ Amortized ​ ​ Fair ​ ​ Cost ​ Value Due in one year or less ​ $ 995 ​ $ 976 Due after one year through five years ​ 17,599 ​ 16,750 Due after five years through ten years ​ 40,755 ​ 37,757 Due after ten years or more ​ 87,272 ​ 73,776 ​ ​ $ 146,621 ​ $ 129,259 ​

Loans and Allowance for Credit

Loans and Allowance for Credit Losses	6 Months Ended
	Jun. 30, 2023
Loans and Allowance for Credit Losses
Loans and Allowance for Credit Losses	Note 3. Loans and Allowance for Credit Losses Major categories of loans as of June 30, 2023 and December 31, 2022 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in thousands) June 30, 2023 December 31, 2022 Originated Loans ​ ​ Real Estate Mortgage ​ ​ ​ ​ ​ ​ Construction and land development ​ $ 108,339 ​ $ 117,256 Residential real estate ​ ​ 218,967 ​ ​ 204,211 Nonresidential ​ ​ 671,580 ​ ​ 633,910 Home equity loans ​ ​ 22,558 ​ ​ 22,866 Commercial ​ ​ 129,728 ​ ​ 115,221 Consumer and other loans ​ 2,724 ​ 2,554 ​ ​ 1,153,896 ​ 1,096,018 Acquired Loans ​ ​ Real Estate Mortgage ​ ​ ​ ​ ​ ​ Construction and land development ​ ​ 51 ​ ​ 40 Residential real estate ​ 23,911 ​ 25,693 Nonresidential ​ ​ 81,546 ​ ​ 88,710 Home equity loans ​ ​ 7,870 ​ ​ 8,579 Commercial ​ ​ 10,273 ​ ​ 13,332 Consumer and other loans ​ 216 ​ 494 ​ ​ ​ 123,867 ​ ​ 136,848 Total Loans ​ ​ Real Estate Mortgage ​ ​ ​ ​ Construction and land development ​ ​ 108,390 ​ ​ 117,296 Residential real estate ​ ​ 242,878 ​ ​ 229,904 Nonresidential ​ ​ 753,126 ​ ​ 722,620 Home equity loans ​ ​ 30,428 ​ ​ 31,445 Commercial ​ ​ 140,001 ​ ​ 128,553 Consumer and other loans ​ 2,940 ​ 3,048 ​ ​ 1,277,763 ​ 1,232,866 Less: Allowance for credit losses ​ (16,217) ​ (14,315) ​ ​ $ 1,261,546 ​ $ 1,218,551 ​ Allowance for Credit Losses On January 1, 2023, the Company adopted ASU 2016-13. The allowance for credit losses under ASU 2016-13 is calculated utilizing the average historical loss methodology. The Company uses historical loss rates for the CECL Standard calculation based on Company specific historical losses and peer loss history, where applicable. The Company utilizes multiple assumptions to calculate the expected credit losses, which may include loan groupings, prepayment speeds, unfunded commitment funding assumptions, and forward-looking factors for the forecast period. For its reasonable and supportable forecasting of current expected credit losses, the Company analyzes a simple regression using forecasted economic metrics and historical peer loss data. The Company uses the average of four quarters of projected charge-offs and recoveries based on the Federal Open Markets Committee (“FOMC”) forecast to account for the forward-looking adjustment. To further adjust the allowance for credit losses for expected losses not already included within the quantitative component of the calculation, the Company considers the following qualitative adjustment factors: concentration of credit, ability of staff, loan review, trends in loan quality, policy changes, collateral, and changes in nature and/or volume of loans. The Company made an accounting election to exclude accrued interest from the measurement of the allowance for credit losses because the Company has a robust policy in place to reverse or write-off accrued interest when loans are placed on nonaccrual, as described in Note 1 – Nature of Business and Its Significant Accounting Policies. All loan information presented as of June 30, 2023 is in accordance with ASU 2016-13. All loan information presented as of December 31, 2022, or prior to the three and six month periods ended June 30, 2023, is presented in accordance with previously applicable U.S. GAAP. Prior to adopting ASU 2016-13, the Company reviewed and analyzed each of the segments above using historical charge-off experience for their respective segments as well as the following qualitative factors: changes in the levels and trends in delinquencies, nonaccruals, classified assets and TDRs; changes in the value of underlying collateral; changes in the nature and volume of the portfolio; effects of any changes in lending policies, procedures, including underwriting standards and collections, charge-off and recovery practices; changes in the experience, depth and ability of management; changes in the national and local economic conditions and developments, including the condition of various market segments; changes in the concentration of credits within each pool; changes in the quality of the Company’s loan review system and the degree of oversight by the Company’s Board of Directors; changes in external factors such as competition and the legal environment. These factors resulted in a FASB ASC 450-10-20 calculated reserve for environmental factors. Credit quality indicators are utilized to help estimate the collectability of each loan within the segments. The primary credit quality indicator used for evaluating credit quality is the risk rating categories of Pass, Watch, Special Mention, Substandard, and Doubtful. While other credit quality indicators may be evaluated as part of the Company’s credit risk management activities, including delinquency trends and loan or borrower specific market conditions, among other things, these indicators are primarily used in estimating the allowance for credit losses. The determination for a specific reserve is measured based on the present value of expected future cash flows, discounted at the loan's effective interest rate, except when the sole (remaining) source of repayment for the loan is the operation or liquidation of the collateral. In these cases, management uses the current fair value of the collateral, less selling cost when foreclosure is probable, instead of discounted cash flows. If management determined that the value of the loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), a specific reserve is recognized within the allowance for credit losses estimate or a charge-off to the allowance for credit losses. The establishment of a specific reserve does not necessarily mean that the loan with the specific reserve will definitely incur a loss at the reserve level. It is only an estimation of potential loss based upon known events that are subject to change. A specific reserve will not be established unless loss elements can be determined and quantified based on known facts. The following table includes impairment information relating to loans and the allowance for credit losses as of December 31, 2022, prior to the adoption of ASU 2016-13: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ and Land ​ Residential ​ ​ ​ ​ ​ ​ ​ Consumer ​ ​ ​ ​ ​ ​ Dollars in Thousands Development Real Estate Nonresidential Home Equity Commercial and Other Unallocated Total Balance at December 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Purchased credit impaired loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance in allowance ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — Related loan balance ​ — ​ 696 ​ 352 ​ — ​ 8 ​ — ​ — ​ 1,056 Individually evaluated for impairment: ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance in allowance ​ $ 8 ​ $ — ​ $ — ​ $ — ​ $ 282 ​ $ — ​ $ — ​ $ 290 Related loan balance ​ 259 ​ 1,748 ​ ​ 2,442 ​ 54 ​ 326 ​ — ​ — ​ 4,829 Collectively evaluated for impairment: ​ ​ ​ ​ ​ ​ ​ ​ Balance in allowance ​ $ 1,072 ​ $ 2,059 ​ $ 8,637 ​ $ 249 ​ $ 1,636 ​ $ 76 ​ $ 296 ​ $ 14,025 Related loan balance ​ 117,037 ​ 227,460 ​ 719,826 ​ 31,391 ​ 128,219 ​ 3,048 ​ — ​ 1,226,981 ​ Note: The balances above include unamortized discounts on acquired loans of The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for the three and six months ended June 30, 2023 and the year ended December 31, 2022. Allocation of a portion of the allowance for credit losses to one loan class does not preclude its availability to absorb losses in other loan classes. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ ​ Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ and Land ​ Residential ​ ​ ​ ​ ​ ​ ​ Consumer ​ ​ ​ ​ ​ ​ Dollars in Thousands Development Real Estate Nonresidential Home Equity Commercial and Other Unallocated Total Quarter Ended ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning Balance ​ $ 2,364 ​ $ 2,556 ​ $ 7,622 ​ $ 641 ​ $ 2,357 ​ $ 47 ​ $ 509 ​ $ 16,096 Adjustment for PCD acquired loans ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Charge-offs ​ — ​ — ​ — ​ — ​ (2) ​ (14) ​ — ​ (16) Recoveries ​ — ​ 10 ​ 20 ​ 1 ​ 21 ​ 3 ​ — ​ 55 Provision/(recovery) ​ (431) ​ 144 ​ 381 ​ (14) ​ 187 ​ 11 ​ (196) ​ 82 Ending Balance ​ $ 1,933 ​ $ 2,710 ​ $ 8,023 ​ $ 628 ​ $ 2,563 ​ $ 47 ​ $ 313 ​ $ 16,217 Six Months Ended ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning Balance ​ $ 1,080 ​ $ 2,059 ​ $ 8,637 ​ $ 249 ​ $ 1,918 ​ $ 76 ​ $ 296 ​ $ 14,315 Effect of adoption of ASC 326 ​ ​ 1,919 ​ ​ 259 ​ ​ (1,579) ​ ​ 453 ​ ​ 347 ​ ​ (27) ​ ​ (33) ​ ​ 1,339 Adjustment for PCD acquired loans ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Charge-offs ​ (10) ​ ​ — ​ ​ — ​ ​ — ​ (52) ​ (29) ​ — ​ (91) Recoveries ​ — ​ ​ 27 ​ ​ 19 ​ ​ 2 ​ 93 ​ 11 ​ — ​ 152 Provision/(recovery) ​ (1,056) ​ ​ 365 ​ ​ 946 ​ ​ (76) ​ 257 ​ 16 ​ 50 ​ 502 Ending Balance ​ $ 1,933 ​ $ 2,710 ​ $ 8,023 ​ $ 628 ​ $ 2,563 ​ $ 47 ​ $ 313 ​ $ 16,217 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ ​ Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ and Land ​ Residential ​ ​ ​ ​ ​ ​ ​ Consumer ​ ​ ​ ​ ​ ​ Dollars in Thousands Development Real Estate Nonresidential Home Equity Commercial and Other Unallocated Total Year Ended ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning Balance ​ $ 1,143 ​ $ 1,893 ​ $ 9,239 ​ $ 212 ​ $ 1,885 ​ $ 36 ​ $ 248 ​ $ 14,656 Charge-offs ​ (13) ​ ​ — ​ ​ (1,555) ​ ​ (27) ​ (182) ​ (72) ​ — ​ (1,849) Recoveries ​ 1 ​ ​ 59 ​ ​ 23 ​ ​ 9 ​ 20 ​ 48 ​ — ​ 160 Provision/(recovery) ​ (51) ​ ​ 107 ​ ​ 930 ​ ​ 55 ​ 195 ​ 64 ​ 48 ​ 1,348 Ending Balance ​ $ 1,080 ​ $ 2,059 ​ $ 8,637 ​ $ 249 ​ $ 1,918 ​ $ 76 ​ $ 296 ​ $ 14,315 ​ Nonaccruals In general, a loan will be placed on nonaccrual status at the end of the reporting month in which the interest or principal is past due more than 90 days or it is determined that the borrower is experiencing financial difficulty that is not considered temporary. Exceptions to the policy are those loans that are in the process of collection and are well-secured. A well-secured loan is secured by collateral with sufficient market value to repay principal and all accrued interest. The following tables show nonaccrual loans as of June 30, 2023 and December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nonaccrual with ​ Nonaccrual with ​ ​ ​ ​ ​ ​ ​ ​ No Allowance ​ Allowance ​ ​ ​ ​ ​ ​ ​ ​ For Credit ​ For Credit ​ Total Nonaccrual ​ Allowance for At June 30, 2023 Losses Losses Loans Credit Losses ​ ​ Dollars in Thousands Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction and land development ​ $ 246 ​ $ — ​ $ 246 ​ $ — Residential real estate ​ ​ 1,220 ​ ​ — ​ ​ 1,220 ​ ​ — Nonresidential ​ ​ 673 ​ ​ — ​ ​ 673 ​ ​ — Home equity loans ​ ​ 52 ​ ​ — ​ ​ 52 ​ ​ — Commercial ​ ​ — ​ ​ 299 ​ ​ 299 ​ ​ 282 Consumer and other loans ​ — ​ — ​ — ​ — TOTAL ​ $ 2,191 ​ $ 299 ​ $ 2,490 ​ $ 282 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nonaccrual with ​ Nonaccrual with ​ ​ ​ ​ ​ ​ ​ ​ No Allowance ​ Allowance ​ ​ ​ ​ ​ ​ ​ ​ For Credit ​ For Credit ​ Total Nonaccrual ​ Allowance for At December 31, 2022 Losses Losses Loans Credit Losses ​ ​ Dollars in Thousands Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction and land development ​ $ 248 ​ $ 11 ​ $ 259 ​ $ 8 Residential real estate ​ ​ 1,263 ​ ​ — ​ ​ 1,263 ​ ​ — Nonresidential ​ ​ 305 ​ ​ — ​ ​ 305 ​ ​ — Home equity loans ​ ​ — ​ ​ — ​ ​ — ​ ​ — Commercial ​ ​ — ​ ​ 327 ​ ​ 327 ​ ​ 282 Consumer and other loans ​ — ​ — ​ — ​ — TOTAL ​ $ 1,816 ​ $ 338 ​ $ 2,154 ​ $ 290 ​ Modifications to Borrowers Experiencing Financial Difficulty The Company adopted ASU 2016-13 effective January 1, 2023, including the adoption of ASU 2022-02, which eliminated the recognition and measurement of TDRs and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty. As of June 30, 2023, the Company did not have any loans made to borrowers experiencing financial difficulty that were modified during the three or six months ended June 30, 2023, and as such, did not have any loans made to borrowers experiencing financial difficulty that subsequently defaulted. Payment default is defined as movement to nonperforming status, foreclosure or charge-off, whichever occurs first. ​ There was one loan secured by a 1-4 family residential property in the process of foreclosure at June 30, 2023. There were TDR Disclosures Prior to the Adoption of ASU 2022-02 There was one loan modified under the terms of a TDR during the three and six months ended June 30, 2022. A summary of loans that were modified under the terms of a TDR during the three and six months ended June 30, 2022 is shown below by class. The post-modification recorded balance reflects the period end balances, inclusive of any interest capitalized to principal, partial principal pay-downs, and principal charge-offs since the modification date. Loans modified as TDRs that were fully paid down, charged-off, or foreclosed upon by period end are not reported. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ and Land ​ Residential ​ ​ ​ ​ ​ ​ ​ Consumer ​ ​ ​ ​ Development ​ Real Estate Nonresidential Home Equity Commercial and Other Total ​ ​ Dollars in Thousands Three months ended June 30, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of loans modified during the period ​ — ​ 1 ​ — ​ — ​ — ​ — ​ 1 Pre-modification recorded balance ​ $ — ​ $ 48,303 ​ $ — ​ $ — ​ $ — ​ $ — ​ $ 48,303 Post-modification recorded balance ​ ​ — ​ ​ 48,263 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 48,263 Six months ended June 30, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of loans modified during the period ​ ​ — ​ ​ 1 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 1 Pre-modification recorded balance ​ $ — ​ $ 48,303 ​ $ — ​ $ — ​ $ — ​ $ — ​ $ 48,303 Post-modification recorded balance ​ — ​ 48,263 ​ — ​ — ​ — ​ — ​ 48,263 ​ During the three and six months ended June 30, 2022, there were no loans modified as a TDR that subsequently defaulted during the period ended June 30, 2022, which had been modified as a TDR during the twelve months prior to default. ​ Credit Quality Information The following tables represent credit exposures by creditworthiness category at June 30, 2023 and December 31, 2022. The use of creditworthiness categories to grade loans permits management to estimate a portion of credit risk. The Company’s internal creditworthiness is based on experience with similarly graded credits. The Company uses the definitions below for categorizing and managing its criticized loans. Loans categorized as “Pass” do not meet the criteria set forth below and are not considered criticized. Marginal — Loans in this category are presently protected from loss, but weaknesses are apparent which, if not corrected, could cause future problems. Loans in this category may not meet required underwriting criteria and have no mitigating factors. More than the ordinary amount of attention is warranted for these loans. Substandard — Loans in this category exhibit well-defined weaknesses that would typically bring normal repayment into jeopardy. These loans are no longer adequately protected due to well-defined weaknesses that affect the repayment capacity of the borrower. The possibility of loss is much more evident and above average supervision is required for these loans. Doubtful — Loans in this category have all the weaknesses inherent in a loan categorized as Substandard, with the characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loss — Loans in this category are of little value and are not warranted as a bankable asset. A summary of loans by risk rating segmented by year of origination as of June 30, 2023 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Term Loans by Origination Year ​ Revolving ​ ​ At June 30, 2023 ​ ​ Prior ​ 2019 ​ 2020 ​ 2021 ​ 2022 ​ 2023 ​ Loans ​ Total ​ ​ ​ Dollars in thousands Construction and Land Development ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 4,664 $ 1,377 $ 5,927 $ 22,432 $ 40,966 $ 18,693 $ 14,085 $ 108,144 Marginal ​ ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Substandard ​ ​ 74 ​ — ​ — ​ — ​ — ​ — ​ 172 ​ 246 ​ ​ ​ 4,738 ​ 1,377 ​ 5,927 ​ 22,432 ​ 40,966 ​ 18,693 ​ 14,257 ​ 108,390 Residential Real Estate ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 60,716 ​ 15,960 ​ 27,179 ​ 51,640 ​ 55,351 ​ 14,055 ​ 16,307 ​ 241,208 Marginal ​ ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Substandard ​ ​ 1,670 ​ — ​ — ​ — ​ — ​ — ​ — ​ 1,670 ​ ​ ​ 62,386 ​ 15,960 ​ 27,179 ​ 51,640 ​ 55,351 ​ 14,055 ​ 16,307 ​ 242,878 Nonresidential ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 212,558 ​ 65,028 ​ 88,216 ​ 170,428 ​ 174,165 ​ 30,277 ​ 10,239 ​ 750,911 Marginal ​ ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Substandard ​ ​ 505 ​ 385 ​ 1,325 ​ — ​ — ​ — ​ — ​ 2,215 ​ ​ ​ 213,063 ​ 65,413 ​ 89,541 ​ 170,428 ​ 174,165 ​ 30,277 ​ 10,239 ​ 753,126 Home Equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 139 ​ — ​ 19 ​ — ​ 25 ​ — ​ 30,148 ​ 30,331 Marginal ​ ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Substandard ​ ​ — ​ — ​ — ​ — ​ — ​ — ​ 97 ​ 97 ​ ​ ​ 139 ​ — ​ 19 ​ — ​ 25 ​ — ​ 30,245 ​ 30,428 Commercial ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 7,520 ​ 4,192 ​ 13,640 ​ 21,675 ​ 16,640 ​ 21,092 ​ 54,495 ​ 139,254 Marginal ​ ​ — ​ 115 ​ — ​ — ​ — ​ — ​ 332 ​ 447 Substandard ​ ​ 299 ​ — ​ — ​ — ​ 1 ​ — ​ — ​ 300 ​ ​ ​ 7,819 ​ 4,307 ​ 13,640 ​ 21,675 ​ 16,641 ​ 21,092 ​ 54,827 ​ 140,001 Consumer and Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 603 ​ 32 ​ 161 ​ 669 ​ 430 ​ 487 ​ 355 ​ 2,737 Marginal ​ ​ — ​ — ​ — ​ — ​ — ​ — ​ 203 ​ 203 Substandard ​ ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ ​ ​ 603 ​ 32 ​ 161 ​ 669 ​ 430 ​ 487 ​ 558 ​ 2,940 TOTAL ​ $ 288,748 $ 87,089 $ 136,467 $ 266,844 $ 287,578 $ 84,604 $ 126,433 $ 1,277,763 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Charge-offs ​ $ 3 $ — $ 10 $ — $ 50 $ 28 $ — $ 91 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ A summary of loans by risk rating as of December 31, 2022 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ and Land ​ Residential ​ ​ ​ ​ ​ ​ ​ Consumer ​ ​ ​ At December 31, 2022 Development ​ Real Estate Nonresidential Home Equity Commercial and Other Total ​ ​ Dollars in Thousands Pass ​ $ 117,037 ​ $ 228,217 ​ $ 721,225 ​ $ 31,347 ​ $ 127,241 ​ $ 2,700 ​ $ 1,227,767 Marginal ​ — ​ — ​ 872 ​ — ​ 985 ​ 348 ​ 2,205 Substandard ​ 259 ​ 1,687 ​ 523 ​ 98 ​ 327 ​ — ​ 2,894 TOTAL ​ $ 117,296 ​ $ 229,904 ​ $ 722,620 ​ $ 31,445 ​ $ 128,553 ​ $ 3,048 ​ $ 1,232,866 ​ ​ ​ The following tables include an aging analysis of the recorded investment of past due loans as of June 30, 2023 and December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recorded ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment ​ ​ ​ ​ ​ ​ ​ ​ Greater than ​ ​ ​ ​ ​ ​ ​ ​ ​ >90 Days ​ ​ 30 - 59 Days ​ 60 - 89 Days ​ 90 Days ​ Total ​ Current ​ Total ​ Past Due At June 30, 2023 Past Due * Past Due ** Past Due*** Past Due Balance**** Loans and Accruing ​ ​ Dollars in Thousands Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction and land development ​ $ — ​ $ — ​ $ 246 ​ $ 246 ​ $ 108,144 ​ $ 108,390 ​ $ — Residential real estate ​ ​ 260 ​ ​ 76 ​ ​ 252 ​ ​ 588 ​ ​ 242,290 ​ ​ 242,878 ​ ​ 252 Nonresidential ​ ​ — ​ ​ 2,876 ​ ​ 673 ​ ​ 3,549 ​ ​ 749,577 ​ ​ 753,126 ​ ​ — Home equity loans ​ ​ 178 ​ ​ — ​ ​ — ​ ​ 178 ​ ​ 30,250 ​ ​ 30,428 ​ ​ — Commercial ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 140,001 ​ ​ 140,001 ​ ​ — Consumer and other loans ​ — ​ — ​ — ​ — ​ 2,940 ​ 2,940 ​ — TOTAL ​ $ 438 ​ $ 2,952 ​ $ 1,171 ​ $ 4,561 ​ $ 1,273,202 ​ $ 1,277,763 ​ $ 252 ​ * Includes ** Includes *** Includes **** Includes ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recorded ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment ​ ​ ​ ​ ​ ​ ​ ​ Greater than ​ ​ ​ ​ ​ ​ ​ ​ ​ >90 Days ​ ​ 30 - 59 Days ​ 60 - 89 Days ​ 90 Days ​ Total ​ Current ​ Total ​ Past Due At December 31, 2022 Past Due* Past Due Past Due** Past Due Balance*** Loans and Accruing ​ ​ Dollars in Thousands Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction and land development ​ $ — ​ $ — ​ $ 259 ​ $ 259 ​ $ 117,037 ​ $ 117,296 ​ $ — Residential real estate ​ ​ 949 ​ ​ 225 ​ ​ 51 ​ ​ 1,225 ​ ​ 228,679 ​ ​ 229,904 ​ ​ — Nonresidential ​ ​ 474 ​ ​ — ​ ​ 305 ​ ​ 779 ​ ​ 721,841 ​ ​ 722,620 ​ ​ — Home equity loans ​ ​ 54 ​ ​ — ​ ​ 45 ​ ​ 99 ​ ​ 31,346 ​ ​ 31,445 ​ ​ 45 Commercial ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 128,553 ​ ​ 128,553 ​ ​ — Consumer and other loans ​ — ​ 2 ​ — ​ 2 ​ 3,046 ​ 3,048 ​ — TOTAL ​ $ 1,477 ​ $ 227 ​ $ 660 ​ $ 2,364 ​ $ 1,230,502 ​ $ 1,232,866 ​ $ 45 ​ * Includes $916 thousand of nonaccrual loans. ** Includes $615 thousand of nonaccrual loans. *** Includes $623 thousand of nonaccrual loans. ​ Collateral Dependent Loans A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of collateral. The following table presents the amortized cost basis of collateral dependent loans by loan segment, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to those loans. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real Estate ​ Non-Real Estate ​ ​ ​ Allowance for At June 30, 2023 Secured Loans Secured Loans Total Loans Credit Losses ​ ​ Dollars in Thousands Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction and land development ​ $ 246 ​ $ — ​ $ 246 ​ $ — Residential real estate ​ ​ 1,330 ​ ​ — ​ ​ 1,330 ​ ​ — Nonresidential ​ ​ 890 ​ ​ — ​ ​ 890 ​ ​ — Home equity loans ​ ​ 52 ​ ​ — ​ ​ 52 ​ ​ — Commercial ​ ​ — ​ ​ 299 ​ ​ 299 ​ ​ 282 Consumer and other loans ​ — ​ — ​ — ​ — TOTAL ​ $ 2,518 ​ $ 299 ​ $ 2,817 ​ $ 282 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ When the ultimate collectability of the total principal of an individually evaluated loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal, under the cost recovery method. When the ultimate collectability of the total principal of an individually evaluated loan is not in doubt and the loan is on nonaccrual status, contractual interest is credited to interest income when received, under the cash basis method. Impaired Loans (prior to the Adoption of ASU 2016-13) Prior to the adoption of ASU 2016-13, impaired loans were defined as nonaccrual loans, TDRs, PCI loans, and loans risk rated as substandard, doubtful or loss. When management identified a loan as impaired, the impairment was measured for potential loss based on the present value of expected future cash flows, discounted at the loan's effective interest rate, except when the sole (remaining) source of repayment for the loan was the operation or liquidation of the collateral. In these cases, management used the current fair value of the collateral, less selling cost when foreclosure was probable, instead of discounted cash flows. If management determined that the value of the impaired loan was less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment was recognized through an allowance for credit losses estimate or a charge-off to the allowance for credit losses. The following table includes the recorded investment and unpaid principal balances for impaired loans, excluding PCI loans, with the associated allowance for credit losses amount, if applicable, as of December 31, 2022, as determined in accordance with ASC 310-30 prior to the adoption of ASU 2016-13. Also presented is the average recorded investment in the impaired loans and the related amount of interest income recognized during the time within the period that the impaired loans were impaired. Total impaired loans of $4.8 million at December 31, 2022 do not include PCI loans of $1.1 million, which are net of a remaining purchase discount of $414 thousand. At December 31, 2022, there were no specific reserves related to PCI loans included in the allowance for credit losses. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unpaid ​ Interest ​ ​ ​ ​ Average ​ ​ Recorded ​ Principal ​ Income ​ Specific ​ Recorded December 31, 2022 Investment Balance Recognized Reserve Investment ​ ​ Dollars in Thousands Impaired loans with specific reserves: ​ ​ ​ ​ ​ Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction and land development ​ $ 11 ​ $ 24 ​ $ 1 ​ $ 8 ​ $ 18 Residential real estate ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Nonresidential ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Home equity loans ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Commercial ​ ​ 326 ​ ​ 337 ​ ​ 45 ​ ​ 282 ​ ​ 368 Consumer and other loans ​ — ​ — ​ — ​ — ​ — Total impaired loans with specific reserves ​ ​ 337 ​ ​ 361 ​ ​ 46 ​ ​ 290 ​ ​ 386 Impaired loans with no specific reserve: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction and land development ​ ​ 248 ​ ​ 248 ​ ​ 2 ​ ​ — ​ ​ 249 Residential real estate ​ ​ 1,748 ​ ​ 1,748 ​ ​ 42 ​ ​ — ​ ​ 1,797 Nonresidential ​ ​ 2,442 ​ ​ 2,442 ​ ​ 301 ​ ​ — ​ ​ 3,932 Home equity loans ​ ​ 54 ​ ​ 54 ​ ​ 2 ​ ​ — ​ ​ 53 Commercial ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Consumer and other loans ​ — ​ — ​ — ​ — ​ — Total impaired loans with no specific reserve ​ ​ 4,492 ​ ​ 4,492 ​ ​ 347 ​ ​ — ​ ​ 6,031 TOTAL ​ $ 4,829 ​ $ 4,853 ​ $ 393 ​ $ 290 ​ $ 6,417 ​ All acquired loans were initially recorded at fair value at the acquisition date. Prior to the adoption of ASU 2016-13, the outstanding balance and the carrying amount of acquired loans included in the consolidated balance sheets are as follows: ​ ​ ​ ​ ​ Dollars in Thousands December 31, 2022 Accountable for under ASC 310-30 (PCI loans) ​ Outstanding balance ​ $ 1,470 Carrying amount ​ 1,056 Accountable for under ASC 310-20 (non-PCI loans) ​ ​ Outstanding balance ​ $ 137,106 Carrying amount ​ 135,792 Total acquired loans ​ ​ Outstanding balance ​ $ 138,576 Carrying amount ​ 136,848 ​ The following table provides changes in accretable yield for all acquired loans accounted for under ASC 310-20 for the six months ended June 30, 2022: ​ ​ ​ ​ ​ Dollars in Thousands June 30, 2022 Beginning balance ​ $ 1,896 Accretion ​ (392) Other changes, net ​ ​ — Ending balance ​ $ 1,504 ​ During the three and six months ended June 30, 2022, the Company recorded $19 thousand and $55 thousand, respectively, in accretion on acquired loans accounted for under ASC 310-30. The Company had no commitments to loan additional funds to the borrowers of restructured, impaired, or nonaccrual loans as of June 30, 2023 and December 31, 2022. Concentration of Risk The Company makes loans to customers located primarily within Anne Arundel, Charles, Calvert, St. Mary’s, Wicomico and Worcester Counties, Maryland, Sussex County, Delaware, Camden and Burlington Counties, New Jersey, the Greater Fredericksburg, Virginia area (Stafford County, Spotsylvania County, King George County, Caroline County, and the City of Fredericksburg, Virginia) and the Greater Washington D.C. area (the District of Columbia, Arlington County, Clarke County, Fairfax County, Fauquier County, Loudoun County, Prince William County, Warren County, and the Cities of Alexandria, Fairfax, Falls Church, Manassas, Manassas Park, and Reston, Virginia). A substantial portion of the Company’s loan portfolio consists of residential and commercial real estate mortgages. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in these areas. Off-Balance Sheet Arrangements and Commitments In the normal course of business, the Company enters into various transactions, which, in accordance with U.S. GAAP are not included in our consolidated balance sheets. The Company enters into these transactions to meet the financing needs of our customers. These transactions include commitments to extend credit and standby letters of credit, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. We minimize our exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures. The Company records an allowance for credit losses on off-balance sheet credit exposures through a charge to provision for credit losses in the Company’s Consolidated Statements of Income. The allowance for credit losses on off-balance sheet credit exposures is a liability account, calculated in accordance with ASU 2016-13, representing expected credit losses over the contractual period for which the Company is exposed to credit risk resulting from a contractual obligation to extend credit. No allowance for credit losses is recognized if the Company has the unconditional right to cancel the obligation. Off-balance sheet credit exposures primarily consist of amounts available under outstanding lines of credit and letters of credit. For the period of exposure, the estimate of expected credit losses considers both the likelihood that funding will occur and the amount expected to be funded over the estimated remaining life of the commitment or other off-balance sheet exposure. The likelihood and expected amount of funding are based on historical utilization rates. The amount of the allowance for credit losses represents management's best estimate of expected credit losses on commitments expected to be funded over the contractual life of the commitment. Estimating credit losses on amounts expected to be funded uses the same methodology as described above for loans as if such commitments were funded. At June 30, 2023 and December 31, 2022, the allowance for credit losses on off-balance sheet credit exposures totaled $669 thousand and $265 thousand, respectively, and was included in other liabilities on the Company’s consolidated balance sheets. The following table details activity in the allowance for credit losses on off-balance sheet commitments for the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, Dollars in Thousands ​ ​ ​ 2023 ​ ​ 2022 ​ ​ 2023 ​ ​ 2022 Beginning balance ​ ​ $ 658 ​ $ 265 ​ $ 265 ​ $ 265 Impact of adopting ASC 326 ​ ​ ​ - ​ ​ - ​ ​ 512 ​ ​ - Provision for (recovery of) credit losses ​ ​ ​ 11 ​ ​ - ​ ​ (108) ​ ​ - Ending balance ​ ​ $ 669 ​ $ 265 ​ $ 669 ​ $ 265 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Borrowings and Notes Payable

Borrowings and Notes Payable	6 Months Ended
	Jun. 30, 2023
Borrowings and Notes Payable
Borrowings and Notes Payable	Note 4. Borrowings and Notes Payable The Company owns capital stock of the FHLB as a condition for $415.4 million convertible advance credit facilities from the FHLB. As of June 30, 2023, the Company had remaining credit availability of $364.5 million under these facilities. The following tables detail the advances the Company had outstanding with the FHLB at June 30, 2023 and December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 Dollars in Thousands ​ Outstanding Balance Interest Rate Maturity Date Interest Payment Fixed rate hybrid ​ $ 9,900 1.29 % March 2024 Fixed, paid quarterly Fixed rate hybrid ​ ​ 9,900 ​ 1.29 % March 2024 Fixed, paid quarterly Daily rate credit ​ ​ 21,100 ​ 5.32 % December 2023 ​ Variable, paid daily Fixed rate credit ​ 10,000 5.24 % July 2023 Fixed, paid monthly Total advances ​ $ 50,900 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 Dollars in Thousands ​ ​ Outstanding Balance Interest Rate Maturity Date Interest Payment Fixed rate hybrid ​ $ 9,900 ​ 1.29 % March 2024 Fixed, paid quarterly Fixed rate hybrid ​ ​ 9,900 ​ 1.29 % March 2024 Fixed, paid quarterly Daily rate credit ​ 42,000 4.57 % December 2023 Variable, paid daily Total advances ​ $ 61,800 ​ The Company had short-term borrowings outstanding with the FHLB of $31.1 million at June 30, 2023. Average short-term borrowings outstanding under the FHLB approximated $28.9 million and $31.5 million during the three and six months ended June 30, 2023, respectively. The Company had short-term borrowings outstanding with the FHLB of $42.0 million at December 31, 2022. Average short-term borrowings outstanding under the FHLB approximated $263 thousand during the year ended December 31, 2022. Borrowings with the FHLB are considered short-term if they have an original maturity of less than a year. The Company has pledged a portion of its residential and commercial mortgage loan portfolio as collateral for these credit facilities. The lendable collateral value outstanding on these pledged loans totaled approximately $291.0 million and $296.7 million at June 30, 2023 and December 31, 2022, respectively. In addition to the FHLB credit facilities, in January 2018, the Company entered into a subordinated loan agreement for an aggregate principal amount of $4.5 million, net of issuance costs, to fund the acquisition of Liberty. Interest-only payments are due quarterly at 6.875% per annum, and the outstanding principal balance matures in April 2028. In June 2020, the Company entered into a subordinated loan agreement for an aggregate principal amount of $18.1 million, net of issuance costs, to provide capital to support organic growth or growth through strategic acquisitions and capital expenditures. The subordinated notes will initially bear interest at 6.000% per annum, beginning June 25, 2020 to but excluding July 1, 2025, payable semi-annually in arrears. From and including July 1, 2025 to but excluding July 1, 2030, or an earlier redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three month SOFR plus 590 basis points, payable quarterly in arrears. Beginning on July 1, 2025 through maturity, the subordinated notes may be redeemed, at the Company’s option, on any scheduled interest payment date. The subordinated notes will mature on July 1, 2030. The subordinated notes are subject to customary representations, warranties and covenants made by the Company and the purchasers. Partners owns a one-half one-half one-half one-half on the balance sheet net of a discount of $15 thousand. The loan was refinanced on April 30, 2015 with a twenty-five year amortization. The interest rate is fixed at 3.60% for the first 10 years, and then becomes a variable rate of 3.0% plus the 10-year Treasury rate until maturity. The Company provides JMC a warehouse line of credit, which is eliminated in consolidation. In addition, JMC has a warehouse line of credit with another financial institution in the amount of $3.0 million. The interest rate is the weekly average of the one month LIBOR plus 2.250%, rounded to the nearest 0.125% (7.750% at June 30, 2023). The rate is subject to change the first of every month. Amounts borrowed are collateralized by a security interest in the mortgage loans financed under the line and are payable upon demand. The warehouse line of credit is set to renew or mature on March 1, 2024. There was no balance outstanding at June 30, 2023 or December 31, 2022. Interest expense on the warehouse lines of credit was $7 thousand and $23 thousand for the three and six months ended June 30, 2023, respectively, and $15 thousand and $29 thousand for the three and six months ended June 30, 2022, respectively. The proceeds of these long-term borrowings were generally used to purchase higher yielding investment securities, fund additional loans, redeem preferred stock, or fund acquisitions. Additionally, the Company has secured credit availability of $5.0 million and unsecured credit availability of $144.0 million with various correspondent banks for short-term liquidity needs, if necessary. The secured facility must be collateralized by specific securities at the time of any usage. At June 30, 2023, there were no borrowings outstanding fair value The Company has pledged investment securities AFS with a combined amortized cost and fair value of $3.3 million and $2.7 million, respectively, with the FRB to secure Discount Window borrowings at June 30, 2023. The combined amortized cost and fair value of these pledged investment securities AFS were $3.4 million and $2.8 million, respectively, at December 31, 2022. At June 30, 2023 and December 31, 2022, there were no outstanding borrowings under these facilities. Maturities of debt at June 30, 2023 are as follows (dollars in thousands): ​ ​ ​ ​ ​ 2023 $ 31,089 2024 ​ 19,778 2025 ​ — 2026 ​ — 2027 ​ ​ — Thereafter ​ 22,873 ​ ​ $ 73,740 ​

Lease Commitments

Lease Commitments	6 Months Ended
	Jun. 30, 2023
Lease Commitments
Lease Commitments	Note 5. Lease Commitments The Company accounts for leases in accordance with ASU 2016-02, Leases (Topic 842) Certain leases include options The following tables present information about the Company’s leases as of the dates and for the periods noted below: ​ ​ ​ ​ ​ ​ ​ ​ Dollars in Thousands June 30, 2023 December 31, 2022 ​ Balance Sheet ​ ​ ​ ​ ​ ​ ​ Operating Lease Amounts ​ ​ ​ ​ ​ ​ ​ Right-of-use asset ​ $ 4,826 ​ $ 5,065 ​ Lease liability ​ 5,230 ​ ​ 5,465 ​ Finance Lease Amounts ​ ​ ​ ​ ​ ​ ​ Right-of-use asset ​ $ 1,482 ​ $ 1,550 ​ Lease liability ​ ​ 1,941 ​ ​ 2,006 ​ ​ ​ ​ ​ ​ ​ ​ ​ Supplemental balance sheet information ​ ​ ​ ​ ​ ​ ​ Weighted average lease term - Operating Leases (Yrs.) ​ 7.60 ​ ​ 7.59 ​ Weighted average lease term - Finance Leases (Yrs.) ​ 10.59 ​ ​ 11.05 ​ Weighted average discount rate - Operating Leases (1) ​ ​ 2.41 % ​ 2.31 % Weighted average discount rate - Finance Leases (1) ​ ​ 2.84 % ​ 2.84 % ​ ​ ​ ​ ​ ​ ​ ​ Income Statement ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ June 30, 2023 ​ June 30, 2022 ​ Operating lease cost classified as premises and equipment ​ $ 250 ​ $ 286 ​ Finance lease cost classified as interest on borrowings ​ ​ 14 ​ ​ 15 ​ Six Months Ended ​ ​ ​ ​ ​ ​ ​ Operating lease cost classified as premises and equipment ​ $ 510 ​ $ 572 ​ Finance lease cost classified as interest on borrowings ​ ​ 28 ​ ​ 30 ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating outgoing cash flows from operating leases ​ $ 486 ​ $ 514 ​ Operating outgoing cash flows from finance leases ​ $ 92 ​ $ 89 ​ (1) The discount rate was developed by using the fixed rate credit advance borrowing rate at the FHLB of Atlanta for a term correlating to the remaining life of each lease. Management believes this rate closely mirrors its incremental borrowing rate for similar terms. Minimum lease payments at June 30, 2023, for the next five years and thereafter, assuming renewal options are exercised, are approximately as follows: ​ ​ ​ ​ ​ ​ Dollars in Thousands Operating Leases: ​ ​ ​ One year or less ​ $ 836 One to three years ​ 1,362 Three to five years ​ 1,065 Over 5 years ​ 2,606 Total undiscounted cash flows ​ 5,869 Less: Discount ​ (639) Lease Liabilities ​ $ 5,230 ​ ​ ​ ​ Finance Leases: ​ ​ ​ One year or less ​ $ 191 One to three years ​ ​ 403 Three to five years ​ ​ 408 Over 5 years ​ ​ 1,263 Total undiscounted cash flows ​ ​ 2,265 Less: Discount ​ ​ (324) Lease Liabilities ​ $ 1,941 ​

Stock Option Plans

Stock Option Plans	6 Months Ended
	Jun. 30, 2023
Stock Option Plans
Stock Option Plans	Note 6. Stock Option Plans Liberty Stock Option Plans In 2004, Liberty adopted the 2004 Incentive Stock Option Plan and the 2004 Non-Qualified Stock Option Plan, which were stock-based incentive compensation plans (the “Liberty Plans”). In February 2014, the Liberty Plans expired pursuant to their terms. Options under these plans had a 10-year life and vested over 5 years. Remaining options under these plans became fully vested with the signing of the Agreement of Merger with the Company in February 2018. In accordance with the terms of the Agreement of Merger between the Company and Liberty, the Liberty Plans were assumed by the Company, and the options were converted into and became an option to purchase an adjusted number of shares of the common stock of the Company at an adjusted exercise price per share. The number of shares was determined by multiplying the number of shares of Liberty common stock for which the option was exercisable by the number of shares of the Company’s common stock into which shares of Liberty common stock were convertible in the Agreement of Merger, which was 0.2857 (the “Liberty Conversion Ratio”), rounded to the next lower whole share. The exercise price was determined by dividing the exercise price per share of Liberty common stock by the Liberty Conversion Ratio, rounded up to the nearest cent. At the effective time of the merger between the Company and Liberty in 2018 (the “Liberty Merger”) there were 48,225 options outstanding at an exercise price of $1.18. These shares were converted to 13,771 options outstanding at an exercise price of $4.14. ​ A summary of stock option transactions with respect to such options for the six months ended June 30, 2023 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ Average ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ Remaining ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercise ​ Contractual ​ ​ Intrinsic ​ ​ ​ Shares ​ ​ Price ​ Life ​ ​ Value Outstanding at beginning of period ​ ​ 4,733 ​ $ 4.14 ​ 0.23 ​ ​ ​ Granted ​ ​ — ​ ​ — ​ — ​ ​ ​ Exercised ​ ​ — ​ ​ — ​ — ​ ​ ​ Forfeited ​ ​ (4,733) ​ ​ 4.14 ​ — ​ ​ ​ Outstanding at end of period ​ ​ — ​ $ — ​ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Options exercisable at June 30, 2023 ​ ​ — ​ $ — ​ ​ ​ ​ ​ ​ Partners Stock Option Plan In 2015, Partners adopted the 2015 Stock Option Plan (the “2015 Partners Plan”), which allowed both incentive stock options and nonqualified stock options to be granted. The exercise price of each stock option equaled the market price of Partners' common stock on the date of grant and a stock option’s maximum term was 10 years. Stock options granted in the years ended December 31, 2018 and 2017 vested over 3 years. Partners’ previous stock compensation plan (the “2008 Partners Plan”) provided for the grant of share-based awards in the form of incentive stock options and nonqualified stock options to Partners’ directors, officers and employees. In April 2015, the 2008 Partners Plan was terminated and replaced with the 2015 Partners Plan. Stock options outstanding prior to April 2015 were granted under the 2008 Partners Plan and became subject to the provisions of the 2015 Partners Plan. The 2008 Partners Plan also provided for stock options to be granted to seed investors as a reward for the contribution to organizational funds which were at risk if Partners’ organization had not been successful. Under the 2008 Partners Plan, Partners granted stock options to seed investors in 2008, which were fully vested upon the date of the grant. As a result of the acquisition of Partners in 2019 through an exchange of shares in an all stock transaction (the “Partners Share Exchange”), each stock option (the "Partners Options"), whether vested or unvested, issued and outstanding immediately prior to the effective time under the 2008 Partners Plan or the 2015 Partners Plan and together with the 2008 Partners Plan, (the "Partners Stock Plans"), immediately 100% vested, to the extent not already vested, and converted into and became stock options to purchase Company common stock. In addition, the Company assumed each Partners Stock Plan, and assumed each Partners Option in accordance with the terms and conditions of the Partners Stock Plans pursuant to which it was issued. As such, Partners Options to acquire 149,200 shares of Partners’ common stock at a weighted average exercise price of $10.52 per share were converted into stock options to acquire 256,294 shares of the Company’s common stock at a weighted average exercise price of $6.13 per share. The number of shares was determined by multiplying the number of shares of Partners’ common stock for which the option was exercisable by the number of shares of the Company common stock into which shares of Partners common stock were convertible in the Partners Share Exchange, which was 1.7179 (the “Partners Conversion Ratio”), rounded to the next lower whole share. The exercise price was determined by dividing the exercise price per share of Partners common stock by the Partners Conversion Ratio, rounded up to the nearest cent. A summary of stock option transactions with respect to such options for the six months ended June 30, 2023 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ Average ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ Remaining ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercise ​ Contractual ​ ​ Intrinsic ​ ​ ​ Shares ​ ​ Price ​ Life ​ ​ Value Outstanding at beginning of period ​ ​ 88,467 ​ $ 6.59 ​ 2.85 ​ ​ ​ Granted ​ ​ — ​ ​ — ​ — ​ ​ ​ Exercised ​ ​ (11,853) ​ ​ 5.83 ​ — ​ ​ ​ Forfeited ​ ​ (1,546) ​ ​ 5.83 ​ — ​ ​ ​ Outstanding at end of period ​ ​ 75,068 ​ $ 6.73 ​ 2.85 ​ $ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Options exercisable at June 30, 2023 ​ ​ 75,068 ​ $ 6.73 ​ ​ ​ ​ ​ ​ The intrinsic value represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock options exceeds the exercise price) that would have been received by the holders had they exercised their stock options on June 30, 2023. At June 30, 2023, the stock options had no intrinsic value as the current market value of the underlying stock options did not exceed the exercise price. As stated in Note 1 – Nature of Business and Its Significant Accounting Policies, the Company follows ASC 718-10 which requires that stock-based compensation to employees and directors be recognized as compensation cost in the income statement based on their fair values on the measurement date, which, for the Company, is the date of the grant. All stock option expenses had been fully recognized prior to 2020. As such, there was no expense recorded related to stock options during the three or six months ended June 30, 2023 or 2022.

Incentive Stock Plan

Incentive Stock Plan	6 Months Ended
	Jun. 30, 2023
Incentive Stock Plan
Incentive Stock Plan	Note 7. Incentive Stock Plan At the 2021 annual meeting of shareholders held on May 19, 2021 (the “2021 Annual Meeting”), the Company’s shareholders approved the Partners Bancorp 2021 Incentive Stock Plan (the “2021 Incentive Stock Plan”), which the Company’s Board of Directors had adopted, subject to shareholder approval, on January 27, 2021, based on the recommendation of the Compensation Committee of the Company’s Board of Directors (the “Committee”). The 2021 Incentive Stock Plan became effective upon shareholder approval at the 2021 Annual Meeting. The 2021 Incentive Stock Plan authorizes the granting of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards and performance units to key employees and non-employee directors, including members of advisory boards, of the Company and certain of its subsidiaries, as determined by the Committee. Subject to the right of the Board of Directors to terminate the 2021 Incentive Stock Plan at any time, awards may be granted under the 2021 Incentive Stock Plan until May 18, 2031. Subject to adjustment in the event of certain changes in the Company’s capital structure, the maximum number of shares of the Company’s common stock that may be issued under the 2021 Incentive Stock Plan is 1,250,000. On April 28, 2021, the Company’s Board of Directors granted 58,824 shares of restricted stock to two senior officers of Partners in accordance with Nasdaq Listing Rule 5635(c)(4) as inducements material to each of them accepting employment with Partners. All of these shares were subject to time vesting in three equal annual installments beginning on April 28, 2022. On December 10, 2021, in accordance with the terms and conditions set forth in the definitive agreement and plan of merger (the “OCFC Merger Agreement”) with OceanFirst Financial Corp. (“OCFC”), the Company’s Board of Directors approved to immediately vest these outstanding and unvested awards. Although the Company and OCFC mutually agreed to terminate the OCFC Merger Agreement and transactions contemplated thereby on November 9, 2022, the accelerated vesting of these awards was not contingent upon the merger closing. Each grantee irrevocably and unconditionally covenanted and agreed to not transfer, convey or sell any share of Company common stock, along with certain other terms, in respect of such accelerated vesting of the restricted stock awards. On October 12, 2021, the Company’s Board of Directors granted 68,000 shares of restricted stock to employees of Partners under the 2021 Incentive Stock Plan. All of these shares were subject to time vesting in three equal annual installments beginning on June 1, 2022. On December 10, 2021, in accordance with the terms and conditions set forth in the OCFC Merger Agreement, the Company’s Board of Directors approved to immediately vest 40,000 of these outstanding and unvested awards. Although the Company and OCFC mutually agreed to terminate the OCFC Merger Agreement and transactions contemplated thereby on November 9, 2022, the accelerated vesting of these awards was not contingent upon the merger closing. Each grantee of awards that were subject to the accelerated vesting provisions irrevocably and unconditionally covenanted and agreed to not transfer, convey or sell any share of Company common stock, along with certain other terms, in respect of such accelerated vesting of the restricted stock awards. On October 27, 2021, the Company’s Board of Directors granted 27,000 shares of restricted stock to a director of the Company and Partners under the 2021 Incentive Stock Plan. All of these shares were subject to time vesting in three equal annual installments beginning on June 1, 2022. On December 10, 2021, in accordance with the terms and conditions set forth in the OCFC Merger Agreement, the Company’s Board of Directors approved to immediately vest these outstanding and unvested awards. Although the Company and OCFC mutually agreed to terminate the OCFC Merger Agreement and transactions contemplated thereby on November 9, 2022, the accelerated vesting of these awards was not contingent upon the merger closing. The grantee irrevocably and unconditionally covenanted and agreed to not transfer, convey or sell any share of Company common stock, along with certain other terms, in respect of such accelerated vesting of the restricted stock awards. As of June 30, 2023, there were 9,338 non-vested shares related to restricted stock awards. A schedule of non-vested shares related to restricted stock awards as of June 30, 2023 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Employees ​ ​ ​ ​ Weighted ​ ​ ​ ​ Average ​ ​ Shares ​ Fair Value Nonvested Awards December 31, 2022 18,669 $ 8.99 Awarded in 2023 — ​ — Vested in 2023 ​ (9,331) ​ ​ 8.99 Nonvested Awards June 30, 2023 9,338 ​ $ 8.99 ​ As a result of applying the provisions of ASC 718-10, during the three and six months ended June 30, 2023, the Company recognized restricted stock-based compensation expense of $23 thousand, or $17 thousand net of tax, and $47 thousand, or $35 thousand net of tax, respectively, related to the restricted stock awards. Restricted stock-based compensation expense is accounted for using the fair value of the Company’s common stock on the date the restricted shares were awarded, which was $7.65 for the awards granted on April 28, 2021, $8.99 for the awards granted on October 12, 2021, and $8.72 for the awards granted on October 27, 2021

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2023
Earnings Per Share
Earnings Per Share	Note 8. Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income or loss by the weighted average number of shares outstanding during the period. Diluted EPS is computed using the weighted average number of shares outstanding during the period, including the effect of all potentially dilutive shares outstanding attributable to stock instruments. Applicable guidance requires that outstanding, unvested share based payment awards that contain voting rights and rights to nonforfeitable dividends participate in undistributed earnings with common shareholders. Accordingly, the weighted average number of shares of the Company’s common stock used in the calculation of basic and diluted net income per common share includes unvested shares of the Company’s outstanding restricted common stock. The following tables present basic and diluted EPS for the three and six months ended June 30, 2023 and 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Income Applicable ​ ​ ​ ​ ​ ​ to Basic Earnings ​ Weighted Average ​ Earnings (Dollars and amounts in thousands, except per share data) ​ Per Common Share ​ Shares Outstanding ​ Per Share For the three months ended June 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic EPS ​ $ 3,764 ​ ​ 17,986 ​ $ 0.209 Effect of dilutive stock awards ​ ​ — ​ ​ — ​ ​ — Diluted EPS ​ $ 3,764 ​ ​ 17,986 ​ $ 0.209 ​ ​ ​ ​ ​ ​ ​ ​ For the six months ended June 30, 2023 ​ ​ ​ ​ ​ ​ Basic EPS ​ $ 7,094 ​ ​ 17,985 ​ $ 0.394 Effect of dilutive stock awards ​ ​ — ​ ​ 9 ​ ​ — Diluted EPS ​ $ 7,094 ​ ​ 17,994 ​ $ 0.394 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended June 30, 2022 ​ ​ ​ ​ ​ ​ ​ Basic EPS ​ $ 3,179 ​ ​ 17,962 ​ $ 0.177 Effect of dilutive stock awards ​ ​ — ​ ​ 32 ​ ​ — Diluted EPS ​ $ 3,179 ​ ​ 17,994 ​ $ 0.177 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the six months ended June 30, 2022 ​ ​ ​ ​ ​ ​ Basic EPS ​ $ 5,288 ​ ​ 17,960 ​ $ 0.294 Effect of dilutive stock awards ​ ​ — ​ ​ 73 ​ ​ (0.001) Diluted EPS ​ $ 5,288 ​ ​ 18,033 ​ $ 0.293 ​

Regulatory Capital Requirements

Regulatory Capital Requirements	6 Months Ended
	Jun. 30, 2023
Regulatory Capital Requirements
Regulatory Capital Requirements	Note 9. Regulatory Capital Requirements The Company’s Subsidiaries are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company’s Subsidiaries must meet specific capital adequacy guidelines that involve quantitative measures of the Company’s Subsidiaries’ assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s Subsidiaries’ capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weighting, and other factors. Federal banking regulations also impose regulatory capital requirements on bank holding companies. Under the small bank holding company policy statement of the Federal Reserve, which applies to certain bank holding companies with consolidated total assets of less than $3 billion, the Company is not subject to regulatory capital requirements. On September 17, 2019, the FDIC finalized a rule that introduces an optional simplified measure of capital adequacy for qualifying community banking organizations (i.e., the community bank leverage ratio (CBLR) framework), as required by the Economic Growth, Regulatory Relief and Consumer Protection Act. The CBLR framework is designed to reduce burden by removing the requirements for calculating and reporting risk-based capital ratios for qualifying community banking organizations that opt into the framework. In order to qualify for the CBLR framework, a community banking organization must have a Tier 1 leverage ratio of at least 9%, less than $10 billion in total consolidated assets, and limited amounts of off-balance-sheet exposures and trading assets and liabilities. A qualifying community banking organization that opts into the CBLR framework and meets all requirements under the framework will be considered to have met the well-capitalized ratio requirements under the Prompt Corrective Action regulations and will not be required to report or calculate risk-based capital. The Company has elected not to opt into the CBLR framework at this time. Quantitative measures established by regulation to ensure capital adequacy require the Company’s Subsidiaries to maintain minimum amounts and ratios (as defined in the regulations) of total and Tier 1 capital to risk-weighted assets, Tier 1 capital to average assets, and common equity Tier 1 capital to risk-weighted assets. Management believes as of June 30, 2023 that the Company’s Subsidiaries met all capital adequacy requirements to which they are subject. As of June 30, 2023, the most recent notification from the FDIC categorized the Company’s Subsidiaries as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Company’s Subsidiaries must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 leverage and common equity Tier 1 risk-based ratios. There are no conditions or events since that notification that management believes have changed the Company’s Subsidiaries’ categories. The Common Equity Tier 1, Tier 1 and Total capital ratios are calculated by dividing the respective capital amounts by risk-weighted assets. Risk-weighted assets are calculated based on regulatory requirements and include total assets, with certain exclusions, allocated by risk weight category, and certain off-balance-sheet items, among other things. The leverage ratio is calculated by dividing Tier 1 capital by adjusted quarterly average total assets, which exclude goodwill and other intangible assets, among other things. The Basel III Capital Rules require the Company’s Subsidiaries to maintain (i) a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of at least 4.5%, plus a 2.5% capital conservation buffer (which is added to the 4.5% Common Equity Tier 1 capital ratio, effectively resulting in a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of at least 7.0%), (ii) a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio, effectively resulting in a minimum Tier 1 capital ratio of 8.5%), (iii) a minimum ratio of Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets of at least 8.0%, plus the capital conservation buffer (which is added to the 8.0% Total capital ratio, effectively resulting in a minimum Total capital ratio of 10.5%) and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average quarterly assets. The implementation of the capital conservation buffer became fully phased in on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress and, as detailed above, effectively increases the minimum required risk-weighted capital ratios. Banking institutions with a ratio of Common Equity Tier 1 capital to risk-weighted assets below the effective minimum (4.5% plus the capital conservation buffer and, if applicable, the countercyclical capital buffer) will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. The following table presents actual and required capital ratios as of June 30, 2023 and December 31, 2022 for the Company’s Subsidiaries under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of June 30, 2023 and December 31, 2022 based on the fully phased-in provisions of the Basel III Capital Rules. Capital levels required to be considered well capitalized are based on prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. A comparison of the Company’s Subsidiaries’ capital amounts and ratios as of June 30, 2023 and December 31, 2022 with the minimum requirements are presented below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ To Be ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Well Capitalized ​ ​ ​ ​ ​ ​ ​ For Capital ​ Under Prompt ​ ​ ​ ​ ​ ​ ​ Adequacy ​ Corrective Action In Thousands ​ Actual ​ Purposes ​ Provisions ​ Amount Ratio Amount Ratio Amount Ratio As of June 30, 2023 ​ ​ ​ ​ Total Capital Ratio ​ ​ ​ ​ (To Risk Weighted Assets) ​ ​ ​ ​ The Bank of Delmarva ​ $ 104,602 14.0 % $ 78,573 10.5 % $ 74,832 10.0 % Virginia Partners Bank ​ 65,379 11.1 % 62,077 10.5 % 59,121 10.0 % Tier 1 Capital Ratio ​ ​ ​ ​ ​ ​ ​ ​ ​ (To Risk Weighted Assets) ​ ​ ​ ​ ​ ​ ​ ​ ​ The Bank of Delmarva ​ 95,238 12.7 % 63,607 8.5 % 59,865 8.0 % Virginia Partners Bank ​ 60,092 10.2 % 50,253 8.5 % 47,297 8.0 % Common Equity Tier I Ratio ​ ​ ​ ​ ​ ​ ​ ​ ​ (To Risk Weighted Assets) ​ ​ ​ ​ ​ ​ ​ ​ ​ The Bank of Delmarva ​ 95,238 12.7 % 52,382 7.0 % 48,640 6.5 % Virginia Partners Bank ​ 60,092 10.2 % 41,385 7.0 % 38,429 6.5 % Tier 1 Leverage Ratio ​ ​ ​ ​ ​ ​ ​ ​ ​ (To Average Assets) ​ ​ ​ ​ ​ ​ ​ ​ ​ The Bank of Delmarva ​ 95,238 10.6 % 36,056 4.0 % 45,070 5.0 % Virginia Partners Bank ​ 60,092 9.5 % 25,330 4.0 % 31,662 5.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2022 ​ ​ ​ ​ Total Capital Ratio ​ ​ ​ ​ (To Risk Weighted Assets) ​ ​ ​ ​ The Bank of Delmarva ​ $ 98,910 13.4 % $ 77,763 10.5 % $ 74,060 10.0 % Virginia Partners Bank ​ ​ 63,558 11.3 % ​ 58,862 10.5 % ​ 56,059 10.0 % Tier 1 Capital Ratio ​ ​ ​ ​ ​ ​ ​ ​ ​ (To Risk Weighted Assets) ​ ​ ​ ​ ​ ​ ​ ​ ​ The Bank of Delmarva ​ 89,645 12.1 % 62,951 8.5 % 59,248 8.0 % Virginia Partners Bank ​ ​ 58,895 10.5 % ​ 47,650 8.5 % ​ 44,848 8.0 % Common Equity Tier I Ratio ​ ​ ​ ​ ​ ​ ​ ​ ​ (To Risk Weighted Assets) ​ ​ ​ ​ ​ ​ ​ ​ ​ The Bank of Delmarva ​ 89,645 12.1 % 51,842 7.0 % 48,139 6.5 % Virginia Partners Bank ​ ​ 58,895 10.5 % ​ 39,242 7.0 % ​ 36,439 6.5 % Tier 1 Leverage Ratio ​ ​ ​ ​ ​ ​ ​ ​ ​ (To Average Assets) ​ ​ ​ ​ ​ ​ ​ ​ ​ The Bank of Delmarva ​ 89,645 9.3 % 38,416 4.0 % 48,020 5.0 % Virginia Partners Bank ​ ​ 58,895 8.9 % ​ 26,348 4.0 % ​ 32,935 5.0 % ​ As permitted by the federal banking regulatory agencies, the Company has elected the option to phase in the impact on regulatory capital of the adoption of ASU 2016-13, which was effective for the Company on January 1, 2023. The initial impact of adoption of ASU 2016-13 will be phased in the regulatory capital calculations evenly over a three year period, with 25% recognized in year one, 50% recognized in year two, and 75% recognized in year three. ​ ​ Banking regulations also limit the amount of dividends that may be paid without prior approval of the Company’s regulatory agencies. Regulatory approval is required to pay dividends, which exceed the Company’s and its Subsidiaries’ net profits for the current year plus its retained net profits for the preceding two years. At June 30, 2023 and December 31, 2022, approximately $22.8 million and $21.1 million, respectively, was available for the payment of dividends to stockholders by the Company without regulatory approval. Dividends from the Subsidiaries to the Company are also limited by the amount of retained net profits of the Subsidiaries in the current year and the preceding two years. At June 30, 2023 and December 31, 2022, approximately $27.4 million and $25.0 million, respectively, was available for the payment of dividends to the Company from the Subsidiaries without regulatory approval.

Fair Values of Financial Instru

Fair Values of Financial Instruments	6 Months Ended
	Jun. 30, 2023
Fair Values of Financial Instruments
Fair Values of Financial Instruments	Note 10. Fair Values of Financial Instruments FASB ASC 825, Financial Instruments The estimated fair values, and related carrying amounts, of the Company’s financial instruments are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dollars are in thousands ​ ​ ​ ​ Fair Value Measurements at June 30, 2023 ​ ​ ​ ​ ​ Quoted Prices in ​ Significant ​ Significant ​ ​ ​ ​ ​ ​ Active Markets for ​ Other ​ Unobservable ​ ​ ​ ​ ​ Carrying ​ Identical Assets ​ Observable Inputs ​ Inputs ​ ​ ​ ​ Amount (Level 1) (Level 2) (Level 3) Balance Financial assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and due from banks ​ $ 16,011 ​ $ 16,011 ​ $ — ​ $ — ​ $ 16,011 Interest bearing deposits ​ 43,128 ​ 43,128 ​ — ​ — ​ 43,128 Federal funds sold ​ 17,478 ​ 17,478 ​ — ​ — ​ 17,478 Securities: ​ ​ ​ ​ ​ ​ ​ Available for sale ​ 129,259 ​ — ​ 129,259 ​ — ​ 129,259 Loans held for sale ​ ​ 519 ​ ​ — ​ ​ 519 ​ ​ — ​ ​ 519 Loans, net of allowance for credit losses ​ 1,261,546 ​ — ​ — ​ 1,195,625 ​ 1,195,625 Accrued interest receivable ​ 4,440 ​ — ​ 4,440 ​ — ​ 4,440 Restricted stock ​ 6,163 ​ — ​ 6,163 ​ — ​ 6,163 Other investments ​ 5,364 ​ — ​ 5,364 ​ — ​ 5,364 Bank owned life insurance ​ ​ 18,940 ​ ​ — ​ ​ 18,940 ​ ​ — ​ ​ 18,940 Financial liabilities: ​ ​ ​ ​ ​ Deposits ​ $ 1,318,482 ​ $ — ​ $ 1,006,938 ​ $ 305,849 ​ $ 1,312,787 Accrued interest payable on deposits ​ 907 ​ — ​ 907 ​ — ​ 907 FHLB advances ​ 50,900 ​ — ​ 50,308 ​ — ​ 50,308 Subordinated notes payable ​ 22,238 ​ — ​ 25,876 ​ — ​ 25,876 Other borrowings ​ ​ 602 ​ ​ — ​ ​ — ​ ​ 602 ​ ​ 602 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dollars are in thousands ​ ​ ​ ​ Fair Value Measurements at December 31, 2022 ​ ​ ​ ​ ​ Quoted Prices in ​ Significant ​ Significant ​ ​ ​ ​ ​ ​ Active Markets for ​ Other ​ Unobservable ​ ​ ​ ​ ​ Carrying ​ Identical Assets ​ Observable Inputs ​ Inputs ​ ​ ​ ​ Amount (Level 1) (Level 2) (Level 3) Balance Financial assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and due from banks ​ $ 14,678 ​ $ 14,678 ​ $ — ​ $ — ​ $ 14,678 Interest bearing deposits ​ 103,922 ​ 103,922 ​ — ​ — ​ 103,922 Federal funds sold ​ 22,990 ​ 22,990 ​ — ​ — ​ 22,990 Securities: ​ ​ ​ ​ ​ ​ ​ Available for sale ​ 133,657 ​ — ​ 133,657 ​ — ​ 133,657 Loans held for sale ​ ​ 1,314 ​ ​ — ​ ​ 1,314 ​ ​ — ​ ​ 1,314 Loans, net of allowance for credit losses ​ 1,218,551 ​ — ​ — ​ 1,165,190 ​ 1,165,190 Accrued interest receivable ​ 4,566 ​ — ​ 4,566 ​ — ​ 4,566 Restricted stock ​ 6,512 ​ — ​ 6,512 ​ — ​ 6,512 Other investments ​ 4,888 ​ — ​ 4,888 ​ — ​ 4,888 Bank owned life insurance ​ ​ 18,706 ​ ​ — ​ ​ 18,706 ​ ​ — ​ ​ 18,706 Financial liabilities: ​ ​ ​ ​ ​ Deposits ​ $ 1,339,605 ​ $ — ​ $ 1,082,084 ​ $ 249,183 ​ $ 1,331,267 Accrued interest payable on deposits ​ 267 ​ — ​ 267 ​ — ​ 267 FHLB advances ​ 61,800 ​ — ​ 60,990 ​ — ​ 60,990 Subordinated notes payable ​ 22,215 ​ — ​ 26,364 ​ — ​ 26,364 Other borrowings ​ ​ 613 ​ ​ — ​ ​ — ​ ​ 613 ​ ​ 613 ​ The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company's overall interest rate risk.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2023
Fair Value Measurements
Fair Value Measurements	Note 11. Fair Value Measurements The Company follows ASC 820-10 Fair Value Measurements and Disclosures ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820-10 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value. Fair Value Hierarchy In accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 - Level 2 - Level 3 - The following describes the valuation techniques used by the Company to measure certain financial assets recorded at fair value on a recurring basis in the financial statements: Investment Securities AFS: Investment securities AFS are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level 2). In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. Currently, all of the Company’s investment securities AFS are considered to be Level 2 securities. The following table presents the balances of financial assets measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Dollars are in thousands Level 1 Level 2 Level 3 Value June 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Securities AFS: ​ ​ ​ ​ Obligations of U.S. Government agencies and corporations ​ $ — ​ $ 15,531 ​ $ — ​ $ 15,531 Obligations of States and political subdivisions ​ — ​ 27,255 ​ — ​ 27,255 Mortgage-backed securities ​ — ​ 84,186 ​ — ​ 84,186 Subordinated debt investments ​ ​ — ​ 2,287 ​ — ​ 2,287 Total securities AFS ​ $ — ​ $ 129,259 ​ $ — ​ $ 129,259 December 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Securities AFS: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Obligations of U.S. Government agencies and corporations ​ $ — ​ $ 15,466 ​ $ — ​ $ 15,466 Obligations of States and political subdivisions ​ — ​ 27,065 ​ — ​ 27,065 Mortgage-backed securities ​ — ​ 88,740 ​ — ​ 88,740 Subordinated debt investments ​ ​ — ​ 2,386 ​ — ​ 2,386 Total securities AFS ​ $ — ​ $ 133,657 ​ $ — ​ $ 133,657 ​ Certain financial assets are measured at fair value on a nonrecurring basis in accordance with U.S. GAAP. Adjustments to the fair value of these financial assets usually result from the application of lower of cost or market accounting or write-downs of individual assets. The following describes the valuation techniques used by the Company to measure certain financial assets recorded at fair value on a nonrecurring basis in the financial statements: Loans Held for Sale: Loans held for sale are loans originated by JMC for sale in the secondary market. Loans originated for sale by JMC are recorded at lower of cost or market. No market adjustments were required at June 30, 2023 or December 31, 2022; therefore, loans held for sale were carried at cost. Because of the short-term nature, the book value of these loans approximates fair value at June 30, 2023 and December 31, 2022. Loans Individually Evaluated for Credit Losses (Impaired Loans with Specific Reserves prior to adoption of ASU 2016-13): Loans are individually evaluated for credit losses when, in the judgment of management the loan does not share similar risk characteristics with loans collectively evaluated for credit losses and based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected when due. The measurement of loss associated with collateral dependent loans can be based on either the observable market price of the loan or the fair value of the collateral. Fair value is measured based on the value of the collateral securing the loans. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. The value of real estate collateral is determined utilizing a market valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Company using observable market data (Level 2). However, if the collateral is a house or building in the process of construction or if an appraisal of the real estate property is over two years old, then the fair value is considered Level 3. The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable business’s financial statements if not considered significant. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Collateral dependent loans allocated to the allowance for credit losses are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as a provision for credit losses in the Consolidated Statements of Income. OREO: OREO is measured at fair value less cost to sell, based on an appraisal conducted by an independent, licensed appraiser outside of the Company. If the collateral value is significantly adjusted due to differences in the comparable properties, or is discounted by the Company because of marketability, then the fair value is considered Level 3. OREO is measured at fair value on a nonrecurring basis. Any initial fair value adjustment is charged against the allowance for credit losses. Subsequent fair value adjustments are recorded in the period incurred and included in “Other Expenses” in the Consolidated Statements of Income. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Dollars are in thousands Level 1 Level 2 Level 3 Value December 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Impaired loans ​ $ — ​ $ — ​ $ 3 ​ $ 3 Total ​ $ — ​ $ — ​ $ 3 ​ $ 3 ​ ​ The following table presents additional quantitative information about financial assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value as of December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Valuation ​ Unobservable ​ Range of Dollars are in thousands ​ Fair Value ​ Technique ​ Inputs ​ Inputs December 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ Impaired loans $ 3 Appraisals Discount to reflect current market conditions and estimated selling costs 8% Total ​ $ 3 ​ ​ ​ ​ ​ ​ ​

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets
Goodwill and Intangible Assets	Note 12. Goodwill and Intangible Assets The Company accounts for goodwill and other intangible assets in accordance with ASC 350. The Company records goodwill when the purchase price of an acquired entity is greater than the fair value of the identifiable tangible and intangible assets acquired minus the liabilities assumed. The Company amortizes acquired intangible assets with definite useful economic lives over their useful economic lives. On a periodic basis, management assesses whether events or changes in circumstances indicate that the carrying amount of the intangible assets may be impaired. The Company does not amortize goodwill or any acquired intangible assets with an indefinite useful economic life, but reviews them for impairment on an annual basis, or when events or changes in circumstances indicate that the carrying amounts may be impaired. The Company has performed the required goodwill impairment test and has determined that goodwill was not impaired as of June 30, 2023 or December 31, 2022. Goodwill: Core Deposit Intangible: The following table provides changes in the core deposit intangible for the six months ended June 30, 2023 and the year ended December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, Dollars in Thousands 2023 2022 Beginning balance ​ $ 1,540 ​ $ 2,060 Amortization ​ (240) ​ (520) Ending balance ​ $ 1,300 ​ $ 1,540 ​ The following table provides the remaining amortization expense for the core deposit intangible over the years indicated below: ​ ​ ​ ​ ​ ​ ​ June 30, Dollars in Thousands ​ 2023 2023 ​ $ 227 2024 ​ ​ 415 2025 ​ ​ 246 2026 ​ ​ 182 2027 ​ ​ 129 Thereafter ​ ​ 101 ​ ​ $ 1,300 ​ Net Deposits Purchased Premium and Discount: time deposits. The premium and discount on acquired time deposits will both be amortized and accreted over approximately five years. ​ The following table provides changes in the net deposit premium and discount for the six months ended June 30, 2023 and the year ended December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, Dollars in Thousands 2023 2022 Beginning balance ​ $ (3) ​ $ (9) Accretion, net ​ 1 ​ 6 Ending balance ​ $ (2) ​ $ (3) ​ The following table provides the remaining accretion for the net deposit discount over the years indicated below: ​ ​ ​ ​ ​ ​ ​ June 30, Dollars in Thousands ​ 2023 2023 ​ $ 1 2024 ​ ​ 1 ​ ​ $ 2 ​ The net effect of the amortization of premiums and accretion of discounts associated with the Company’s acquisition accounting adjustments to assets acquired and liabilities assumed had the following impact on the Consolidated Statements of Income for the periods indicated below: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ June 30, ​ 2023 2022 Three Months Ended ​ Dollars in Thousands Adjustments to net income ​ ​ ​ ​ ​ ​ Loans (1) ​ $ 177 ​ $ 118 Time deposits (2) ​ (1) ​ (2) Core deposit intangible (3) ​ ​ (119) ​ ​ (132) Note Payable (4) ​ ​ (1) ​ ​ (1) Net impact to income before taxes ​ $ 56 ​ $ (17) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ June 30, ​ 2023 2022 Six Months Ended ​ Dollars in Thousands Adjustments to net income ​ ​ ​ ​ ​ ​ Loans (1) ​ $ 288 ​ $ 448 Time deposits (2) ​ (1) ​ (5) Core deposit intangible (3) ​ ​ (240) ​ ​ (266) Note Payable (4) ​ ​ (2) ​ ​ (2) Net impact to income before taxes ​ $ 45 ​ $ 175 ​ (1) Loan discount accretion is included in the "Loans, including fees" section of "Interest Income" in the Consolidated Statements of Income. (2) Time deposit discount accretion is included in the "Deposits" section of "Interest Expense" in the Consolidated Statements of Income. (3) Core deposit intangible premium amortization is included in the "Amortization of core deposit intangible" section of "Other Expense" in the Consolidated Statements of Income. (4) Note payable discount accretion is included in the "Borrowings" section of "Interest Expense" in the Consolidated Statements of Income.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2023
Revenue Recognition
Revenue Recognition	Note 13. Revenue Recognition ​ The Company follows ASU No. 2014-09 Revenue from Contracts with Customers ​ Service Charges on Deposit Accounts ​ Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. ​ Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or at the end of the month through a direct charge to customers’ accounts. ​ Other Noninterest Income ​ Other noninterest income consists of: fees, exchange, other service charges, safe deposit box rental fees, and other miscellaneous revenue streams. Fees and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. ​ Gain or loss on sale or disposal of other assets Gain or loss on sale of OREO Gain or loss on sale of OREO is recorded when control of the property transfers to the buyer, which generally occurs at the time of transfer of the deed. If the Company finances the sale of a foreclosed property to the buyer, we assess whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the foreclosed property is derecognized and the gain or loss on sale is recorded upon transfer of control of the property to the buyer.

Transaction with LINKBANCORP, I

Transaction with LINKBANCORP, Inc.	6 Months Ended
	Jun. 30, 2023
Transaction with LINKBANCORP, Inc.
Transaction with LINKBANCORP, Inc.	Note 14. Transaction with LINKBANCORP, Inc. On February 22, 2023, the Company entered into an Agreement and Plan of Merger (the “LINK Merger Agreement”) with LINKBANCORP, Inc., a Pennsylvania corporation (“LINK”). The LINK Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, the Company will merge with and into LINK, with LINK as the surviving entity (the “Merger”). The LINK Merger Agreement further provides that immediately following the Merger, Delmarva, a Delaware chartered bank and a wholly-owned subsidiary of the Company, will merge with and into LINKBANK, a Pennsylvania chartered bank and a wholly-owned subsidiary of LINK, with LINKBANK as the surviving bank (the “Delmarva Bank Merger”). The LINK Merger Agreement also provides that immediately following the Delmarva Bank Merger, Partners, a Virginia chartered bank and a wholly-owned subsidiary of the Company, will merge with and into LINKBANK, with LINKBANK as the surviving bank (the “Partners Bank Merger” and, together with the Merger and the Delmarva Bank Merger, the “Transaction”). The LINK Merger Agreement was unanimously approved by the board of directors of each of LINK and the Company. Upon the terms and subject to the conditions of the LINK Merger Agreement, at the effective time of the Merger (the “Effective Time”), each share of common stock, par value $0.01 per share, of the Company (“Company Common Stock”) outstanding immediately prior to the Effective Time, other than certain shares held by the Company or LINK, will be converted into the right to receive 1.15 shares (the “Exchange Ratio”) of common stock, par value $0.01 per share, of LINK (“LINK Common Stock”). Holders of Company Common Stock will receive cash in lieu of fractional shares. ​ At special meetings of their respective shareholders held on June 22, 2023, shareholders of LINK and the Company each voted to approve the LINK Merger Agreement and the transactions contemplated thereby. The Merger remains subject to receipt of required regulatory approvals and certain other customary closing conditions. ​

Transaction with OceanFirst Fin

Transaction with OceanFirst Financial Corporation	6 Months Ended
	Jun. 30, 2023
Transaction with OceanFirst Financial Corporation
Transaction with OceanFirst Financial Corporation	Note 15. Transaction with OceanFirst Financial Corp. ​ On November 4, 2021, the Company, OCFC and Coastal Merger Sub Corp. (“Merger Sub”) entered into the OCFC Merger Agreement. Pursuant to the terms and subject to the conditions set forth in the OCFC Merger Agreement, (i) Merger Sub would merge with and into the Company, with the Company as the surviving entity, and (ii) immediately thereafter, the Company would merge with and into OCFC, with OCFC as the surviving entity. On November 9, 2022, the Company and OCFC entered into a Mutual Termination Agreement (the “Termination Agreement”) pursuant to which, among other things, the parties mutually agreed to terminate the OCFC Merger Agreement and transactions contemplated thereby. Each party bore its own costs and expenses in connection with the terminated transaction, and neither party paid a termination fee in connection with the termination of the OCFC Merger Agreement. The Termination Agreement also mutually released the parties from any claims of liability to one another relating to the OCFC Merger Agreement and the terminated transaction. ​

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2023
Recent Accounting Pronouncements
Recent Accounting Pronouncements	​ In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses” ​ The Company is utilizing a third-party model to tabulate its estimate of current expected credit losses, using the average historical loss methodology. In accordance with ASC 326, the Company has segmented its loan portfolio based on call report categories. The Company primarily utilizes historical loss rates for the CECL calculation based on Company-specific historical losses and peer loss history where applicable. For its reasonable and supportable forecasting of current expected credit losses over a period of twelve months, the Company analyzed a simple regression using forecasted economic metrics and historical peer loss data. To further adjust the allowance for credit losses for expected credit losses not already included within the quantitative component of the calculation, the Company may consider the following qualitative adjustment factors: concentration of credit, ability of staff, loan review, trends in loan quality, policy changes, collateral, and changes in nature and/or volume of loans. The Company’s CECL implementation process was overseen by a CECL implementation committee overseen by the Chief Credit Officer and included an assessment of data availability and gap analysis, data collection, consideration and analysis of multiple loss estimation methodologies, an assessment of relevant qualitative factors and correlation analysis of multiple potential loss drivers and their impact on the Company’s historical loss experience. During the first quarter of 2023, the Company engaged a third-party to perform a comprehensive model validation. ​ In March 2020, the FASB issued ASU No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” ASU No. 2021-01 “Reference Rate Reform (Topic 848): Scope” . ​ In October 2021, the FASB issued ASU No. 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” . ​ In March 2022, the FASB issued ASU No. 2022-02, “Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures” ​ In June 2022, the FASB issued ASU No. 2022-03 “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” ​ In December 2022, the FASB issued ASU No. 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848” ​ To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, the ASU defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The ASU is effective for all entities upon issuance. The Company is assessing ASU 2022-06 and its impact on the Company’s transition away from LIBOR for its loan and other financial instruments. ​ In July 2023, the FASB issued ASU No. 2023-03, “Presentation of Financial Statements (Topic 205), Income Statement—Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation—Stock Compensation (Topic 718)” ​

Nature of Business and Its Si_2

Nature of Business and Its Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
Nature of Business and Its Significant Accounting Policies
Principles of Consolidation	Principles of Consolidation: The consolidated financial statements include the accounts of the Company; the Subsidiaries, along with their consolidated subsidiaries: Delmarva Real Estate Holdings, LLC, a wholly owned subsidiary of Delmarva, which is a real estate holding company; Davie Circle, LLC, a wholly owned subsidiary of Delmarva, which is a real estate holding company; Delmarva BK Holdings, LLC, a wholly owned subsidiary of Delmarva, which is a real estate holding company; DHB Development, LLC, of which Delmarva previously held a 40.55% interest, and which is a real estate holding company; Bear Holdings, Inc., a wholly owned subsidiary of Partners, which is a real estate holding company; Johnson Mortgage Company, LLC (“JMC”), of which Partners owns a 51% interest, and which is a residential mortgage company; and 410 William Street, LLC, a wholly owned subsidiary of Partners, which holds investment property. During the second quarter of 2023, DHB Development, LLC was dissolved, and all remaining assets were distributed to the members, which resulted in no gain or loss to the Company. All significant intercompany accounts and transactions have been eliminated in consolidation.
Financial Statement Presentation	Financial Statement Presentation: The unaudited interim consolidated financial statements do not include all information and notes necessary for a complete presentation of financial position, results of operations, changes in stockholder's equity, and cash flows in conformity with U.S. GAAP. In the opinion of management, the unaudited interim consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the consolidated financial position at June 30, 2023 and December 31, 2022, the results of its operations for three and six months and its cash flows for the six months ended June 30, 2023 and 2022 in conformity with U.S. GAAP. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023, or for any other period.
Use of Estimates	Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Certain of the critical accounting estimates are more dependent on such judgment and in some cases may contribute to volatility in the Company’s reported financial performance should the assumptions and estimates used change over time due to changes in circumstances. The more significant areas in which management of the Company applies critical assumptions and estimates that are most susceptible to change in the short term include the calculation of the allowance for credit losses and the unrealized gain or loss on investment securities available for sale.
Adoption of New Accounting Standard in 2023	Adoption of New Accounting Standard in 2023: Effective January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” The Company adopted the CECL Standard using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Upon adoption, we recognized an after-tax cumulative effect reduction to retained earnings totaling $1.4 million, as detailed in the table below. As discussed further below, purchased credit deteriorated assets (“PCD”) were measured on a prospective basis in accordance with the CECL Standard and all purchased credit impaired (“PCI”) loans as of December 31, 2022 were considered PCD loans upon adoption. Results for reporting periods beginning after January 1, 2023 are presented under the CECL Standard while prior period amounts continue to be reported in accordance with previously applicable accounting guidance. The adoption of the CECL Standard resulted in the following adjustments to our financial statements as of January 1, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dollars in thousands ​ ​ ​ ​ Change in Consolidated Balance Sheet ​ ​ Tax Effect ​ ​ Change to Retained Earnings from Adoption of ASU 2016-13 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses ("ACL") - loans ​ ​ ​ $ 1,330 ​ $ 310 ​ $ 1,020 Adjustment related to purchased credit-deteriorated loans ​ (1) ​ ​ 9 ​ ​ - ​ ​ 9 Total ACL - loans ​ ​ ​ ​ 1,339 ​ ​ 310 ​ ​ 1,029 Adjustment to PCD Loans ​ ​ ​ ​ (9) ​ ​ - ​ ​ (9) ACL - unfunded credit commitments ​ ​ ​ ​ 512 ​ ​ 120 ​ ​ 392 Total impact of CECL adoption ​ ​ ​ $ 1,842 ​ $ 430 ​ $ 1,412 (1) Represents a gross-up of the balance sheet related to PCD loans resulting from the adoption of ASU 2016-13 on January 1, 2023. Loans designated as PCI and accounted for under Accounting Standards Codification (“ASC”) 310-30 were designated as PCD loans. In accordance with the CECL Standard, the Company did not reassess whether PCI loans met the criteria of PCD loans as of the date of adoption and determined all PCI loans were PCD loans. The Company recorded an increase to the balance of PCD loans and an increase to the allowance for credit losses for loans of $9 thousand, which represented the expected credit losses for PCD loans. The remaining non-credit discount (based on the adjusted amortized cost basis) will be accreted into interest income at the effective interest rate as of January 1, 2023 over the remaining estimated life of the loans. On January 1, 2023, the Company adopted ASU 2022-02, “Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures” In December 2018, the Board of Governors of the Federal Reserve System (the “Federal Reserve”), the Federal Deposit Insurance Corporation (“FDIC”) and the Office of Comptroller of the Currency (“OCC”) approved a final rule to address changes to credit loss accounting under U.S. GAAP, including banking organizations’ adoption of the CECL Standard. The final rule provides banking organizations the option to phase-in, over a three-year period, the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. The Company has elected to phase-in the impact of the adoption of this standard on the Company’s regulatory capital over the three-year transition period. See Note 9 – Regulatory Capital Requirements for further information.
Investment Securities Available for Sale ("AFS")	Investment Securities Available for Sale (“AFS”): Management evaluates all AFS investment securities in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. If the Company has the intent to sell the investment security or it is more likely than not that the Company will be required to sell the investment security, the investment security is written down to fair value and the entire loss is recorded in earnings. ​ If either of the above criteria is not met, the Company evaluates whether the decline in fair value is the result of credit losses or other factors. In making the assessment, the Company may consider various factors including the extent to which fair value is less than amortized cost, downgrades in the ratings of the investment security by a rating agency, the failure of the issuer to make scheduled interest or principal payments and adverse conditions specific to the investment security. If the assessment indicates that a credit loss exists, the present value of cash flows expected to be collected are compared to the amortized cost basis of the investment security and any deficiency is recorded as an allowance for credit losses, limited by the amount that the fair value is less than the amortized cost basis. Any amount of unrealized loss that has not been recorded through an allowance for credit loss is recognized in other comprehensive income (loss), net of tax. ​ Changes in the allowance for credit losses are recorded as a provision for (or recovery of) credit losses in the Consolidated Statements of Income. Losses are charged against the allowance for credit losses when management believes an AFS investment security is confirmed to be uncollectible or when either of the criteria regarding intent or requirement to sell is met. At June 30, 2023, there was no allowance for credit losses related to the AFS investment securities portfolio. Impairment may result from credit deterioration of the issuer or collateral underlying the investment security. In performing an assessment of recoverability, all relevant information is considered, including the length of time and extent to which fair value has been less than the amortized cost basis, the cause of the price decline, credit performance of the issuer and underlying collateral, and recoveries or further declines in fair value subsequent to the balance sheet date.
Restricted Stock, Equity Securities and Other Investments	Restricted Stock, Equity Securities and Other Investments: Federal Reserve Bank (“FRB”) stock, at cost, Federal Home Loan Bank (“FHLB”) stock, at cost, Atlantic Central Bankers Bank (“ACBB”) stock, at cost, and Community Bankers Bank (“CBB”) stock, at cost, are equity interests in the FRB, FHLB, ACBB, and CBB, respectively. These securities do not have a readily determinable fair value for purposes of ASC 321 “Investments-Equity Securities” Equity securities with readily determinable fair values are carried at fair value, with changes in fair value reported in net income. Any equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments. The entirety of any impairment on equity securities is recognized in earnings. Equity securities are included in “Other investments” on the Consolidated Balance Sheets. Other investments include an equity ownership of Solomon Hess SBA Loan Fund LLC, for which the value is adjusted for its pro rata share of assets in the fund. Other investments also include equity securities the Company holds with Community Capital Management in their Community Reinvestment Act (“CRA”) Qualified Investment Fund.
Bank Owned Life Insurance	Bank Owned Life Insurance: The Company has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other changes or amounts due that are probable at settlement.
Loans and the Allowance for Credit Losses	Loans and the Allowance for Credit Losses: Loans are generally carried at the amount of unpaid principal, adjusted for deferred loan fees and costs, which are amortized over the term of the loan using the effective interest rate method. Interest on loans is accrued based on the principal amounts outstanding. It is the Company’s policy to discontinue the accrual of interest when a borrower is determined to be experiencing financial difficulty or when principal or interest on the loan is delinquent for ninety days or more. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Cash collections on loans classified as nonaccrual are applied as reductions of the loan principal balance and no interest income is recognized on those loans until the principal balance has been collected. As a general rule, a nonaccrual loan may be restored to accrual status when (1) none of its principal and interest is due and unpaid, and the Company expects repayment of the remaining contractual principal and interest, or (2) when it otherwise becomes well secured and in the process of collection. The allowance for credit losses is maintained at a level believed to be adequate by management to absorb expected losses inherent in the loan portfolio and is based on the size and current risk characteristics of the loan portfolio, the concentration of credits within each segment, the effects of any changes in lending policies, procedures, including underwriting standards and collections, charge-off and recovery practices, the effects of changes in the experience, depth and ability of management, the quality of the Company’s loan review system and the degree of oversight by the Company’s Board of Directors, an assessment of individually evaluated loans and actual loss experience, the value of the underlying collateral, the condition of various market segments, both locally and nationally, and current reasonable and supportable forecasts of economic events in specific industries and geographical areas, including unemployment levels, and other pertinent factors, including regulatory guidance and general economic conditions, along with external factors such as competition and the legal environment. The Company’s allowance for credit losses incorporates forward-looking information and applies a reversion methodology beyond the reasonable and supportable forecast period of twelve months. After the forecast period, the Company’s model immediately reverts back to the historical loss rate adjusted for the quantitative factors described above for the remaining contractual life of the financial assets. Determination of the allowance for credit losses is inherently subjective, as it requires significant estimates, which may be susceptible to significant change. Loan losses are charged off against the allowance for credit losses, while recoveries of amounts previously charged off are credited to the allowance for credit losses. A provision for credit losses is charged to operations based on management's periodic evaluation of the factors previously mentioned, as well as other pertinent factors. Evaluations are conducted at least quarterly and more often if deemed necessary. Expected credit losses are estimated over the contractual term of the loans, and are adjusted for expected prepayments. The Company’s allowance for credit losses measures the expected lifetime loss using pooled assumptions and loan level details for loans that share common risk characteristics and evaluates an individual reserve in instances where the loans do not share the same risk characteristics. Loans that share common risk characteristics are considered collectively assessed. Loss estimates within the collectively assessed population are based on a combination of pooled assumptions and loan-level characteristics. Quantitative loss estimation models have been developed based largely on internal and peer historical data at the loan and portfolio levels and the economic conditions during the same time period. Expected losses for the Company’s collectively assessed loan segments are estimated using the average charge-off method, which calculates an estimate of losses based upon historical experience and is applied prospectively across the life of each loan. This method calculates future cash flows at the individual loan level based upon loan characteristics. Life calculations for each loan grouping incorporates future cash flows at the loan level, in addition to prepayment assumptions. Loans that do not share risk characteristics are evaluated on an individual basis. The individual reserve component relates to loans that have shown substantial credit deterioration as measured by risk rating and/or delinquency status. In addition, the Company has elected the practical expedient that would include loans for individual assessment consideration if the repayment of the loan is expected substantially through the operation or sale of collateral because the borrower is experiencing financial difficulty. Where the source of repayment is the sale of collateral, the specific reserve is based on the fair value of the underlying collateral, less selling costs, compared to the amortized cost basis of the loan. If the specific reserve is based on the operation of the collateral, the reserve is calculated based on the fair value of the collateral calculated as the present value of expected cash flows from the operation of the collateral, compared to the amortized cost basis. If the Company determines that the value of a collateral dependent loan is less than the recorded investment in the loan, the Company charges off the deficiency if it is determined that such amount is deemed uncollectible. The Company obtains appraisals from a pre-approved list of independent, third party appraisers located in the market in which the collateral is located. At a minimum, it is ascertained that the appraiser is currently licensed in the state in which the property is located, experienced in the appraisal of properties similar to the property being appraised, has knowledge of current real estate market conditions and financing trends, and is reputable. Independent appraisals or valuations are obtained on all individually assessed loans, and these appraisals or valuations are updated every twelve months. External valuation sources are the primary source to value collateral dependent loans; however, the Company may also utilize values obtained through other valuation sources. These alternative sources of value are used only if deemed to be more representative of value based on updated information regarding collateral resolution. The specific reserve on loans individually assessed is updated, reviewed, and approved on a quarterly basis at or near the end of each reporting period. The Company performs regular credit reviews of the loan portfolio to review the credit quality and adherence to its underwriting standards. Upon origination, each commercial loan is assigned a risk rating, with loans closer to one having less risk. This risk rating scale is the Company’s primary credit quality indicator. Loan Charge-off Policies Loans are generally fully or partially charged down to the fair value of securing collateral when: ● management deems the asset to be uncollectible; ● repayment is deemed to be made beyond the reasonable time frames; ● the asset has been classified as a loss by internal or external review; or ● the borrower has filed bankruptcy and the loss becomes evident owing to a lack of assets. Acquired Loans Loans acquired in connection with acquisitions are recorded at their acquisition date fair value with no carryover of related allowance for credit losses. Acquired loans are classified into two categories: (1) PCD loans, which are purchased financial instruments with more than insignificant credit deterioration, and (2) loans with insignificant credit deterioration (“non-PCD”). PCD loans are defined as a loan or group of loans that have experienced more than insignificant credit deterioration since origination. Non-PCD loans will have an allowance for credit losses established on the acquisition date, which is recognized in the current period provision for credit losses. For PCD loans, an allowance for credit losses is recognized on day 1 by adding it to the fair value of the loan, which is the “Day 1 amortized cost basis”. There is no provision for credit losses recognized on PCD loans because the initial allowance for credit losses is established by grossing-up the amortized cost of the PCD loan. Determining the fair value of the acquired loans involves estimating the principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. Management considers a number of factors in evaluating the acquisition date fair value including the remaining life of the acquired loans, delinquency status, estimated prepayments, payment options and other loan features, internal risk grade, estimated value of the underlying collateral and interest rate environment. ​ PCD loans are accounted for in accordance with ASC 326-20, Financial Instruments- Credit Losses- Measured at Amortized Cost (“ASC 326-20”) , if, at acquisition, the loan or pool of loans has experienced more than insignificant credit deterioration since origination. At acquisition, the Company considers several factors as indicators that an acquired loan or pool of loans has experienced more than insignificant credit deterioration. These factors include loans 30 days or more past due, loans with an internal risk grade of below average or lower, loans classified as nonaccrual by the acquired institution, and the materiality of the credit. ​ Under ASC 326-20, a group of loans with similar risk characteristics can be assessed to determine if the pool of loans is PCD. However, if a loan does not have similar risk characteristics as any other acquired loan, the loan is individually assessed to determine if it is PCD. In addition, the initial allowance for credit losses related to acquired loans can be estimated for a pool of loans if the loans have similar risk characteristics. Even if the loans were individually assessed to determine if they were PCD, they can be grouped together in the initial allowance for credit losses calculation if they share similar risk characteristics. If a PCD loan has an unfunded commitment at acquisition, the initial allowance for credit losses calculation reflects only the expected credit losses associated with the funded portion of the PCD loan. Expected credit losses associated with the unfunded commitment are included in the initial measurement of the commitment. For PCD loans, the non-credit discount or premium is allocated to individual loans as determined by the difference between the loan’s amortized cost basis and the unpaid principal balance. The non-credit premium or discount is recognized into interest income on a level yield basis over the remaining expected life of the loan. For non-PCD loans, the interest and credit discount or premium is allocated to individual loans as determined by the difference between the loan’s amortized cost basis and the unpaid principal balance. The premium or discount is recognized into interest income on a level yield basis over the remaining expected life of the loan. ​ TDRs prior to the Adoption of ASU 2022-02 Prior to the adoption of ASU 2022-02, a loan was accounted for and reported as a TDR when, for economic or legal reasons, the Company granted a concession to a borrower experiencing financial difficulty that it would not otherwise consider. Management would work with borrowers identified as being in financial difficulty to modify to more affordable terms before their loan would reach nonaccrual status. These modified terms may have included rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. A restructuring that resulted in only an insignificant delay in payment was not considered a concession. A delay may have been considered insignificant if the payments subject to the delay were insignificant relative to the unpaid principal or collateral value and the contractual amount due, or the delay in timing of the restructured payment period was insignificant relative to the frequency of the payments, the loan’s original contractual maturity or original expected duration. TDRs were designated as impaired loans because interest and principal payments would not be received in accordance with the original contract terms. TDRs that were performing and on accrual status as of the date of the modification remained on accrual status. TDRs that were nonperforming as of the date of modification generally remained as nonaccrual until the prospect of future payments in accordance with the modified loan agreement was reasonably assured, generally demonstrated when the borrower maintained compliance with the restructured terms for a predetermined period, normally at least six months. TDRs that had temporary below-market concessions remained designated as a TDR and impaired regardless of the accrual or performance status until the loan was paid off. However, if the TDR was modified in a subsequent restructure with market terms and the borrower was not currently experiencing financial difficulty, then the loan was no longer designated as a TDR. See “Adoption of New Accounting Standards in 2023” as discussed previously for further discussion related to accounting for modifications of loans to borrowers experiencing financial difficulty subsequent to the adoption of ASU 2022-02 as of January 1, 2023.
Loans Held for Sale	Loans Held for Sale: These loans consist of loans made through Partners’ majority owned subsidiary JMC. JMC is engaged in the mortgage brokerage business in which JMC originates, closes, and immediately sells mortgage loans and related servicing rights to permanent investors in the secondary market. JMC has written commitments from several permanent investors (large financial institutions) and only closes loans that meet the lending requirements of the permanent investors. Loans are made in connection with the purchase or refinancing of existing and new one to four family residences primarily in southeastern and northern Virginia. Loans are initially funded primarily by JMC’s lines of credit. With the concurrent sale and delivery of mortgage loans to the permanent investors, JMC records receivables for mortgage loans sold and recognizes the related gains and losses on such sales. The receivables for mortgage loans sold are usually satisfied within 30 days of sale, whereupon the related borrowings on the lines of credit are repaid. Because of the short holding period, these loans are carried at the lower of cost or market and no market adjustments were deemed necessary in the first two quarters of 2023 or 2022. JMC’s agreements with its permanent investors include provisions that could require JMC to repurchase loans under certain circumstances, and also provide for the assessment of fees if loans go into default or are refinanced within specified periods of time. JMC has never been required to repurchase a loan and no indemnification reserve has been recorded as of June 30, 2023 or December 31, 2022 for possible repurchases. Management does not believe that a provision for early default or refinancing cost is necessary at June 30, 2023 or December 31, 2022. JMC enters into commitments with its customers to originate loans where the interest rate on the loans is determined (locked) prior to funding. While this subjects JMC to the risk that interest rates may change from the commitment date to the funding date, JMC simultaneously enters into financial agreements (best efforts forward sales commitments) with its permanent investors giving JMC the right to deliver (put) loans to the investors at specified yields, thus enabling JMC to manage its exposure to changes in interest rates such that JMC is not subject to fluctuations in fair values of these agreements due to changes in interest rates. However, a default by a permanent investor required to purchase loans under such an agreement would expose JMC to potential fluctuation in selling prices of loans due to changes in interest rates. The fair value of rate lock commitments and forward sales commitments was considered immaterial at June 30, 2023 and December 31, 2022 and an adjustment was not recorded. Gains and losses on the sale of mortgages as well as origination fees, brokerage fees, interest rate lock-in fees and other fees paid by mortgagors are included in “Mortgage banking income, net” on the Company’s Consolidated Statements of Income.
Other Real Estate Owned ("OREO")	Other Real Estate Owned (“OREO”): OREO comprises properties acquired in partial or total satisfaction of problem loans. The properties are recorded at the lower of cost or fair value, net of estimated selling costs, at the date acquired creating a new cost basis. Losses arising at the time of acquisition of such properties are charged against the allowance for credit losses. Subsequent write-downs that may be required, and expenses of operation and gains and losses realized from the sale of OREO are included in “Other expenses” on the Company’s Consolidated Statements of Income. At June 30, 2023 and December 31, 2022, there were no properties included in OREO.
Intangible Assets and Amortization	Intangible Assets and Amortization: During the fourth quarter of 2019, the Company acquired Partners, and during the first quarter of 2018, the Company acquired Liberty Bell Bank (“Liberty”). ASC 350, Intangibles-Goodwill and Other
Goodwill	Goodwill: ​ The Company’s goodwill was recognized in connection with the acquisitions of Partners and Liberty. The Company reviews the carrying value of goodwill at least annually during the fourth quarter or more frequently if certain impairment indicators exist. In testing goodwill for impairment, the Company may first consider qualitative factors to determine whether the existence of events or circumstances lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, we conclude that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then no further testing is required and the goodwill of the reporting unit is not impaired. If the Company elects to bypass the qualitative assessment or if management concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the fair value of the reporting unit is compared with its carrying amount to determine whether an impairment exists. No impairment adjustment of goodwill was required for the six months ended June 30, 2023 or 2022 or for the year ended December 31, 2022 based on management’s assessment.
Accounting for Stock Based Compensation	Accounting for Stock Based Compensation: The Company follows ASC 718-10, Compensation—Stock Compensation
Earnings Per Share	Earnings Per Share: Basic earnings per common share are determined by dividing net income by the weighted average number of shares outstanding for each period, giving retroactive effect to stock splits and dividends. Weighted average common shares outstanding were

Nature of Business and Its Si_3

Nature of Business and Its Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2023
Nature of Business and Its Significant Accounting Policies
Schedule of impact of CECL adoption	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dollars in thousands ​ ​ ​ ​ Change in Consolidated Balance Sheet ​ ​ Tax Effect ​ ​ Change to Retained Earnings from Adoption of ASU 2016-13 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses ("ACL") - loans ​ ​ ​ $ 1,330 ​ $ 310 ​ $ 1,020 Adjustment related to purchased credit-deteriorated loans ​ (1) ​ ​ 9 ​ ​ - ​ ​ 9 Total ACL - loans ​ ​ ​ ​ 1,339 ​ ​ 310 ​ ​ 1,029 Adjustment to PCD Loans ​ ​ ​ ​ (9) ​ ​ - ​ ​ (9) ACL - unfunded credit commitments ​ ​ ​ ​ 512 ​ ​ 120 ​ ​ 392 Total impact of CECL adoption ​ ​ ​ $ 1,842 ​ $ 430 ​ $ 1,412 (1) Represents a gross-up of the balance sheet related to PCD loans resulting from the adoption of ASU 2016-13 on January 1, 2023.

Investment Securities (Tables)

Investment Securities (Tables)	6 Months Ended
	Jun. 30, 2023
Investment Securities
Schedule of investment securities available for sale	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ ​ Dollars in Thousands ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Fair ​ Cost Gains Losses Value Obligations of U.S. Government agencies and corporations ​ $ 17,191 ​ $ — ​ $ 1,660 ​ $ 15,531 Obligations of States and political subdivisions ​ 29,654 ​ 13 ​ 2,412 ​ 27,255 Mortgage-backed securities ​ 97,306 ​ — ​ 13,120 ​ 84,186 Subordinated debt investments ​ ​ 2,470 ​ ​ — ​ ​ 183 ​ ​ 2,287 ​ ​ $ 146,621 ​ $ 13 ​ $ 17,375 ​ $ 129,259 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ ​ Dollars in Thousands ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Fair ​ Cost Gains Losses Value Obligations of U.S. Government agencies and corporations ​ $ 17,115 ​ $ — ​ $ 1,649 ​ $ 15,466 Obligations of States and political subdivisions ​ 29,480 ​ 7 ​ 2,422 ​ 27,065 Mortgage-backed securities ​ 101,626 ​ — ​ 12,886 ​ 88,740 Subordinated debt investments ​ ​ 2,468 ​ ​ — ​ ​ 82 ​ ​ 2,386 ​ ​ $ 150,689 ​ $ 7 ​ $ 17,039 ​ $ 133,657
Schedule of gross unrealized losses and fair values, aggregated by investment security category and length of time that individual securities have been in a continuous unrealized loss position	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ ​ Dollars in Thousands ​ ​ Less than 12 months ​ 12 months or more ​ Total ​ ​ Fair ​ Unrealized ​ Fair ​ Unrealized ​ Fair ​ Unrealized ​ Value Loss Value Loss Value Loss Obligations of U.S. Government agencies and corporations ​ $ 7,659 ​ $ 169 ​ $ 7,872 ​ $ 1,491 ​ $ 15,531 ​ $ 1,660 Obligations of States and political subdivisions ​ 9,479 ​ 232 ​ 17,087 ​ 2,180 ​ 26,566 ​ 2,412 Mortgage-backed securities ​ 1,456 ​ 59 ​ 82,727 ​ 13,061 ​ 84,183 ​ 13,120 Subordinated debt investments ​ ​ 442 ​ ​ 37 ​ ​ 1,595 ​ ​ 146 ​ ​ 2,037 ​ ​ 183 Total investment securities with unrealized losses ​ $ 19,036 ​ $ 497 ​ $ 109,281 ​ $ 16,878 ​ $ 128,317 ​ $ 17,375 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ ​ Dollars in Thousands ​ ​ Less than 12 months ​ 12 months or more ​ Total ​ ​ Fair ​ Unrealized ​ Fair ​ Unrealized ​ Fair ​ Unrealized ​ Value Loss Value Loss Value Loss Obligations of U.S. Government agencies and corporations ​ $ 12,447 ​ $ 829 ​ $ 3,019 ​ $ 820 ​ $ 15,466 ​ $ 1,649 Obligations of States and political subdivisions ​ 23,975 ​ 1,714 ​ 1,821 ​ 708 ​ 25,796 ​ 2,422 Mortgage-backed securities ​ 34,133 ​ 2,343 ​ 54,605 ​ 10,543 ​ 88,738 ​ 12,886 Subordinated debt investments ​ 2,136 ​ ​ 82 ​ ​ — ​ ​ — ​ 2,136 ​ 82 Total investment securities with unrealized losses ​ $ 72,691 ​ $ 4,968 ​ $ 59,445 ​ $ 12,071 ​ $ 132,136 ​ $ 17,039
Schedule of maturities, calls, or repricing of securities available for sale	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ Investment Securities AFS ​ ​ Dollars in Thousands ​ ​ ​ Amortized ​ ​ Fair ​ ​ Cost ​ Value Due in one year or less ​ $ 995 ​ $ 976 Due after one year through five years ​ 17,599 ​ 16,750 Due after five years through ten years ​ 40,755 ​ 37,757 Due after ten years or more ​ 87,272 ​ 73,776 ​ ​ $ 146,621 ​ $ 129,259

Loans and Allowance for Credi_2

Loans and Allowance for Credit Losses (Tables)	6 Months Ended
	Jun. 30, 2023
Loans and Allowance for Credit Losses
Schedule of major categories of loans	​ ​ ​ ​ ​ ​ ​ ​ (Dollars in thousands) June 30, 2023 December 31, 2022 Originated Loans ​ ​ Real Estate Mortgage ​ ​ ​ ​ ​ ​ Construction and land development ​ $ 108,339 ​ $ 117,256 Residential real estate ​ ​ 218,967 ​ ​ 204,211 Nonresidential ​ ​ 671,580 ​ ​ 633,910 Home equity loans ​ ​ 22,558 ​ ​ 22,866 Commercial ​ ​ 129,728 ​ ​ 115,221 Consumer and other loans ​ 2,724 ​ 2,554 ​ ​ 1,153,896 ​ 1,096,018 Acquired Loans ​ ​ Real Estate Mortgage ​ ​ ​ ​ ​ ​ Construction and land development ​ ​ 51 ​ ​ 40 Residential real estate ​ 23,911 ​ 25,693 Nonresidential ​ ​ 81,546 ​ ​ 88,710 Home equity loans ​ ​ 7,870 ​ ​ 8,579 Commercial ​ ​ 10,273 ​ ​ 13,332 Consumer and other loans ​ 216 ​ 494 ​ ​ ​ 123,867 ​ ​ 136,848 Total Loans ​ ​ Real Estate Mortgage ​ ​ ​ ​ Construction and land development ​ ​ 108,390 ​ ​ 117,296 Residential real estate ​ ​ 242,878 ​ ​ 229,904 Nonresidential ​ ​ 753,126 ​ ​ 722,620 Home equity loans ​ ​ 30,428 ​ ​ 31,445 Commercial ​ ​ 140,001 ​ ​ 128,553 Consumer and other loans ​ 2,940 ​ 3,048 ​ ​ 1,277,763 ​ 1,232,866 Less: Allowance for credit losses ​ (16,217) ​ (14,315) ​ ​ $ 1,261,546 ​ $ 1,218,551
Schedule of allowance for credit losses by loan category	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ and Land ​ Residential ​ ​ ​ ​ ​ ​ ​ Consumer ​ ​ ​ ​ ​ ​ Dollars in Thousands Development Real Estate Nonresidential Home Equity Commercial and Other Unallocated Total Balance at December 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Purchased credit impaired loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance in allowance ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — Related loan balance ​ — ​ 696 ​ 352 ​ — ​ 8 ​ — ​ — ​ 1,056 Individually evaluated for impairment: ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance in allowance ​ $ 8 ​ $ — ​ $ — ​ $ — ​ $ 282 ​ $ — ​ $ — ​ $ 290 Related loan balance ​ 259 ​ 1,748 ​ ​ 2,442 ​ 54 ​ 326 ​ — ​ — ​ 4,829 Collectively evaluated for impairment: ​ ​ ​ ​ ​ ​ ​ ​ Balance in allowance ​ $ 1,072 ​ $ 2,059 ​ $ 8,637 ​ $ 249 ​ $ 1,636 ​ $ 76 ​ $ 296 ​ $ 14,025 Related loan balance ​ 117,037 ​ 227,460 ​ 719,826 ​ 31,391 ​ 128,219 ​ 3,048 ​ — ​ 1,226,981 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ ​ Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ and Land ​ Residential ​ ​ ​ ​ ​ ​ ​ Consumer ​ ​ ​ ​ ​ ​ Dollars in Thousands Development Real Estate Nonresidential Home Equity Commercial and Other Unallocated Total Quarter Ended ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning Balance ​ $ 2,364 ​ $ 2,556 ​ $ 7,622 ​ $ 641 ​ $ 2,357 ​ $ 47 ​ $ 509 ​ $ 16,096 Adjustment for PCD acquired loans ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Charge-offs ​ — ​ — ​ — ​ — ​ (2) ​ (14) ​ — ​ (16) Recoveries ​ — ​ 10 ​ 20 ​ 1 ​ 21 ​ 3 ​ — ​ 55 Provision/(recovery) ​ (431) ​ 144 ​ 381 ​ (14) ​ 187 ​ 11 ​ (196) ​ 82 Ending Balance ​ $ 1,933 ​ $ 2,710 ​ $ 8,023 ​ $ 628 ​ $ 2,563 ​ $ 47 ​ $ 313 ​ $ 16,217 Six Months Ended ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning Balance ​ $ 1,080 ​ $ 2,059 ​ $ 8,637 ​ $ 249 ​ $ 1,918 ​ $ 76 ​ $ 296 ​ $ 14,315 Effect of adoption of ASC 326 ​ ​ 1,919 ​ ​ 259 ​ ​ (1,579) ​ ​ 453 ​ ​ 347 ​ ​ (27) ​ ​ (33) ​ ​ 1,339 Adjustment for PCD acquired loans ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Charge-offs ​ (10) ​ ​ — ​ ​ — ​ ​ — ​ (52) ​ (29) ​ — ​ (91) Recoveries ​ — ​ ​ 27 ​ ​ 19 ​ ​ 2 ​ 93 ​ 11 ​ — ​ 152 Provision/(recovery) ​ (1,056) ​ ​ 365 ​ ​ 946 ​ ​ (76) ​ 257 ​ 16 ​ 50 ​ 502 Ending Balance ​ $ 1,933 ​ $ 2,710 ​ $ 8,023 ​ $ 628 ​ $ 2,563 ​ $ 47 ​ $ 313 ​ $ 16,217 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ ​ Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ and Land ​ Residential ​ ​ ​ ​ ​ ​ ​ Consumer ​ ​ ​ ​ ​ ​ Dollars in Thousands Development Real Estate Nonresidential Home Equity Commercial and Other Unallocated Total Year Ended ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning Balance ​ $ 1,143 ​ $ 1,893 ​ $ 9,239 ​ $ 212 ​ $ 1,885 ​ $ 36 ​ $ 248 ​ $ 14,656 Charge-offs ​ (13) ​ ​ — ​ ​ (1,555) ​ ​ (27) ​ (182) ​ (72) ​ — ​ (1,849) Recoveries ​ 1 ​ ​ 59 ​ ​ 23 ​ ​ 9 ​ 20 ​ 48 ​ — ​ 160 Provision/(recovery) ​ (51) ​ ​ 107 ​ ​ 930 ​ ​ 55 ​ 195 ​ 64 ​ 48 ​ 1,348 Ending Balance ​ $ 1,080 ​ $ 2,059 ​ $ 8,637 ​ $ 249 ​ $ 1,918 ​ $ 76 ​ $ 296 ​ $ 14,315 ​
Schedule of nonaccrual loans	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nonaccrual with ​ Nonaccrual with ​ ​ ​ ​ ​ ​ ​ ​ No Allowance ​ Allowance ​ ​ ​ ​ ​ ​ ​ ​ For Credit ​ For Credit ​ Total Nonaccrual ​ Allowance for At June 30, 2023 Losses Losses Loans Credit Losses ​ ​ Dollars in Thousands Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction and land development ​ $ 246 ​ $ — ​ $ 246 ​ $ — Residential real estate ​ ​ 1,220 ​ ​ — ​ ​ 1,220 ​ ​ — Nonresidential ​ ​ 673 ​ ​ — ​ ​ 673 ​ ​ — Home equity loans ​ ​ 52 ​ ​ — ​ ​ 52 ​ ​ — Commercial ​ ​ — ​ ​ 299 ​ ​ 299 ​ ​ 282 Consumer and other loans ​ — ​ — ​ — ​ — TOTAL ​ $ 2,191 ​ $ 299 ​ $ 2,490 ​ $ 282 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nonaccrual with ​ Nonaccrual with ​ ​ ​ ​ ​ ​ ​ ​ No Allowance ​ Allowance ​ ​ ​ ​ ​ ​ ​ ​ For Credit ​ For Credit ​ Total Nonaccrual ​ Allowance for At December 31, 2022 Losses Losses Loans Credit Losses ​ ​ Dollars in Thousands Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction and land development ​ $ 248 ​ $ 11 ​ $ 259 ​ $ 8 Residential real estate ​ ​ 1,263 ​ ​ — ​ ​ 1,263 ​ ​ — Nonresidential ​ ​ 305 ​ ​ — ​ ​ 305 ​ ​ — Home equity loans ​ ​ — ​ ​ — ​ ​ — ​ ​ — Commercial ​ ​ — ​ ​ 327 ​ ​ 327 ​ ​ 282 Consumer and other loans ​ — ​ — ​ — ​ — TOTAL ​ $ 1,816 ​ $ 338 ​ $ 2,154 ​ $ 290 ​
Schedule of loans by risk rating	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Term Loans by Origination Year ​ Revolving ​ ​ At June 30, 2023 ​ ​ Prior ​ 2019 ​ 2020 ​ 2021 ​ 2022 ​ 2023 ​ Loans ​ Total ​ ​ ​ Dollars in thousands Construction and Land Development ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 4,664 $ 1,377 $ 5,927 $ 22,432 $ 40,966 $ 18,693 $ 14,085 $ 108,144 Marginal ​ ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Substandard ​ ​ 74 ​ — ​ — ​ — ​ — ​ — ​ 172 ​ 246 ​ ​ ​ 4,738 ​ 1,377 ​ 5,927 ​ 22,432 ​ 40,966 ​ 18,693 ​ 14,257 ​ 108,390 Residential Real Estate ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 60,716 ​ 15,960 ​ 27,179 ​ 51,640 ​ 55,351 ​ 14,055 ​ 16,307 ​ 241,208 Marginal ​ ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Substandard ​ ​ 1,670 ​ — ​ — ​ — ​ — ​ — ​ — ​ 1,670 ​ ​ ​ 62,386 ​ 15,960 ​ 27,179 ​ 51,640 ​ 55,351 ​ 14,055 ​ 16,307 ​ 242,878 Nonresidential ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 212,558 ​ 65,028 ​ 88,216 ​ 170,428 ​ 174,165 ​ 30,277 ​ 10,239 ​ 750,911 Marginal ​ ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Substandard ​ ​ 505 ​ 385 ​ 1,325 ​ — ​ — ​ — ​ — ​ 2,215 ​ ​ ​ 213,063 ​ 65,413 ​ 89,541 ​ 170,428 ​ 174,165 ​ 30,277 ​ 10,239 ​ 753,126 Home Equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 139 ​ — ​ 19 ​ — ​ 25 ​ — ​ 30,148 ​ 30,331 Marginal ​ ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Substandard ​ ​ — ​ — ​ — ​ — ​ — ​ — ​ 97 ​ 97 ​ ​ ​ 139 ​ — ​ 19 ​ — ​ 25 ​ — ​ 30,245 ​ 30,428 Commercial ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 7,520 ​ 4,192 ​ 13,640 ​ 21,675 ​ 16,640 ​ 21,092 ​ 54,495 ​ 139,254 Marginal ​ ​ — ​ 115 ​ — ​ — ​ — ​ — ​ 332 ​ 447 Substandard ​ ​ 299 ​ — ​ — ​ — ​ 1 ​ — ​ — ​ 300 ​ ​ ​ 7,819 ​ 4,307 ​ 13,640 ​ 21,675 ​ 16,641 ​ 21,092 ​ 54,827 ​ 140,001 Consumer and Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ ​ 603 ​ 32 ​ 161 ​ 669 ​ 430 ​ 487 ​ 355 ​ 2,737 Marginal ​ ​ — ​ — ​ — ​ — ​ — ​ — ​ 203 ​ 203 Substandard ​ ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ ​ ​ 603 ​ 32 ​ 161 ​ 669 ​ 430 ​ 487 ​ 558 ​ 2,940 TOTAL ​ $ 288,748 $ 87,089 $ 136,467 $ 266,844 $ 287,578 $ 84,604 $ 126,433 $ 1,277,763 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Charge-offs ​ $ 3 $ — $ 10 $ — $ 50 $ 28 $ — $ 91 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ A summary of loans by risk rating as of December 31, 2022 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ and Land ​ Residential ​ ​ ​ ​ ​ ​ ​ Consumer ​ ​ ​ At December 31, 2022 Development ​ Real Estate Nonresidential Home Equity Commercial and Other Total ​ ​ Dollars in Thousands Pass ​ $ 117,037 ​ $ 228,217 ​ $ 721,225 ​ $ 31,347 ​ $ 127,241 ​ $ 2,700 ​ $ 1,227,767 Marginal ​ — ​ — ​ 872 ​ — ​ 985 ​ 348 ​ 2,205 Substandard ​ 259 ​ 1,687 ​ 523 ​ 98 ​ 327 ​ — ​ 2,894 TOTAL ​ $ 117,296 ​ $ 229,904 ​ $ 722,620 ​ $ 31,445 ​ $ 128,553 ​ $ 3,048 ​ $ 1,232,866
Schedule of loans modified under the terms of a TDR prior to adoption of ASU 2022-02	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ and Land ​ Residential ​ ​ ​ ​ ​ ​ ​ Consumer ​ ​ ​ ​ Development ​ Real Estate Nonresidential Home Equity Commercial and Other Total ​ ​ Dollars in Thousands Three months ended June 30, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of loans modified during the period ​ — ​ 1 ​ — ​ — ​ — ​ — ​ 1 Pre-modification recorded balance ​ $ — ​ $ 48,303 ​ $ — ​ $ — ​ $ — ​ $ — ​ $ 48,303 Post-modification recorded balance ​ ​ — ​ ​ 48,263 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 48,263 Six months ended June 30, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of loans modified during the period ​ ​ — ​ ​ 1 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 1 Pre-modification recorded balance ​ $ — ​ $ 48,303 ​ $ — ​ $ — ​ $ — ​ $ — ​ $ 48,303 Post-modification recorded balance ​ — ​ 48,263 ​ — ​ — ​ — ​ — ​ 48,263
Schedule of aging analysis of the recorded investment of past due financing receivables	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recorded ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment ​ ​ ​ ​ ​ ​ ​ ​ Greater than ​ ​ ​ ​ ​ ​ ​ ​ ​ >90 Days ​ ​ 30 - 59 Days ​ 60 - 89 Days ​ 90 Days ​ Total ​ Current ​ Total ​ Past Due At June 30, 2023 Past Due * Past Due ** Past Due*** Past Due Balance**** Loans and Accruing ​ ​ Dollars in Thousands Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction and land development ​ $ — ​ $ — ​ $ 246 ​ $ 246 ​ $ 108,144 ​ $ 108,390 ​ $ — Residential real estate ​ ​ 260 ​ ​ 76 ​ ​ 252 ​ ​ 588 ​ ​ 242,290 ​ ​ 242,878 ​ ​ 252 Nonresidential ​ ​ — ​ ​ 2,876 ​ ​ 673 ​ ​ 3,549 ​ ​ 749,577 ​ ​ 753,126 ​ ​ — Home equity loans ​ ​ 178 ​ ​ — ​ ​ — ​ ​ 178 ​ ​ 30,250 ​ ​ 30,428 ​ ​ — Commercial ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 140,001 ​ ​ 140,001 ​ ​ — Consumer and other loans ​ — ​ — ​ — ​ — ​ 2,940 ​ 2,940 ​ — TOTAL ​ $ 438 ​ $ 2,952 ​ $ 1,171 ​ $ 4,561 ​ $ 1,273,202 ​ $ 1,277,763 ​ $ 252 ​ * Includes ** Includes *** Includes **** Includes ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recorded ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment ​ ​ ​ ​ ​ ​ ​ ​ Greater than ​ ​ ​ ​ ​ ​ ​ ​ ​ >90 Days ​ ​ 30 - 59 Days ​ 60 - 89 Days ​ 90 Days ​ Total ​ Current ​ Total ​ Past Due At December 31, 2022 Past Due* Past Due Past Due** Past Due Balance*** Loans and Accruing ​ ​ Dollars in Thousands Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction and land development ​ $ — ​ $ — ​ $ 259 ​ $ 259 ​ $ 117,037 ​ $ 117,296 ​ $ — Residential real estate ​ ​ 949 ​ ​ 225 ​ ​ 51 ​ ​ 1,225 ​ ​ 228,679 ​ ​ 229,904 ​ ​ — Nonresidential ​ ​ 474 ​ ​ — ​ ​ 305 ​ ​ 779 ​ ​ 721,841 ​ ​ 722,620 ​ ​ — Home equity loans ​ ​ 54 ​ ​ — ​ ​ 45 ​ ​ 99 ​ ​ 31,346 ​ ​ 31,445 ​ ​ 45 Commercial ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 128,553 ​ ​ 128,553 ​ ​ — Consumer and other loans ​ — ​ 2 ​ — ​ 2 ​ 3,046 ​ 3,048 ​ — TOTAL ​ $ 1,477 ​ $ 227 ​ $ 660 ​ $ 2,364 ​ $ 1,230,502 ​ $ 1,232,866 ​ $ 45 ​ * Includes $916 thousand of nonaccrual loans. ** Includes $615 thousand of nonaccrual loans. *** Includes $623 thousand of nonaccrual loans.
Schedule of collateral dependent loans	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real Estate ​ Non-Real Estate ​ ​ ​ Allowance for At June 30, 2023 Secured Loans Secured Loans Total Loans Credit Losses ​ ​ Dollars in Thousands Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction and land development ​ $ 246 ​ $ — ​ $ 246 ​ $ — Residential real estate ​ ​ 1,330 ​ ​ — ​ ​ 1,330 ​ ​ — Nonresidential ​ ​ 890 ​ ​ — ​ ​ 890 ​ ​ — Home equity loans ​ ​ 52 ​ ​ — ​ ​ 52 ​ ​ — Commercial ​ ​ — ​ ​ 299 ​ ​ 299 ​ ​ 282 Consumer and other loans ​ — ​ — ​ — ​ — TOTAL ​ $ 2,518 ​ $ 299 ​ $ 2,817 ​ $ 282 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of impaired loans	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unpaid ​ Interest ​ ​ ​ ​ Average ​ ​ Recorded ​ Principal ​ Income ​ Specific ​ Recorded December 31, 2022 Investment Balance Recognized Reserve Investment ​ ​ Dollars in Thousands Impaired loans with specific reserves: ​ ​ ​ ​ ​ Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction and land development ​ $ 11 ​ $ 24 ​ $ 1 ​ $ 8 ​ $ 18 Residential real estate ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Nonresidential ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Home equity loans ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Commercial ​ ​ 326 ​ ​ 337 ​ ​ 45 ​ ​ 282 ​ ​ 368 Consumer and other loans ​ — ​ — ​ — ​ — ​ — Total impaired loans with specific reserves ​ ​ 337 ​ ​ 361 ​ ​ 46 ​ ​ 290 ​ ​ 386 Impaired loans with no specific reserve: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Real Estate Mortgage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction and land development ​ ​ 248 ​ ​ 248 ​ ​ 2 ​ ​ — ​ ​ 249 Residential real estate ​ ​ 1,748 ​ ​ 1,748 ​ ​ 42 ​ ​ — ​ ​ 1,797 Nonresidential ​ ​ 2,442 ​ ​ 2,442 ​ ​ 301 ​ ​ — ​ ​ 3,932 Home equity loans ​ ​ 54 ​ ​ 54 ​ ​ 2 ​ ​ — ​ ​ 53 Commercial ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Consumer and other loans ​ — ​ — ​ — ​ — ​ — Total impaired loans with no specific reserve ​ ​ 4,492 ​ ​ 4,492 ​ ​ 347 ​ ​ — ​ ​ 6,031 TOTAL ​ $ 4,829 ​ $ 4,853 ​ $ 393 ​ $ 290 ​ $ 6,417
Schedule of outstanding balance and carrying amount of acquired loans	​ ​ ​ ​ ​ Dollars in Thousands December 31, 2022 Accountable for under ASC 310-30 (PCI loans) ​ Outstanding balance ​ $ 1,470 Carrying amount ​ 1,056 Accountable for under ASC 310-20 (non-PCI loans) ​ ​ Outstanding balance ​ $ 137,106 Carrying amount ​ 135,792 Total acquired loans ​ ​ Outstanding balance ​ $ 138,576 Carrying amount ​ 136,848
Schedule of changes in accretable yield of acquired loans	​ ​ ​ ​ ​ Dollars in Thousands June 30, 2022 Beginning balance ​ $ 1,896 Accretion ​ (392) Other changes, net ​ ​ — Ending balance ​ $ 1,504
Schedule of activity in the allowance for credit losses on off-balance-sheet commitments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, Dollars in Thousands ​ ​ ​ 2023 ​ ​ 2022 ​ ​ 2023 ​ ​ 2022 Beginning balance ​ ​ $ 658 ​ $ 265 ​ $ 265 ​ $ 265 Impact of adopting ASC 326 ​ ​ ​ - ​ ​ - ​ ​ 512 ​ ​ - Provision for (recovery of) credit losses ​ ​ ​ 11 ​ ​ - ​ ​ (108) ​ ​ - Ending balance ​ ​ $ 669 ​ $ 265 ​ $ 669 ​ $ 265 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Borrowings and Notes Payable (T

Borrowings and Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2023
Borrowings and Notes Payable
Schedule of advances outstanding with the Federal Home Loan Bank and outstanding lines of credit	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 Dollars in Thousands ​ Outstanding Balance Interest Rate Maturity Date Interest Payment Fixed rate hybrid ​ $ 9,900 1.29 % March 2024 Fixed, paid quarterly Fixed rate hybrid ​ ​ 9,900 ​ 1.29 % March 2024 Fixed, paid quarterly Daily rate credit ​ ​ 21,100 ​ 5.32 % December 2023 ​ Variable, paid daily Fixed rate credit ​ 10,000 5.24 % July 2023 Fixed, paid monthly Total advances ​ $ 50,900 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 Dollars in Thousands ​ ​ Outstanding Balance Interest Rate Maturity Date Interest Payment Fixed rate hybrid ​ $ 9,900 ​ 1.29 % March 2024 Fixed, paid quarterly Fixed rate hybrid ​ ​ 9,900 ​ 1.29 % March 2024 Fixed, paid quarterly Daily rate credit ​ 42,000 4.57 % December 2023 Variable, paid daily Total advances ​ $ 61,800
Schedule of maturities of debt	​ ​ ​ ​ ​ 2023 $ 31,089 2024 ​ 19,778 2025 ​ — 2026 ​ — 2027 ​ ​ — Thereafter ​ 22,873 ​ ​ $ 73,740

Lease Commitment (Tables)

Lease Commitment (Tables)	6 Months Ended
	Jun. 30, 2023
Lease Commitments
Schedule of supplemental lease information	The following tables present information about the Company’s leases as of the dates and for the periods noted below: ​ ​ ​ ​ ​ ​ ​ ​ Dollars in Thousands June 30, 2023 December 31, 2022 ​ Balance Sheet ​ ​ ​ ​ ​ ​ ​ Operating Lease Amounts ​ ​ ​ ​ ​ ​ ​ Right-of-use asset ​ $ 4,826 ​ $ 5,065 ​ Lease liability ​ 5,230 ​ ​ 5,465 ​ Finance Lease Amounts ​ ​ ​ ​ ​ ​ ​ Right-of-use asset ​ $ 1,482 ​ $ 1,550 ​ Lease liability ​ ​ 1,941 ​ ​ 2,006 ​ ​ ​ ​ ​ ​ ​ ​ ​ Supplemental balance sheet information ​ ​ ​ ​ ​ ​ ​ Weighted average lease term - Operating Leases (Yrs.) ​ 7.60 ​ ​ 7.59 ​ Weighted average lease term - Finance Leases (Yrs.) ​ 10.59 ​ ​ 11.05 ​ Weighted average discount rate - Operating Leases (1) ​ ​ 2.41 % ​ 2.31 % Weighted average discount rate - Finance Leases (1) ​ ​ 2.84 % ​ 2.84 % ​ ​ ​ ​ ​ ​ ​ ​ Income Statement ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ June 30, 2023 ​ June 30, 2022 ​ Operating lease cost classified as premises and equipment ​ $ 250 ​ $ 286 ​ Finance lease cost classified as interest on borrowings ​ ​ 14 ​ ​ 15 ​ Six Months Ended ​ ​ ​ ​ ​ ​ ​ Operating lease cost classified as premises and equipment ​ $ 510 ​ $ 572 ​ Finance lease cost classified as interest on borrowings ​ ​ 28 ​ ​ 30 ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating outgoing cash flows from operating leases ​ $ 486 ​ $ 514 ​ Operating outgoing cash flows from finance leases ​ $ 92 ​ $ 89 ​ (1) The discount rate was developed by using the fixed rate credit advance borrowing rate at the FHLB of Atlanta for a term correlating to the remaining life of each lease. Management believes this rate closely mirrors its incremental borrowing rate for similar terms.
Schedule of minimum operating lease payments	​ ​ ​ ​ ​ ​ Dollars in Thousands Operating Leases: ​ ​ ​ One year or less ​ $ 836 One to three years ​ 1,362 Three to five years ​ 1,065 Over 5 years ​ 2,606 Total undiscounted cash flows ​ 5,869 Less: Discount ​ (639) Lease Liabilities ​ $ 5,230 ​ ​ ​ ​ Finance Leases: ​ ​ ​ One year or less ​ $ 191 One to three years ​ ​ 403 Three to five years ​ ​ 408 Over 5 years ​ ​ 1,263 Total undiscounted cash flows ​ ​ 2,265 Less: Discount ​ ​ (324) Lease Liabilities ​ $ 1,941
Schedule of minimum finance lease payments	​ ​ ​ ​ ​ ​ Dollars in Thousands Operating Leases: ​ ​ ​ One year or less ​ $ 836 One to three years ​ 1,362 Three to five years ​ 1,065 Over 5 years ​ 2,606 Total undiscounted cash flows ​ 5,869 Less: Discount ​ (639) Lease Liabilities ​ $ 5,230 ​ ​ ​ ​ Finance Leases: ​ ​ ​ One year or less ​ $ 191 One to three years ​ ​ 403 Three to five years ​ ​ 408 Over 5 years ​ ​ 1,263 Total undiscounted cash flows ​ ​ 2,265 Less: Discount ​ ​ (324) Lease Liabilities ​ $ 1,941

Stock Option Plans (Tables)

Stock Option Plans (Tables) - Employee Stock Option [Member]	6 Months Ended
	Jun. 30, 2023
Liberty 2004 Stock Option Plan
Stock options
Summary of stock option activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ Average ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ Remaining ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercise ​ Contractual ​ ​ Intrinsic ​ ​ ​ Shares ​ ​ Price ​ Life ​ ​ Value Outstanding at beginning of period ​ ​ 4,733 ​ $ 4.14 ​ 0.23 ​ ​ ​ Granted ​ ​ — ​ ​ — ​ — ​ ​ ​ Exercised ​ ​ — ​ ​ — ​ — ​ ​ ​ Forfeited ​ ​ (4,733) ​ ​ 4.14 ​ — ​ ​ ​ Outstanding at end of period ​ ​ — ​ $ — ​ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Options exercisable at June 30, 2023 ​ ​ — ​ $ — ​ ​ ​ ​ ​
Partners Stock Option Plan
Stock options
Summary of stock option activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ Average ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ Remaining ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercise ​ Contractual ​ ​ Intrinsic ​ ​ ​ Shares ​ ​ Price ​ Life ​ ​ Value Outstanding at beginning of period ​ ​ 88,467 ​ $ 6.59 ​ 2.85 ​ ​ ​ Granted ​ ​ — ​ ​ — ​ — ​ ​ ​ Exercised ​ ​ (11,853) ​ ​ 5.83 ​ — ​ ​ ​ Forfeited ​ ​ (1,546) ​ ​ 5.83 ​ — ​ ​ ​ Outstanding at end of period ​ ​ 75,068 ​ $ 6.73 ​ 2.85 ​ $ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Options exercisable at June 30, 2023 ​ ​ 75,068 ​ $ 6.73 ​ ​ ​ ​ ​

Incentive Stock Plan (Tables)

Incentive Stock Plan (Tables)	6 Months Ended
	Jun. 30, 2023
2021 Incentive Stock Plan | Restricted stock
Equity Compensation
Summary of non vested restricted stock awards	​ ​ ​ ​ ​ ​ ​ ​ ​ Employees ​ ​ ​ ​ Weighted ​ ​ ​ ​ Average ​ ​ Shares ​ Fair Value Nonvested Awards December 31, 2022 18,669 $ 8.99 Awarded in 2023 — ​ — Vested in 2023 ​ (9,331) ​ ​ 8.99 Nonvested Awards June 30, 2023 9,338 ​ $ 8.99

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2023
Earnings Per Share
Schedule of basic and diluted EPS	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Income Applicable ​ ​ ​ ​ ​ ​ to Basic Earnings ​ Weighted Average ​ Earnings (Dollars and amounts in thousands, except per share data) ​ Per Common Share ​ Shares Outstanding ​ Per Share For the three months ended June 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic EPS ​ $ 3,764 ​ ​ 17,986 ​ $ 0.209 Effect of dilutive stock awards ​ ​ — ​ ​ — ​ ​ — Diluted EPS ​ $ 3,764 ​ ​ 17,986 ​ $ 0.209 ​ ​ ​ ​ ​ ​ ​ ​ For the six months ended June 30, 2023 ​ ​ ​ ​ ​ ​ Basic EPS ​ $ 7,094 ​ ​ 17,985 ​ $ 0.394 Effect of dilutive stock awards ​ ​ — ​ ​ 9 ​ ​ — Diluted EPS ​ $ 7,094 ​ ​ 17,994 ​ $ 0.394 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended June 30, 2022 ​ ​ ​ ​ ​ ​ ​ Basic EPS ​ $ 3,179 ​ ​ 17,962 ​ $ 0.177 Effect of dilutive stock awards ​ ​ — ​ ​ 32 ​ ​ — Diluted EPS ​ $ 3,179 ​ ​ 17,994 ​ $ 0.177 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the six months ended June 30, 2022 ​ ​ ​ ​ ​ ​ Basic EPS ​ $ 5,288 ​ ​ 17,960 ​ $ 0.294 Effect of dilutive stock awards ​ ​ — ​ ​ 73 ​ ​ (0.001) Diluted EPS ​ $ 5,288 ​ ​ 18,033 ​ $ 0.293

Regulatory Capital Requiremen_2

Regulatory Capital Requirements (Tables)	6 Months Ended
	Jun. 30, 2023
Regulatory Capital Requirements
Summary of comparison of the Company's and the Bank's capital amounts and ratios with the minimum requirements	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ To Be ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Well Capitalized ​ ​ ​ ​ ​ ​ ​ For Capital ​ Under Prompt ​ ​ ​ ​ ​ ​ ​ Adequacy ​ Corrective Action In Thousands ​ Actual ​ Purposes ​ Provisions ​ Amount Ratio Amount Ratio Amount Ratio As of June 30, 2023 ​ ​ ​ ​ Total Capital Ratio ​ ​ ​ ​ (To Risk Weighted Assets) ​ ​ ​ ​ The Bank of Delmarva ​ $ 104,602 14.0 % $ 78,573 10.5 % $ 74,832 10.0 % Virginia Partners Bank ​ 65,379 11.1 % 62,077 10.5 % 59,121 10.0 % Tier 1 Capital Ratio ​ ​ ​ ​ ​ ​ ​ ​ ​ (To Risk Weighted Assets) ​ ​ ​ ​ ​ ​ ​ ​ ​ The Bank of Delmarva ​ 95,238 12.7 % 63,607 8.5 % 59,865 8.0 % Virginia Partners Bank ​ 60,092 10.2 % 50,253 8.5 % 47,297 8.0 % Common Equity Tier I Ratio ​ ​ ​ ​ ​ ​ ​ ​ ​ (To Risk Weighted Assets) ​ ​ ​ ​ ​ ​ ​ ​ ​ The Bank of Delmarva ​ 95,238 12.7 % 52,382 7.0 % 48,640 6.5 % Virginia Partners Bank ​ 60,092 10.2 % 41,385 7.0 % 38,429 6.5 % Tier 1 Leverage Ratio ​ ​ ​ ​ ​ ​ ​ ​ ​ (To Average Assets) ​ ​ ​ ​ ​ ​ ​ ​ ​ The Bank of Delmarva ​ 95,238 10.6 % 36,056 4.0 % 45,070 5.0 % Virginia Partners Bank ​ 60,092 9.5 % 25,330 4.0 % 31,662 5.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2022 ​ ​ ​ ​ Total Capital Ratio ​ ​ ​ ​ (To Risk Weighted Assets) ​ ​ ​ ​ The Bank of Delmarva ​ $ 98,910 13.4 % $ 77,763 10.5 % $ 74,060 10.0 % Virginia Partners Bank ​ ​ 63,558 11.3 % ​ 58,862 10.5 % ​ 56,059 10.0 % Tier 1 Capital Ratio ​ ​ ​ ​ ​ ​ ​ ​ ​ (To Risk Weighted Assets) ​ ​ ​ ​ ​ ​ ​ ​ ​ The Bank of Delmarva ​ 89,645 12.1 % 62,951 8.5 % 59,248 8.0 % Virginia Partners Bank ​ ​ 58,895 10.5 % ​ 47,650 8.5 % ​ 44,848 8.0 % Common Equity Tier I Ratio ​ ​ ​ ​ ​ ​ ​ ​ ​ (To Risk Weighted Assets) ​ ​ ​ ​ ​ ​ ​ ​ ​ The Bank of Delmarva ​ 89,645 12.1 % 51,842 7.0 % 48,139 6.5 % Virginia Partners Bank ​ ​ 58,895 10.5 % ​ 39,242 7.0 % ​ 36,439 6.5 % Tier 1 Leverage Ratio ​ ​ ​ ​ ​ ​ ​ ​ ​ (To Average Assets) ​ ​ ​ ​ ​ ​ ​ ​ ​ The Bank of Delmarva ​ 89,645 9.3 % 38,416 4.0 % 48,020 5.0 % Virginia Partners Bank ​ ​ 58,895 8.9 % ​ 26,348 4.0 % ​ 32,935 5.0 %

Fair Values of Financial Inst_2

Fair Values of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2023
Fair Values of Financial Instruments
Summary of the estimated fair value and the related carrying values of the Company's financial instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dollars are in thousands ​ ​ ​ ​ Fair Value Measurements at June 30, 2023 ​ ​ ​ ​ ​ Quoted Prices in ​ Significant ​ Significant ​ ​ ​ ​ ​ ​ Active Markets for ​ Other ​ Unobservable ​ ​ ​ ​ ​ Carrying ​ Identical Assets ​ Observable Inputs ​ Inputs ​ ​ ​ ​ Amount (Level 1) (Level 2) (Level 3) Balance Financial assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and due from banks ​ $ 16,011 ​ $ 16,011 ​ $ — ​ $ — ​ $ 16,011 Interest bearing deposits ​ 43,128 ​ 43,128 ​ — ​ — ​ 43,128 Federal funds sold ​ 17,478 ​ 17,478 ​ — ​ — ​ 17,478 Securities: ​ ​ ​ ​ ​ ​ ​ Available for sale ​ 129,259 ​ — ​ 129,259 ​ — ​ 129,259 Loans held for sale ​ ​ 519 ​ ​ — ​ ​ 519 ​ ​ — ​ ​ 519 Loans, net of allowance for credit losses ​ 1,261,546 ​ — ​ — ​ 1,195,625 ​ 1,195,625 Accrued interest receivable ​ 4,440 ​ — ​ 4,440 ​ — ​ 4,440 Restricted stock ​ 6,163 ​ — ​ 6,163 ​ — ​ 6,163 Other investments ​ 5,364 ​ — ​ 5,364 ​ — ​ 5,364 Bank owned life insurance ​ ​ 18,940 ​ ​ — ​ ​ 18,940 ​ ​ — ​ ​ 18,940 Financial liabilities: ​ ​ ​ ​ ​ Deposits ​ $ 1,318,482 ​ $ — ​ $ 1,006,938 ​ $ 305,849 ​ $ 1,312,787 Accrued interest payable on deposits ​ 907 ​ — ​ 907 ​ — ​ 907 FHLB advances ​ 50,900 ​ — ​ 50,308 ​ — ​ 50,308 Subordinated notes payable ​ 22,238 ​ — ​ 25,876 ​ — ​ 25,876 Other borrowings ​ ​ 602 ​ ​ — ​ ​ — ​ ​ 602 ​ ​ 602 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dollars are in thousands ​ ​ ​ ​ Fair Value Measurements at December 31, 2022 ​ ​ ​ ​ ​ Quoted Prices in ​ Significant ​ Significant ​ ​ ​ ​ ​ ​ Active Markets for ​ Other ​ Unobservable ​ ​ ​ ​ ​ Carrying ​ Identical Assets ​ Observable Inputs ​ Inputs ​ ​ ​ ​ Amount (Level 1) (Level 2) (Level 3) Balance Financial assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and due from banks ​ $ 14,678 ​ $ 14,678 ​ $ — ​ $ — ​ $ 14,678 Interest bearing deposits ​ 103,922 ​ 103,922 ​ — ​ — ​ 103,922 Federal funds sold ​ 22,990 ​ 22,990 ​ — ​ — ​ 22,990 Securities: ​ ​ ​ ​ ​ ​ ​ Available for sale ​ 133,657 ​ — ​ 133,657 ​ — ​ 133,657 Loans held for sale ​ ​ 1,314 ​ ​ — ​ ​ 1,314 ​ ​ — ​ ​ 1,314 Loans, net of allowance for credit losses ​ 1,218,551 ​ — ​ — ​ 1,165,190 ​ 1,165,190 Accrued interest receivable ​ 4,566 ​ — ​ 4,566 ​ — ​ 4,566 Restricted stock ​ 6,512 ​ — ​ 6,512 ​ — ​ 6,512 Other investments ​ 4,888 ​ — ​ 4,888 ​ — ​ 4,888 Bank owned life insurance ​ ​ 18,706 ​ ​ — ​ ​ 18,706 ​ ​ — ​ ​ 18,706 Financial liabilities: ​ ​ ​ ​ ​ Deposits ​ $ 1,339,605 ​ $ — ​ $ 1,082,084 ​ $ 249,183 ​ $ 1,331,267 Accrued interest payable on deposits ​ 267 ​ — ​ 267 ​ — ​ 267 FHLB advances ​ 61,800 ​ — ​ 60,990 ​ — ​ 60,990 Subordinated notes payable ​ 22,215 ​ — ​ 26,364 ​ — ​ 26,364 Other borrowings ​ ​ 613 ​ ​ — ​ ​ — ​ ​ 613 ​ ​ 613

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2023
Fair Value Measurements
Summary of fair value measurements on a recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Dollars are in thousands Level 1 Level 2 Level 3 Value June 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Securities AFS: ​ ​ ​ ​ Obligations of U.S. Government agencies and corporations ​ $ — ​ $ 15,531 ​ $ — ​ $ 15,531 Obligations of States and political subdivisions ​ — ​ 27,255 ​ — ​ 27,255 Mortgage-backed securities ​ — ​ 84,186 ​ — ​ 84,186 Subordinated debt investments ​ ​ — ​ 2,287 ​ — ​ 2,287 Total securities AFS ​ $ — ​ $ 129,259 ​ $ — ​ $ 129,259 December 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Securities AFS: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Obligations of U.S. Government agencies and corporations ​ $ — ​ $ 15,466 ​ $ — ​ $ 15,466 Obligations of States and political subdivisions ​ — ​ 27,065 ​ — ​ 27,065 Mortgage-backed securities ​ — ​ 88,740 ​ — ​ 88,740 Subordinated debt investments ​ ​ — ​ 2,386 ​ — ​ 2,386 Total securities AFS ​ $ — ​ $ 133,657 ​ $ — ​ $ 133,657
Summary of the balances of financial assets measured at fair value on a non-recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Dollars are in thousands Level 1 Level 2 Level 3 Value December 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Impaired loans ​ $ — ​ $ — ​ $ 3 ​ $ 3 Total ​ $ — ​ $ — ​ $ 3 ​ $ 3
Schedule of fair value financial assets measured on non-recurring basis valuation techniques	The following table presents additional quantitative information about financial assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value as of December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Valuation ​ Unobservable ​ Range of Dollars are in thousands ​ Fair Value ​ Technique ​ Inputs ​ Inputs December 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ Impaired loans $ 3 Appraisals Discount to reflect current market conditions and estimated selling costs 8% Total ​ $ 3 ​ ​ ​ ​ ​ ​

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2023
Core deposit intangible
Intangible assets
Summary of changes in the intangible assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, Dollars in Thousands 2023 2022 Beginning balance ​ $ 1,540 ​ $ 2,060 Amortization ​ (240) ​ (520) Ending balance ​ $ 1,300 ​ $ 1,540
Schedule of future amortization	​ ​ ​ ​ ​ ​ ​ June 30, Dollars in Thousands ​ 2023 2023 ​ $ 227 2024 ​ ​ 415 2025 ​ ​ 246 2026 ​ ​ 182 2027 ​ ​ 129 Thereafter ​ ​ 101 ​ ​ $ 1,300
Deposits Purchased Premium (Discount) Net
Intangible assets
Summary of changes in the intangible assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, Dollars in Thousands 2023 2022 Beginning balance ​ $ (3) ​ $ (9) Accretion, net ​ 1 ​ 6 Ending balance ​ $ (2) ​ $ (3)
Schedule of future accretion	​ ​ ​ ​ ​ ​ ​ June 30, Dollars in Thousands ​ 2023 2023 ​ $ 1 2024 ​ ​ 1 ​ ​ $ 2
Schedule of the net effect of amortization of premiums and accretion of discounts associated with acquisition accounting adjustments to assets acquired and liabilities assumed	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ June 30, ​ 2023 2022 Six Months Ended ​ Dollars in Thousands Adjustments to net income ​ ​ ​ ​ ​ ​ Loans (1) ​ $ 288 ​ $ 448 Time deposits (2) ​ (1) ​ (5) Core deposit intangible (3) ​ ​ (240) ​ ​ (266) Note Payable (4) ​ ​ (2) ​ ​ (2) Net impact to income before taxes ​ $ 45 ​ $ 175 ​ (1) Loan discount accretion is included in the "Loans, including fees" section of "Interest Income" in the Consolidated Statements of Income. (2) Time deposit discount accretion is included in the "Deposits" section of "Interest Expense" in the Consolidated Statements of Income. (3) Core deposit intangible premium amortization is included in the "Amortization of core deposit intangible" section of "Other Expense" in the Consolidated Statements of Income. (4) Note payable discount accretion is included in the "Borrowings" section of "Interest Expense" in the Consolidated Statements of Income.

Nature of Business and Its Si_4

Nature of Business and Its Significant Accounting Policies - Consolidation (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2023 subsidiary
Principles of Consolidation
Number of subsidiaries | subsidiary		2
Gain on dissolution of DBH Development, LLC | $	$ 0
The Bank of Delmarva | DHB Development LLC
Principles of Consolidation
Ownership interest (as a percent)		40.55%
Virginia Partners Bank | Johnson Mortgage Company LLC
Principles of Consolidation
Ownership interest (as a percent)		51%

Nature of Business and Its Si_5

Nature of Business and Its Significant Accounting Policies - Adoption of New Accounting Standard (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 01, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
New accounting pronouncements
Tax Effect		$ 1,250	$ 926	$ 2,436	$ 1,622
Change to Retained Earnings from Adoption of CECL		$ (67,097)		(67,097)		$ (62,854)	[1]
PCD loans
New accounting pronouncements
Provision for credit losses on PCD loans				$ 0
Cumulative effect adjustment | ASU 2016-13
New accounting pronouncements
Change in Consolidated Balance Sheet	$ 1,842
Tax Effect	430					430
Change to Retained Earnings from Adoption of CECL	1,412					$ 1,400
Cumulative effect adjustment | ASU 2016-13 | ACL Loans
New accounting pronouncements
Change in Consolidated Balance Sheet	1,330
Tax Effect	310
Change to Retained Earnings from Adoption of CECL	1,020
Cumulative effect adjustment | ASU 2016-13 | ACL Loans | PCI loans
New accounting pronouncements
Change in Consolidated Balance Sheet	9
Change to Retained Earnings from Adoption of CECL	9
Cumulative effect adjustment | ASU 2016-13 | ACL Loans | PCD loans
New accounting pronouncements
Change in Consolidated Balance Sheet	(9)
Change to Retained Earnings from Adoption of CECL	(9)
Cumulative effect adjustment | ASU 2016-13 | Total ACL - loans
New accounting pronouncements
Change in Consolidated Balance Sheet	1,339
Tax Effect	310
Change to Retained Earnings from Adoption of CECL	1,029
Cumulative effect adjustment | ASU 2016-13 | ACL - unfunded credit commitments
New accounting pronouncements
Change in Consolidated Balance Sheet	512
Tax Effect	120
Change to Retained Earnings from Adoption of CECL	$ 392
[1] * Derived from audited consolidated financial statements.

Nature of Business and Its Si_6

Nature of Business and Its Significant Accounting Policies - Investment Securities and Allowance for Credit Losses (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($) category
Nature of Business and Its Significant Accounting Policies
ACL related to AFS portfolio | $	$ 0
Number of categories of acquired loans | category	2
Allowance for credit loss forecast Period	12 months

Nature of Business and Its Si_7

Nature of Business and Its Significant Accounting Policies - Loans Held for Sale (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) item	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Loans held for sale
Provision for credit losses	$ 93	$ 319	$ 393	$ 384	$ 1,348
Johnson Mortgage Company LLC | Real Estate
Loans held for sale
Receivable settlement period on mortgage loans sold			30 days
Allowance for repurchase of loans sold	$ 0	$ 0	$ 0	$ 0
Provision for credit losses			$ 0		$ 0
Johnson Mortgage Company LLC | Real Estate | Minimum
Loans held for sale
Number of family residences in structures for which mortgages are purchased or refinanced | item			1
Johnson Mortgage Company LLC | Real Estate | Maximum
Loans held for sale
Number of family residences in structures for which mortgages are purchased or refinanced | item			4

Nature of Business and Its Si_8

Nature of Business and Its Significant Accounting Policies - OREO (Details) - property	Jun. 30, 2023	Dec. 31, 2022
Nature of Business and Its Significant Accounting Policies
Number of properties in OREO	0	0

Nature of Business and Its Si_9

Nature of Business and Its Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Goodwill
Impairment of goodwill	$ 0	$ 0	$ 0

Nature of Business and Its S_10

Nature of Business and Its Significant Accounting Policies - Earnings Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Weighted average shares outstanding
Weighted average shares outstanding	17,985,577	17,962,000	17,985,267	17,960,000

Investment Securities - Availab

Investment Securities - Available for sale (Details) - USD ($) $ in Thousands		Jun. 30, 2023	Dec. 31, 2022
Debt securities
Amortized Cost			$ 150,689
Amortized Cost		$ 146,621
Gross Unrealized Gains		13	7
Gross Unrealized Losses		17,375	17,039
Fair Value		129,259
Fair Value	[1]		133,657
Obligations of U.S. Government agencies
Debt securities
Amortized Cost			17,115
Amortized Cost		17,191
Gross Unrealized Losses		1,660	1,649
Fair Value		15,531
Fair Value			15,466
Obligations of States and political subdivisions
Debt securities
Amortized Cost			29,480
Amortized Cost		29,654
Gross Unrealized Gains		13	7
Gross Unrealized Losses		2,412	2,422
Fair Value		27,255
Fair Value			27,065
Mortgage-backed securities
Debt securities
Amortized Cost			101,626
Amortized Cost		97,306
Gross Unrealized Losses		13,120	12,886
Fair Value		84,186
Fair Value			88,740
Subordinated debt investments
Debt securities
Amortized Cost			2,468
Amortized Cost		2,470
Gross Unrealized Losses		183	82
Fair Value		$ 2,287
Fair Value			$ 2,386
[1] * Derived from audited consolidated financial statements.

Investment Securities - Unreali

Investment Securities - Unrealized loss positions (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt securities - Fair Value
Less than 12 months	$ 19,036	$ 72,691
12 months or more	109,281	59,445
Total	128,317	132,136
Debt securities - Unrealized Loss
Less than 12 months	497	4,968
12 months or more	16,878	12,071
Total	17,375	17,039
Obligations of U.S. Government agencies
Debt securities - Fair Value
Less than 12 months	7,659	12,447
12 months or more	7,872	3,019
Total	15,531	15,466
Debt securities - Unrealized Loss
Less than 12 months	169	829
12 months or more	1,491	820
Total	1,660	1,649
Obligations of States and political subdivisions
Debt securities - Fair Value
Less than 12 months	9,479	23,975
12 months or more	17,087	1,821
Total	26,566	25,796
Debt securities - Unrealized Loss
Less than 12 months	232	1,714
12 months or more	2,180	708
Total	2,412	2,422
Mortgage-backed securities
Debt securities - Fair Value
Less than 12 months	1,456	34,133
12 months or more	82,727	54,605
Total	84,183	88,738
Debt securities - Unrealized Loss
Less than 12 months	59	2,343
12 months or more	13,061	10,543
Total	13,120	12,886
Subordinated debt investments
Debt securities - Fair Value
Less than 12 months	442	2,136
12 months or more	1,595
Total	2,037	2,136
Debt securities - Unrealized Loss
Less than 12 months	37	82
12 months or more	146
Total	$ 183	$ 82

Investment Securities - Number

Investment Securities - Number of positions (Details)	Jun. 30, 2023 position
Obligations of U.S. Government agencies
Investment Securities
Debt securities - Number of positions in unrealized loss position - less than 12 months	8
Debt securities - Number of positions in unrealized loss position - 12 months or longer	10
Obligations of States and political subdivisions
Investment Securities
Debt securities - Number of positions in unrealized loss position - less than 12 months	22
Debt securities - Number of positions in unrealized loss position - 12 months or longer	38
Mortgage-backed securities
Investment Securities
Debt securities - Number of positions in unrealized loss position - less than 12 months	2
Debt securities - Number of positions in unrealized loss position - 12 months or longer	69
Subordinated debt investments
Investment Securities
Debt securities - Number of positions in unrealized loss position - less than 12 months	1
Debt securities - Number of positions in unrealized loss position - 12 months or longer	3

Investment Securities - Other i

Investment Securities - Other information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) security	Jun. 30, 2022 USD ($) security	Jun. 30, 2023 USD ($) security	Jun. 30, 2022 USD ($) security	Dec. 31, 2022 USD ($)
Investment securities available for sale
Number of securities either matured or called | security	0	0	0	1
Net gain (loss) on securities either matured or called				$ 0
Realized gain (loss) on equity securities	$ (27)	$ (62)	$ 0	(151)
Fair Value	129,259		129,259
Available-for-sale securities, credit losses	0		0
Proceeds from Sale of Debt Securities, Available-for-Sale	0	$ 0	0	$ 0
Asset Pledged as Collateral
Investment securities available for sale
Amortized cost	10,200		10,200		$ 10,400
Fair value	8,900		8,900		9,100
Financial Asset, Past Due [Member]
Investment securities available for sale
Fair Value	$ 0		$ 0		$ 0

Investment Securities - Investm

Investment Securities - Investment Maturities (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Amortized Cost
Due in one year or less	$ 995
Due after one year through five years	17,599
Due after five years through ten years	40,755
Due after ten years or more	87,272
Amortized Cost	146,621
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract]
Due in one year or less	976
Due after one year through five years	16,750
Due after five years through ten years	37,757
Due after ten years or more	73,776
Fair Value	$ 129,259

Loans and Allowance for Credi_3

Loans and Allowance for Credit Losses - Major Categories of Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022		Dec. 31, 2021
Investment Securities
Total loans, gross	$ 1,277,763
Less: Allowance for credit losses	(16,217)	$ (16,096)	$ (14,315)
Total loans, net	1,261,546		1,218,551	[1]
Loans and leases receivable net of unamortized discount	1,277,763		1,232,866
Less: Allowance for loan losses			(14,315)		$ (14,656)
Total loans, net			1,218,551
Nonresidential
Investment Securities
Total loans, gross	753,126
Home Equity Loans
Investment Securities
Total loans, gross	30,428
Real Estate Mortgage | Construction and Land Development
Investment Securities
Total loans, gross	108,390
Less: Allowance for credit losses	(1,933)	(2,364)	(1,080)
Loans and leases receivable net of unamortized discount	108,390		117,296
Less: Allowance for loan losses			(1,080)		(1,143)
Real Estate Mortgage | Residential Real Estate
Investment Securities
Total loans, gross	242,878
Less: Allowance for credit losses	(2,710)	(2,556)	(2,059)
Loans and leases receivable net of unamortized discount	242,878		229,904
Less: Allowance for loan losses			(2,059)		(1,893)
Real Estate Mortgage | Nonresidential
Investment Securities
Total loans, gross	753,126
Less: Allowance for credit losses	(8,023)	(7,622)	(8,637)
Loans and leases receivable net of unamortized discount	753,126		722,620
Less: Allowance for loan losses			(8,637)		(9,239)
Real Estate Mortgage | Home Equity Loans
Investment Securities
Total loans, gross	30,428
Less: Allowance for credit losses	(628)	(641)	(249)
Loans and leases receivable net of unamortized discount	30,428		31,445
Less: Allowance for loan losses			(249)		(212)
Commercial
Investment Securities
Total loans, gross	140,001
Less: Allowance for credit losses	(2,563)	(2,357)	(1,918)
Loans and leases receivable net of unamortized discount	140,001		128,553
Less: Allowance for loan losses			(1,918)		(1,885)
Consumer and Other
Investment Securities
Total loans, gross	2,940
Less: Allowance for credit losses	(47)	$ (47)	(76)
Loans and leases receivable net of unamortized discount	2,940		3,048
Less: Allowance for loan losses			(76)		$ (36)
Originated Loans
Investment Securities
Total loans, gross	1,153,896
Loans and leases receivable net of unamortized discount			1,096,018
Originated Loans | Real Estate Mortgage | Construction and Land Development
Investment Securities
Total loans, gross	108,339
Loans and leases receivable net of unamortized discount			117,256
Originated Loans | Real Estate Mortgage | Residential Real Estate
Investment Securities
Total loans, gross	218,967
Loans and leases receivable net of unamortized discount			204,211
Originated Loans | Real Estate Mortgage | Nonresidential
Investment Securities
Total loans, gross	671,580
Loans and leases receivable net of unamortized discount			633,910
Originated Loans | Real Estate Mortgage | Home Equity Loans
Investment Securities
Total loans, gross	22,558
Loans and leases receivable net of unamortized discount			22,866
Originated Loans | Commercial
Investment Securities
Total loans, gross	129,728
Loans and leases receivable net of unamortized discount			115,221
Originated Loans | Consumer and Other
Investment Securities
Total loans, gross	2,724
Loans and leases receivable net of unamortized discount			2,554
Acquired Loans
Investment Securities
Total loans, gross	123,867
Loans and leases receivable net of unamortized discount			136,848
Acquired Loans | Real Estate Mortgage | Construction and Land Development
Investment Securities
Total loans, gross	51
Loans and leases receivable net of unamortized discount			40
Acquired Loans | Real Estate Mortgage | Residential Real Estate
Investment Securities
Total loans, gross	23,911
Loans and leases receivable net of unamortized discount			25,693
Acquired Loans | Real Estate Mortgage | Nonresidential
Investment Securities
Total loans, gross	81,546
Loans and leases receivable net of unamortized discount			88,710
Acquired Loans | Real Estate Mortgage | Home Equity Loans
Investment Securities
Total loans, gross	7,870
Loans and leases receivable net of unamortized discount			8,579
Acquired Loans | Commercial
Investment Securities
Total loans, gross	10,273
Loans and leases receivable net of unamortized discount			13,332
Acquired Loans | Consumer and Other
Investment Securities
Total loans, gross	$ 216
Loans and leases receivable net of unamortized discount			$ 494
[1] * Derived from audited consolidated financial statements.

Loans and Allowance for Credi_4

Loans and Allowance for Credit Losses - Loan Impairment and Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 16,096		$ 14,315
Charge-offs	(16)		(91)
Recoveries	55		152
Provision/(recovery)	82		502
Ending Balance	16,217		16,217		$ 14,315
Beginning Balance			14,315	$ 14,656	14,656
Charge-offs					(1,849)
Recoveries					160
Provision for credit losses	93	$ 319	393	384	1,348
Ending Balance					14,315
Purchased credit impaired loans: Related loan balance					1,056
Individually evaluated for impairment: Balance in allowance					290
Individually evaluated for impairment: Related loan balance					4,829
Collectively evaluated for impairment: Balance in allowance					14,025
Collectively evaluated for impairment: Related loan balance					1,226,981
Unamortized discounts on acquired loans					1,700
Nonaccrual loans
Loans past due 90 days or more still accruing interest	252		252		45
Paycheck Protection Program
Carrying amount	1,277,763		1,277,763		1,232,866
Cumulative effect adjustment | ASU 2016-13
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Balance			1,339
Ending Balance					1,339
Real Estate Mortgage | Construction and Land Development
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Balance	2,364		1,080
Charge-offs			(10)
Provision/(recovery)	(431)		(1,056)
Ending Balance	1,933		1,933		1,080
Beginning Balance			1,080	1,143	1,143
Charge-offs					(13)
Recoveries					1
Provision for credit losses					(51)
Ending Balance					1,080
Individually evaluated for impairment: Balance in allowance					8
Individually evaluated for impairment: Related loan balance					259
Collectively evaluated for impairment: Balance in allowance					1,072
Collectively evaluated for impairment: Related loan balance					117,037
Paycheck Protection Program
Carrying amount	108,390		108,390		117,296
Real Estate Mortgage | Construction and Land Development | Cumulative effect adjustment | ASU 2016-13
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Balance			1,919
Ending Balance					1,919
Real Estate Mortgage | Residential Real Estate
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Balance	2,556		2,059
Recoveries	10		27
Provision/(recovery)	144		365
Ending Balance	2,710		2,710		2,059
Beginning Balance			2,059	1,893	1,893
Recoveries					59
Provision for credit losses					107
Ending Balance					2,059
Purchased credit impaired loans: Related loan balance					696
Individually evaluated for impairment: Related loan balance					1,748
Collectively evaluated for impairment: Balance in allowance					2,059
Collectively evaluated for impairment: Related loan balance					227,460
Nonaccrual loans
Loans past due 90 days or more still accruing interest	252		252
Paycheck Protection Program
Carrying amount	242,878		242,878		229,904
Real Estate Mortgage | Residential Real Estate | Cumulative effect adjustment | ASU 2016-13
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Balance			259
Ending Balance					259
Real Estate Mortgage | Nonresidential
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Balance	7,622		8,637
Recoveries	20		19
Provision/(recovery)	381		946
Ending Balance	8,023		8,023		8,637
Beginning Balance			8,637	9,239	9,239
Charge-offs					(1,555)
Recoveries					23
Provision for credit losses					930
Ending Balance					8,637
Purchased credit impaired loans: Related loan balance					352
Individually evaluated for impairment: Related loan balance					2,442
Collectively evaluated for impairment: Balance in allowance					8,637
Collectively evaluated for impairment: Related loan balance					719,826
Paycheck Protection Program
Carrying amount	753,126		753,126		722,620
Real Estate Mortgage | Nonresidential | Cumulative effect adjustment | ASU 2016-13
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Balance			(1,579)
Ending Balance					(1,579)
Real Estate Mortgage | Home Equity Loans
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Balance	641		249
Recoveries	1		2
Provision/(recovery)	(14)		(76)
Ending Balance	628		628		249
Beginning Balance			249	212	212
Charge-offs					(27)
Recoveries					9
Provision for credit losses					55
Ending Balance					249
Individually evaluated for impairment: Related loan balance					54
Collectively evaluated for impairment: Balance in allowance					249
Collectively evaluated for impairment: Related loan balance					31,391
Nonaccrual loans
Loans past due 90 days or more still accruing interest					45
Paycheck Protection Program
Carrying amount	30,428		30,428		31,445
Real Estate Mortgage | Home Equity Loans | Cumulative effect adjustment | ASU 2016-13
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Balance			453
Ending Balance					453
Commercial
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Balance	2,357		1,918
Charge-offs	(2)		(52)
Recoveries	21		93
Provision/(recovery)	187		257
Ending Balance	2,563		2,563		1,918
Beginning Balance			1,918	1,885	1,885
Charge-offs					(182)
Recoveries					20
Provision for credit losses					195
Ending Balance					1,918
Purchased credit impaired loans: Related loan balance					8
Individually evaluated for impairment: Balance in allowance					282
Individually evaluated for impairment: Related loan balance					326
Collectively evaluated for impairment: Balance in allowance					1,636
Collectively evaluated for impairment: Related loan balance					128,219
Paycheck Protection Program
Carrying amount	140,001		140,001		128,553
Commercial | Cumulative effect adjustment | ASU 2016-13
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Balance			347
Ending Balance					347
Consumer and Other
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Balance	47		76
Charge-offs	(14)		(29)
Recoveries	3		11
Provision/(recovery)	11		16
Ending Balance	47		47		76
Beginning Balance			76	36	36
Charge-offs					(72)
Recoveries					48
Provision for credit losses					64
Ending Balance					76
Collectively evaluated for impairment: Balance in allowance					76
Collectively evaluated for impairment: Related loan balance					3,048
Paycheck Protection Program
Carrying amount	2,940		2,940		3,048
Consumer and Other | Cumulative effect adjustment | ASU 2016-13
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Balance			(27)
Ending Balance					(27)
Unallocated
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Balance	509		296
Provision/(recovery)	(196)		50
Ending Balance	$ 313		313		296
Beginning Balance			296	$ 248	248
Provision for credit losses					48
Ending Balance					296
Collectively evaluated for impairment: Balance in allowance					296
Unallocated | Cumulative effect adjustment | ASU 2016-13
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Balance			$ (33)
Ending Balance					(33)
Originated Loans
Paycheck Protection Program
Carrying amount					1,096,018
Originated Loans | Real Estate Mortgage | Construction and Land Development
Paycheck Protection Program
Carrying amount					117,256
Originated Loans | Real Estate Mortgage | Residential Real Estate
Paycheck Protection Program
Carrying amount					204,211
Originated Loans | Real Estate Mortgage | Nonresidential
Paycheck Protection Program
Carrying amount					633,910
Originated Loans | Real Estate Mortgage | Home Equity Loans
Paycheck Protection Program
Carrying amount					22,866
Originated Loans | Commercial
Paycheck Protection Program
Carrying amount					115,221
Originated Loans | Consumer and Other
Paycheck Protection Program
Carrying amount					2,554
Acquired Loans
Paycheck Protection Program
Carrying amount					136,848
Acquired Loans | Real Estate Mortgage | Construction and Land Development
Paycheck Protection Program
Carrying amount					40
Acquired Loans | Real Estate Mortgage | Residential Real Estate
Paycheck Protection Program
Carrying amount					25,693
Acquired Loans | Real Estate Mortgage | Nonresidential
Paycheck Protection Program
Carrying amount					88,710
Acquired Loans | Real Estate Mortgage | Home Equity Loans
Paycheck Protection Program
Carrying amount					8,579
Acquired Loans | Commercial
Paycheck Protection Program
Carrying amount					13,332
Acquired Loans | Consumer and Other
Paycheck Protection Program
Carrying amount					$ 494

Loans and Allowance for Credi_5

Loans and Allowance for Credit Losses - Nonaccrual loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual with No Allowance For Credit Losses	$ 2,191	$ 1,816
Nonaccrual with Allowance For Credit Losses	299	338
Total Nonaccrual Loans	2,490	2,154
Allowance for Credit Losses	282	290
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual with Allowance For Credit Losses	299	327
Total Nonaccrual Loans	299	327
Allowance for Credit Losses	282	282
Construction and Land Development | Real Estate Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual with No Allowance For Credit Losses	246	248
Nonaccrual with Allowance For Credit Losses		11
Total Nonaccrual Loans	246	259
Allowance for Credit Losses		8
Residential Real Estate | Real Estate Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual with No Allowance For Credit Losses	1,220	1,263
Total Nonaccrual Loans	1,220	1,263
Nonresidential | Real Estate Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual with No Allowance For Credit Losses	673	305
Total Nonaccrual Loans	673	$ 305
Home Equity Loans | Real Estate Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual with No Allowance For Credit Losses	52
Total Nonaccrual Loans	$ 52

Loans and Allowance for Credi_6

Loans and Allowance for Credit Losses - Loan by Risk Rating (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($) loan	Jun. 30, 2023 USD ($) loan	Jun. 30, 2022 USD ($) loan	Dec. 31, 2022 USD ($) loan
Origination Year
Prior	$ 288,748		$ 288,748
2019	87,089		87,089
2020	136,467		136,467
2021	266,844		266,844
2022	287,578		287,578
2023	84,604		84,604
Revolving Loans	126,433		126,433
Total	1,277,763		1,277,763
Gross Charge-offs
Prior			3
2020			10
2022			50
2023			28
Total Loans	16		91
Loans and leases receivable net of unamortized discount	1,277,763		1,277,763		$ 1,232,866
Number of loans modified during the period | loan		1		1
Pre-modification recorded balance		$ 48,303		$ 48,303
Post- modification recorded balance		$ 48,263		$ 48,263
Number of loans modified as TDR that subsequently defaulted | loan		0		0
Pass
Gross Charge-offs
Loans and leases receivable net of unamortized discount					1,227,767
Marginal
Gross Charge-offs
Loans and leases receivable net of unamortized discount					2,205
Substandard
Gross Charge-offs
Loans and leases receivable net of unamortized discount					2,894
Nonresidential
Origination Year
Prior	213,063		213,063
2019	65,413		65,413
2020	89,541		89,541
2021	170,428		170,428
2022	174,165		174,165
2023	30,277		30,277
Revolving Loans	10,239		10,239
Total	753,126		753,126
Home Equity Loans
Origination Year
Prior	139		139
2020	19		19
2022	25		25
Revolving Loans	30,245		30,245
Total	30,428		30,428
Real Estate Mortgage | Construction and Land Development
Origination Year
Prior	4,738		4,738
2019	1,377		1,377
2020	5,927		5,927
2021	22,432		22,432
2022	40,966		40,966
2023	18,693		18,693
Revolving Loans	14,257		14,257
Total	108,390		108,390
Gross Charge-offs
Total Loans			10
Loans and leases receivable net of unamortized discount	108,390		108,390		117,296
Real Estate Mortgage | Construction and Land Development | Pass
Origination Year
Prior	4,664		4,664
2019	1,377		1,377
2020	5,927		5,927
2021	22,432		22,432
2022	40,966		40,966
2023	18,693		18,693
Revolving Loans	14,085		14,085
Total	108,144		108,144
Gross Charge-offs
Loans and leases receivable net of unamortized discount					117,037
Real Estate Mortgage | Construction and Land Development | Substandard
Origination Year
Prior	74		74
Revolving Loans	172		172
Total	246		246
Gross Charge-offs
Loans and leases receivable net of unamortized discount					259
Real Estate Mortgage | Residential Real Estate
Origination Year
Prior	62,386		62,386
2019	15,960		15,960
2020	27,179		27,179
2021	51,640		51,640
2022	55,351		55,351
2023	14,055		14,055
Revolving Loans	16,307		16,307
Total	242,878		242,878
Gross Charge-offs
Loans and leases receivable net of unamortized discount	242,878		$ 242,878		$ 229,904
Number of loans modified during the period | loan		1		1
Pre-modification recorded balance		$ 48,303		$ 48,303
Post- modification recorded balance		$ 48,263		$ 48,263
Number of loans in the process of foreclosure | loan			1		0
Real Estate Mortgage | Residential Real Estate | Pass
Origination Year
Prior	60,716		$ 60,716
2019	15,960		15,960
2020	27,179		27,179
2021	51,640		51,640
2022	55,351		55,351
2023	14,055		14,055
Revolving Loans	16,307		16,307
Total	241,208		241,208
Gross Charge-offs
Loans and leases receivable net of unamortized discount					$ 228,217
Real Estate Mortgage | Residential Real Estate | Substandard
Origination Year
Prior	1,670		1,670
Total	1,670		1,670
Gross Charge-offs
Loans and leases receivable net of unamortized discount					1,687
Real Estate Mortgage | Nonresidential
Origination Year
Total	753,126		753,126
Gross Charge-offs
Loans and leases receivable net of unamortized discount	753,126		753,126		722,620
Real Estate Mortgage | Nonresidential | Pass
Origination Year
Prior	212,558		212,558
2019	65,028		65,028
2020	88,216		88,216
2021	170,428		170,428
2022	174,165		174,165
2023	30,277		30,277
Revolving Loans	10,239		10,239
Total	750,911		750,911
Gross Charge-offs
Loans and leases receivable net of unamortized discount					721,225
Real Estate Mortgage | Nonresidential | Marginal
Gross Charge-offs
Loans and leases receivable net of unamortized discount					872
Real Estate Mortgage | Nonresidential | Substandard
Origination Year
Prior	505		505
2019	385		385
2020	1,325		1,325
Total	2,215		2,215
Gross Charge-offs
Loans and leases receivable net of unamortized discount					523
Real Estate Mortgage | Home Equity Loans
Origination Year
Total	30,428		30,428
Gross Charge-offs
Loans and leases receivable net of unamortized discount	30,428		30,428		31,445
Real Estate Mortgage | Home Equity Loans | Pass
Origination Year
Prior	139		139
2020	19		19
2022	25		25
Revolving Loans	30,148		30,148
Total	30,331		30,331
Gross Charge-offs
Loans and leases receivable net of unamortized discount					31,347
Real Estate Mortgage | Home Equity Loans | Substandard
Origination Year
Revolving Loans	97		97
Total	97		97
Gross Charge-offs
Loans and leases receivable net of unamortized discount					98
Commercial
Origination Year
Prior	7,819		7,819
2019	4,307		4,307
2020	13,640		13,640
2021	21,675		21,675
2022	16,641		16,641
2023	21,092		21,092
Revolving Loans	54,827		54,827
Total	140,001		140,001
Gross Charge-offs
Total Loans	2		52
Loans and leases receivable net of unamortized discount	140,001		140,001		128,553
Commercial | Pass
Origination Year
Prior	7,520		7,520
2019	4,192		4,192
2020	13,640		13,640
2021	21,675		21,675
2022	16,640		16,640
2023	21,092		21,092
Revolving Loans	54,495		54,495
Total	139,254		139,254
Gross Charge-offs
Loans and leases receivable net of unamortized discount					127,241
Commercial | Marginal
Origination Year
2019	115		115
Revolving Loans	332		332
Total	447		447
Gross Charge-offs
Loans and leases receivable net of unamortized discount					985
Commercial | Substandard
Origination Year
Prior	299		299
2022	1		1
Total	300		300
Gross Charge-offs
Loans and leases receivable net of unamortized discount					327
Consumer and Other
Origination Year
Prior	603		603
2019	32		32
2020	161		161
2021	669		669
2022	430		430
2023	487		487
Revolving Loans	558		558
Total	2,940		2,940
Gross Charge-offs
Total Loans	14		29
Loans and leases receivable net of unamortized discount	2,940		2,940		3,048
Consumer and Other | Pass
Origination Year
Prior	603		603
2019	32		32
2020	161		161
2021	669		669
2022	430		430
2023	487		487
Revolving Loans	355		355
Total	2,737		2,737
Gross Charge-offs
Loans and leases receivable net of unamortized discount					2,700
Consumer and Other | Marginal
Origination Year
Revolving Loans	203		203
Total	$ 203		$ 203
Gross Charge-offs
Loans and leases receivable net of unamortized discount					$ 348

Loans and Allowance for Credi_7

Loans and Allowance for Credit Losses - Aging (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Past due financing receivables
Current Balance	$ 1,277,763
Total Financing Receivables	1,277,763	$ 1,232,866
Recorded Investment >90 Days Past Due and Accruing	252	45
Unamortized discounts on acquired loans		1,700
Current
Past due financing receivables
Current Balance	1,273,202
Current Balance		1,230,502
Nonaccrual loans	1,400	623
Past Due
Past due financing receivables
Current Balance	4,561
Current Balance		2,364
30-59 Days Past Due
Past due financing receivables
Current Balance	438
Current Balance		1,477
Nonaccrual loans	133	916
60-89 Days Past Due
Past due financing receivables
Current Balance	2,952
Current Balance		227
Nonaccrual loans	40
Greater than 90 Days Past Due
Past due financing receivables
Current Balance	1,171
Current Balance		660
Nonaccrual loans	918	615
Nonresidential
Past due financing receivables
Current Balance	753,126
Home Equity Loans
Past due financing receivables
Current Balance	30,428
Real Estate Mortgage | Construction and Land Development
Past due financing receivables
Current Balance	108,390
Total Financing Receivables	108,390	117,296
Real Estate Mortgage | Construction and Land Development | Current
Past due financing receivables
Current Balance	108,144
Current Balance		117,037
Real Estate Mortgage | Construction and Land Development | Past Due
Past due financing receivables
Current Balance	246
Current Balance		259
Real Estate Mortgage | Construction and Land Development | Greater than 90 Days Past Due
Past due financing receivables
Current Balance	246
Current Balance		259
Real Estate Mortgage | Residential Real Estate
Past due financing receivables
Current Balance	242,878
Total Financing Receivables	242,878	229,904
Recorded Investment >90 Days Past Due and Accruing	252
Real Estate Mortgage | Residential Real Estate | Current
Past due financing receivables
Current Balance	242,290
Current Balance		228,679
Real Estate Mortgage | Residential Real Estate | Past Due
Past due financing receivables
Current Balance	588
Current Balance		1,225
Real Estate Mortgage | Residential Real Estate | 30-59 Days Past Due
Past due financing receivables
Current Balance	260
Current Balance		949
Real Estate Mortgage | Residential Real Estate | 60-89 Days Past Due
Past due financing receivables
Current Balance	76
Current Balance		225
Real Estate Mortgage | Residential Real Estate | Greater than 90 Days Past Due
Past due financing receivables
Current Balance	252
Current Balance		51
Real Estate Mortgage | Nonresidential
Past due financing receivables
Current Balance	753,126
Total Financing Receivables	753,126	722,620
Real Estate Mortgage | Nonresidential | Current
Past due financing receivables
Current Balance	749,577
Current Balance		721,841
Real Estate Mortgage | Nonresidential | Past Due
Past due financing receivables
Current Balance	3,549
Current Balance		779
Real Estate Mortgage | Nonresidential | 30-59 Days Past Due
Past due financing receivables
Current Balance		474
Real Estate Mortgage | Nonresidential | 60-89 Days Past Due
Past due financing receivables
Current Balance	2,876
Real Estate Mortgage | Nonresidential | Greater than 90 Days Past Due
Past due financing receivables
Current Balance	673
Current Balance		305
Real Estate Mortgage | Home Equity Loans
Past due financing receivables
Current Balance	30,428
Total Financing Receivables	30,428	31,445
Recorded Investment >90 Days Past Due and Accruing		45
Real Estate Mortgage | Home Equity Loans | Current
Past due financing receivables
Current Balance	30,250
Current Balance		31,346
Real Estate Mortgage | Home Equity Loans | Past Due
Past due financing receivables
Current Balance	178
Current Balance		99
Real Estate Mortgage | Home Equity Loans | 30-59 Days Past Due
Past due financing receivables
Current Balance	178
Current Balance		54
Real Estate Mortgage | Home Equity Loans | Greater than 90 Days Past Due
Past due financing receivables
Current Balance		45
Commercial
Past due financing receivables
Current Balance	140,001
Total Financing Receivables	140,001	128,553
Commercial | Current
Past due financing receivables
Current Balance	140,001
Current Balance		128,553
Consumer and Other
Past due financing receivables
Current Balance	2,940
Total Financing Receivables	2,940	3,048
Consumer and Other | Current
Past due financing receivables
Current Balance	$ 2,940
Current Balance		3,046
Consumer and Other | Past Due
Past due financing receivables
Current Balance		2
Consumer and Other | 60-89 Days Past Due
Past due financing receivables
Current Balance		$ 2

Loans and Allowance for Credi_8

Loans and Allowance for Credit Losses - Collateral Dependent Loans (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 2,817
Allowance for Credit Losses	282
Real Estate Secured Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	2,518
Non-Real Estate Secured Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	299
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	299
Allowance for Credit Losses	282
Commercial | Non-Real Estate Secured Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	299
Construction and Land Development | Real Estate Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	246
Construction and Land Development | Real Estate Mortgage | Real Estate Secured Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	246
Residential Real Estate | Real Estate Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	1,330
Residential Real Estate | Real Estate Mortgage | Real Estate Secured Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	1,330
Nonresidential | Real Estate Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	890
Nonresidential | Real Estate Mortgage | Real Estate Secured Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	890
Home Equity Loans | Real Estate Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	52
Home Equity Loans | Real Estate Mortgage | Real Estate Secured Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 52

Loans and Allowance for Credi_9

Loans and Allowance for Credit Losses - Impaired loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jun. 30, 2023
Impaired loans
Impaired loans with specific reserves - Recorded Investment	$ 337
Impaired loans with specific reserves - Unpaid Principal Balance	361
Impaired loans with specific reserves - Interest Income Recognized	46
Impaired loans with specific reserves - Specific Reserve	290
Impaired loans with specific reserves - Average Recorded Investment	386
Impaired loans with no specific reserves - Recorded Investment	4,492
Impaired loans with no specific reserves - Unpaid Principal Balance	4,492
Impaired loans with no specific reserves - Interest Income Recognized	347
Impaired loans with no specific reserves - Average Recorded Investment	6,031
Impaired loans specific reserves - Recorded Investment	4,829
Impaired loans specific reserves - Unpaid Principal Balance	4,853
Impaired loans specific reserves - Interest Income Recognized	393
Impaired loans specific reserves - Average Recorded Investment	6,417
Loans
Carrying amount	1,232,866	$ 1,277,763
Unamortized discounts on acquired loans	1,700
PCD loans
Loans
Carrying amount	1,056
Unamortized discounts on acquired loans	414
Real Estate Mortgage | Construction and Land Development
Impaired loans
Impaired loans with specific reserves - Recorded Investment	11
Impaired loans with specific reserves - Unpaid Principal Balance	24
Impaired loans with specific reserves - Interest Income Recognized	1
Impaired loans with specific reserves - Specific Reserve	8
Impaired loans with specific reserves - Average Recorded Investment	18
Impaired loans with no specific reserves - Recorded Investment	248
Impaired loans with no specific reserves - Unpaid Principal Balance	248
Impaired loans with no specific reserves - Interest Income Recognized	2
Impaired loans with no specific reserves - Average Recorded Investment	249
Loans
Carrying amount	117,296	108,390
Real Estate Mortgage | Residential Real Estate
Impaired loans
Impaired loans with no specific reserves - Recorded Investment	1,748
Impaired loans with no specific reserves - Unpaid Principal Balance	1,748
Impaired loans with no specific reserves - Interest Income Recognized	42
Impaired loans with no specific reserves - Average Recorded Investment	1,797
Loans
Carrying amount	229,904	242,878
Real Estate Mortgage | Nonresidential
Impaired loans
Impaired loans with no specific reserves - Recorded Investment	2,442
Impaired loans with no specific reserves - Unpaid Principal Balance	2,442
Impaired loans with no specific reserves - Interest Income Recognized	301
Impaired loans with no specific reserves - Average Recorded Investment	3,932
Loans
Carrying amount	722,620	753,126
Real Estate Mortgage | Home Equity Loans
Impaired loans
Impaired loans with no specific reserves - Recorded Investment	54
Impaired loans with no specific reserves - Unpaid Principal Balance	54
Impaired loans with no specific reserves - Interest Income Recognized	2
Impaired loans with no specific reserves - Average Recorded Investment	53
Loans
Carrying amount	31,445	30,428
Commercial
Impaired loans
Impaired loans with specific reserves - Recorded Investment	326
Impaired loans with specific reserves - Unpaid Principal Balance	337
Impaired loans with specific reserves - Interest Income Recognized	45
Impaired loans with specific reserves - Specific Reserve	282
Impaired loans with specific reserves - Average Recorded Investment	368
Loans
Carrying amount	128,553	140,001
Consumer and Other
Loans
Carrying amount	$ 3,048	$ 2,940

Loans and Allowance for Cred_10

Loans and Allowance for Credit Losses - Acquired loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Acquired loans
Carrying amount	$ 1,277,763	$ 1,232,866
Acquired Loans
Acquired loans
Outstanding balance		138,576
Carrying amount		136,848
PCD loans
Acquired loans
Outstanding balance		1,470
Carrying amount		1,056
Non PCI loans
Acquired loans
Outstanding balance		137,106
Carrying amount		$ 135,792

Loans and Allowance for Cred_11

Loans and Allowance for Credit Losses - Accretable Yield (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Changes in accretable yield under ASC 310-20:
Commitments to loan additional funds to borrowers of restructured, impaired, or non-accrual loans		$ 0		$ 0
PCD loans
Changes in accretable yield under ASC 310-20:
Accretion	$ (19)		$ (55)
Non PCI loans
Changes in accretable yield under ASC 310-20:
Balance at beginning of period		1,896
Accretion		(392)
Balance at end of period		$ 1,504		$ 1,896

Loans and Allowance for Cred_12

Loans and Allowance for Credit Losses - Off-Balance-Sheet Arrangements (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Allowance for credit losses on off-balance-sheet commitments
Beginning balance	$ 658	$ 265
Credit loss expense	11	(108)
Ending balance	669	669
Cumulative Effect Adjustment | Accounting Standards Update 2016-13 [Member]
Allowance for credit losses on off-balance-sheet commitments
Beginning balance		512
Ending balance	$ 512	$ 512

Borrowings and Notes Payable -

Borrowings and Notes Payable - Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Advances from Federal Home Loan Banks
Credit facility from FHLB	$ 415,400	$ 415,400
Remaining credit availability	364,500	364,500
Short-term borrowings with the Federal Home Loan Bank	31,100	31,100	$ 42,000	[1]
Principal balances outstanding on pledged loans	291,000	291,000	296,700
Federal Home Loan Bank of Atlanta
Advances from Federal Home Loan Banks
Outstanding Balance	50,900	50,900	61,800
Average short-term borrowings	28,900	31,500	263
Short-term borrowings with the Federal Home Loan Bank	31,100	31,100	42,000
Federal Home Loan Bank of Atlanta | FHLB 1.29% Fixed Rate Hybrid Advance 1 Maturing March 2024
Advances from Federal Home Loan Banks
Outstanding Balance	$ 9,900	$ 9,900	$ 9,900
Interest rate	1.29%	1.29%	1.29%
Federal Home Loan Bank of Atlanta | FHLB 1.29% Fixed Rate Hybrid Advance 2 Maturing March 2024
Advances from Federal Home Loan Banks
Outstanding Balance	$ 9,900	$ 9,900	$ 9,900
Interest rate	1.29%	1.29%	1.29%
Federal Home Loan Bank of Atlanta | FHLB Daily Rate Credit Advance Maturing December 2023
Advances from Federal Home Loan Banks
Outstanding Balance	$ 21,100	$ 21,100	$ 42,000
Interest rate	5.32%	5.32%	4.57%
Federal Home Loan Bank of Atlanta | FHLB 5.24% Fixed Rate Advance Maturing July 2023
Advances from Federal Home Loan Banks
Outstanding Balance	$ 10,000	$ 10,000
Interest rate	5.24%	5.24%
[1] * Derived from audited consolidated financial statements.

Borrowings and Notes Payable _2

Borrowings and Notes Payable - Subordinated Loans (Details) - USD ($) $ in Millions	1 Months Ended
	Jun. 30, 2020	Jan. 31, 2018
Subordinated loan maturing April 2028
Long-Term Obligations
Aggregate principal amount		$ 4.5
Interest rate		6.875%
Subordinated Loan Maturing July 2030
Long-Term Obligations
Aggregate principal amount	$ 18.1
Interest rate	6%
Subordinated Loan Maturing July 2030 | 3-month SOFR
Long-Term Obligations
Basis spread on variable rate effective after July 1, 2025	5.90%

Borrowings and Notes Payable _3

Borrowings and Notes Payable - Partners Bank Debt (Details) - USD ($) $ in Thousands			6 Months Ended
	Apr. 30, 2015	Dec. 14, 2012	Jun. 30, 2023
Deed of Trust Loan
Long-Term Obligations
Amortization period	25 years
Interest rate	3.60%
Period contractual interest rate remains fixed	10 years
Deed of Trust Loan | 10 Year US Treasury (UST) Interest Rate
Long-Term Obligations
Basis spread on variable rate	3%
Virginia Partners Bank | 410 William Street, Fredericksburg, VA
Long-Term Obligations
Ownership percentage			50%
Ownership percentage acquired		50%
Virginia Partners Bank | 410 William Street, Fredericksburg, VA | Deed of Trust Loan
Long-Term Obligations
Ownership percentage acquired		50%
Percentage of the remaining deed of trust loan assumed		50%
Indemnification of debt obligations		$ 886
Outstanding debt balance			$ 617
Loan discount			$ 15

Borrowings and Notes Payable _4

Borrowings and Notes Payable - Secured Credit Facility (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Credit Facilities
Interest expense	$ 3,984	$ 1,634	$ 6,807	$ 3,382
Asset Pledged as Collateral
Credit Facilities
Amortized cost	10,200		10,200		$ 10,400
Fair value	8,900		8,900		9,100
Secured Credit
Credit Facilities
Maximum borrowing capacity	5,000		5,000
Borrowing outstanding	0		0
Amortized cost	3		3
Fair value	3		3
Unsecured Credit
Credit Facilities
Maximum borrowing capacity	144,000		144,000
Borrowing outstanding	0		0
Federal Reserve Bank Discount Window
Credit Facilities
Borrowing outstanding	0		0		0
Federal Reserve Bank Discount Window | Asset Pledged as Collateral
Credit Facilities
Amortized cost	3,300		3,300		3,400
Fair value	2,700		2,700		2,800
Johnson Mortgage Company LLC | Secured Credit
Credit Facilities
Maximum borrowing capacity	3,000		3,000
Borrowing outstanding	0		0		$ 0
Interest expense	$ 7	$ 15	$ 23	$ 29
Johnson Mortgage Company LLC | Secured Credit | 30-day LIBOR
Credit Facilities
Variable rate basis			one month LIBOR
Basis spread on variable rate			2.25%
Rounding factor for effective interest rate			0.125%
Effective interest rate	7.75%		7.75%

Borrowings and Notes Payable _5

Borrowings and Notes Payable - Maturities (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Maturities on debt
2023	$ 31,089
2024	19,778
Thereafter	22,873
Total	$ 73,740

Lease Commitments - Lease Infor

Lease Commitments - Lease Information (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($) lease
Leases
Number of lease locations	17
Number of operating leases	15
Number of finance leases	2
Options to renew	true
Renewal term of the lease	5 years
Maximum
Leases
Initial term of leases not recorded on the balance sheet	12 months
Threshold of discounted present value of future cash flows below which a lease is not recorded on the balance sheet | $	$ 25
Term of lease including available lease renewal options	15 years

Lease Commitments - Supplementa

Lease Commitments - Supplemental Lease Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Dec. 31, 2022
Balance Sheet
Right-of-use asset, operating lease	$ 4,826		$ 4,826	$ 5,065	[1]
Lease liability, operating lease	5,230		5,230	5,465	[1]
Right-of-use asset, finance lease	1,482		1,482	1,550	[1]
Lease Liabilities, finance lease	1,941		1,941	2,006	[1]
Income Statement
Operating lease cost classified as premises and equipment	250	$ 286	510	572
Finance lease cost classified as interest on borrowings	$ 14	$ 15	$ 28	$ 30
Lease cost information
Weighted average lease term - Operating Leases	7 years 7 months 6 days		7 years 7 months 6 days	7 years 7 months 2 days
Weighted average lease term - Finance Leases	10 years 7 months 2 days		10 years 7 months 2 days	11 years 18 days
Weighted average discount rate - Operating Leases	2.41%		2.41%	2.31%
Weighted average discount rate - Finance Leases	2.84%		2.84%	2.84%
Operating outgoing cash flows from operating leases			$ 486	$ 514
Operating outgoing cash flows from finance leases			$ 92	$ 89
[1] * Derived from audited consolidated financial statements.

Lease Commitments - Maturities

Lease Commitments - Maturities of lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	[1]
Operating Leases:
One year or less	$ 836
One to three years	1,362
Three to five years	1,065
Over 5 years	2,606
Total undiscounted cash flows	5,869
Less: Discount	(639)
Operating lease liabilities	5,230	$ 5,465
Finance Leases:
One year or less	191
One to three years	403
Three to five years	408
Over 5 years	1,263
Total undiscounted cash flows	2,265
Less: Discount	(324)
Lease Liabilities, finance lease	$ 1,941	$ 2,006
[1] * Derived from audited consolidated financial statements.

Stock Option Plans - Liberty St

Stock Option Plans - Liberty Stock Option Plan (Details) - Liberty 2004 Stock Option Plan - Employee Stock Option [Member]	1 Months Ended		6 Months Ended	12 Months Ended
	Feb. 28, 2018 $ / shares shares	Feb. 28, 2014	Jun. 30, 2023 $ / shares shares	Dec. 31, 2022 $ / shares shares
Equity Compensation
Contractual life		10 years
Vesting period (in years)		5 years
Conversion ratio, stock based compensation	0.2857
Number of options converted	48,225
Exercise price of option converted | $ / shares	$ 1.18
Number of options outstanding after conversion	13,771
Shares
Outstanding at the beginning of year			4,733
Forfeited			(4,733)
Outstanding at the end of year				4,733
Weighted Average Exercise Price
Balance at the beginning of year | $ / shares			$ 4.14
Forfeited | $ / shares			$ 4.14
Balance at the end of year | $ / shares	$ 4.14			$ 4.14
Weighted-Average Remaining Contractual Life
Outstanding at beginning of year				2 months 23 days
Outstanding at end of year				2 months 23 days

Stock Option Plans - Partners S

Stock Option Plans - Partners Stock Option Plan (Details) - Partners Stock Option Plan - Employee Stock Option [Member] - $ / shares		12 Months Ended
	Nov. 15, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2015	Jun. 30, 2023	Dec. 31, 2022
Equity Compensation
Vesting period (in years)		3 years	3 years
Percentage of options vesting at the merger	100%
Number of options converted	149,200
Exercise price of option converted	$ 10.52
Number of options outstanding after conversion	256,294
Exercise price of option outstanding	$ 6.13				$ 6.73	$ 6.59
Conversion ratio, stock based compensation	1.7179
Maximum
Equity Compensation
Contractual life				10 years

Stock Option Plans - Partners_2

Stock Option Plans - Partners Stock Option Activity (Details) - Partners Stock Option Plan - Employee Stock Option [Member] - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Outstanding shares
Outstanding at the beginning of year	88,467
Exercised	(11,853)
Forfeited	(1,546)
Outstanding at the end of year	75,068	88,467
Options exercisable at end of year	75,068
Weighted Average Exercise Price
Balance at the beginning of year	$ 6.59
Exercised	5.83
Forfeited	5.83
Balance at the end of year	6.73	$ 6.59
Options exercisable at end of year	$ 6.73
Weighted-Average Remaining Contractual Life
Outstanding at beginning of year	2 years 10 months 6 days	2 years 10 months 6 days
Outstanding at end of year	2 years 10 months 6 days	2 years 10 months 6 days
Intrinsic Value	$ 0

Stock Option Plans - Valuation

Stock Option Plans - Valuation Assumptions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Employee Stock Option [Member]
Fair value assumptions
Stock-based compensation expense recognized in earnings	$ 0	$ 0	$ 0	$ 0

Incentive Stock Plan (Details)

Incentive Stock Plan (Details) $ / shares in Units, $ in Thousands					3 Months Ended	6 Months Ended
	Dec. 10, 2021 shares	Oct. 27, 2021 installment $ / shares shares	Oct. 12, 2021 installment $ / shares shares	Apr. 28, 2021 employee installment $ / shares shares	Jun. 30, 2023 USD ($) $ / shares shares	Jun. 30, 2023 USD ($) $ / shares shares	May 19, 2021 shares
Shares
Non-vested balance at beginning of period (in shares)						18,669
Non-vested balance at end of period (in shares)					9,338	9,338
2021 Incentive Stock Plan | Maximum
Equity Compensation
Shares authorized							1,250,000
2021 Incentive Stock Plan | Restricted stock
Incentive Stock Plan
Number of equal vesting installments | installment			3
Shares
Awarded (in shares)			68,000
Vested (in shares)	(40,000)
Weighted Average Grant Date Fair Value
Awarded (in dollars per share) | $ / shares		$ 8.72	$ 8.99	$ 7.65
Stock-based compensation expense recognized in earnings | $					$ 23	$ 47
Stock based compensation expense, net of tax | $					17	35
Total unrecognized compensation cost related to non-vested restricted stock units | $					$ 87	$ 87
Weighted-average period over which unrecognized compensation cost will be recognized						10 months 24 days
2021 Incentive Stock Plan | Restricted stock | Directors
Incentive Stock Plan
Number of equal vesting installments | installment		3
Shares
Awarded (in shares)		27,000
2021 Incentive Stock Plan | Restricted stock | Employees
Shares
Non-vested balance at beginning of period (in shares)						18,669
Vested (in shares)						(9,331)
Non-vested balance at end of period (in shares)					9,338	9,338
Weighted Average Grant Date Fair Value
Non-vested balance at beginning of period (in dollars per share) | $ / shares						$ 8.99
Vested (in dollars per share) | $ / shares						8.99
Non-vested balance at end of period (in dollars per share) | $ / shares					$ 8.99	$ 8.99
Employment Inducement | Restricted stock | Employees
Incentive Stock Plan
Number of employees granted shares | employee				2
Number of equal vesting installments | installment				3
Shares
Awarded (in shares)				58,824

Earnings Per Share - Basic and

Earnings Per Share - Basic and Diluted Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Basic EPS
Net Income Applicable to Basic Earnings Per Common Share	$ 3,764	$ 3,179	$ 7,094	$ 5,288
Weighted Average Shares Outstanding	17,985,577	17,962,000	17,985,267	17,960,000
Basic EPS	$ 0.209	$ 0.177	$ 0.394	$ 0.294
Effect of dilutive securities:
Effect of dilutive stock awards, shares		32,000	9,000	73,000
Effect of dilutive stock awards, per share				$ (0.001)
Diluted EPS
Net Income Applicable to Basic Earnings Per Common Share	$ 3,764	$ 3,179	$ 7,094	$ 5,288
Weighted Average Shares Outstanding	17,986,000	17,994,000	17,994,000	18,033,000
Diluted EPS	$ 0.209	$ 0.177	$ 0.394	$ 0.293

Regulatory Capital Requiremen_3

Regulatory Capital Requirements (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Minimum | FDIC
Regulatory Capital Requirements
Common Equity Tier 1 Capital (to risk weighted assets), ratio (as a percent)	0.045
Tier 1 Capital (to risk weighted assets), ratio (as a percent)	0.060
Total Capital (to risk weighted assets), ratio (as a percent)	0.080
Tier 1 Leverage ratio (as a percent)	0.040
Basel III Capital Rules | FDIC
Regulatory Capital Requirements
Capital conservation buffer ratio	2.50%
Basel III Capital Rules | Minimum | FDIC
Regulatory Capital Requirements
Common Equity Tier 1 Capital (to risk weighted assets), ratio (as a percent)	0.070
Tier 1 Capital (to risk weighted assets), ratio (as a percent)	0.085
Total Capital (to risk weighted assets), ratio (as a percent)	0.105
Partners Bancorp
Regulatory Capital Requirements
Amount available for payment of dividends to stockholders without regulatory approval	$ 22.8	$ 21.1
Subsidiaries
Regulatory Capital Requirements
Amount available for payment of dividends to stockholders without regulatory approval	$ 27.4	$ 25

Regulatory Capital Requiremen_4

Regulatory Capital Requirements - Bank's capital amounts (Details) $ in Thousands	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
The Bank of Delmarva
Total Capital Ratio (To Risk Weighted Assets)
Actual	$ 104,602	$ 98,910
Actual, ratio	0.140	0.134
For Capital Adequacy Purposes	$ 78,573	$ 77,763
For Capital Adequacy Purposes, ratio	0.105	0.105
To Be Well Capitalized Under Prompt Corrective Action Provisions	$ 74,832	$ 74,060
To Be Well Capitalized Under Prompt Corrective Action Provisions, ratio	0.100	0.100
Tier I Capital Ratio (To Risk Weighted Assets)
Actual	$ 95,238	$ 89,645
Actual, ratio	0.127	0.121
For Capital Adequacy Purposes	$ 63,607	$ 62,951
For Capital Adequacy Purposes, ratio	0.085	0.085
To Be Well Capitalized Under Prompt Corrective Action Provisions	$ 59,865	$ 59,248
To Be Well Capitalized Under Prompt Corrective Action Provisions, ratio	0.080	0.080
Common Equity Tier I Ratio (To Risk Weighted Assets)
Actual	$ 95,238	$ 89,645
Actual, ratio	0.127	0.121
For Capital Adequacy Purposes	$ 52,382	$ 51,842
For Capital Adequacy Purposes, ratio	0.070	0.070
To Be Well Capitalized Under Prompt Corrective Action Provisions	$ 48,640	$ 48,139
To Be Well Capitalized Under Prompt Corrective Action Provisions, ratio	0.065	0.065
Tier I Leverage Ratio (To Average Assets)
Actual	$ 95,238	$ 89,645
Actual, ratio	0.106	0.093
For Capital Adequacy Purposes	$ 36,056	$ 38,416
For Capital Adequacy Purposes, ratio	0.040	0.040
To Be Well Capitalized Under Prompt Corrective Action Provisions	$ 45,070	$ 48,020
To Be Well Capitalized Under Prompt Corrective Action Provisions, ratio	0.050	0.050
Virginia Partners Bank
Total Capital Ratio (To Risk Weighted Assets)
Actual	$ 65,379	$ 63,558
Actual, ratio	0.111	0.113
For Capital Adequacy Purposes	$ 62,077	$ 58,862
For Capital Adequacy Purposes, ratio	0.105	0.105
To Be Well Capitalized Under Prompt Corrective Action Provisions	$ 59,121	$ 56,059
To Be Well Capitalized Under Prompt Corrective Action Provisions, ratio	0.100	0.100
Tier I Capital Ratio (To Risk Weighted Assets)
Actual	$ 60,092	$ 58,895
Actual, ratio	0.102	0.105
For Capital Adequacy Purposes	$ 50,253	$ 47,650
For Capital Adequacy Purposes, ratio	0.085	0.085
To Be Well Capitalized Under Prompt Corrective Action Provisions	$ 47,297	$ 44,848
To Be Well Capitalized Under Prompt Corrective Action Provisions, ratio	0.080	0.080
Common Equity Tier I Ratio (To Risk Weighted Assets)
Actual	$ 60,092	$ 58,895
Actual, ratio	0.102	0.105
For Capital Adequacy Purposes	$ 41,385	$ 39,242
For Capital Adequacy Purposes, ratio	0.070	0.070
To Be Well Capitalized Under Prompt Corrective Action Provisions	$ 38,429	$ 36,439
To Be Well Capitalized Under Prompt Corrective Action Provisions, ratio	0.065	0.065
Tier I Leverage Ratio (To Average Assets)
Actual	$ 60,092	$ 58,895
Actual, ratio	0.095	0.089
For Capital Adequacy Purposes	$ 25,330	$ 26,348
For Capital Adequacy Purposes, ratio	0.040	0.040
To Be Well Capitalized Under Prompt Corrective Action Provisions	$ 31,662	$ 32,935
To Be Well Capitalized Under Prompt Corrective Action Provisions, ratio	0.050	0.050

Fair Values of Financial Inst_3

Fair Values of Financial Instruments - Estimated Fair Value and Related Carrying Values of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financial assets:
Restricted stock	$ 6,163	$ 6,512	[1]
Bank owned life insurance	18,940	18,706	[1]
Financial liabilities:
Subordinated notes payable	22,238	22,215	[1]
Other borrowings	602	613	[1]
Carrying Amount
Financial assets:
Cash and due from banks	16,011	14,678
Interest bearing deposits	43,128	103,922
Federal funds sold	17,478	22,990
Available for sale	129,259	133,657
Loans held for sale	519	1,314
Loans, net of allowance for credit losses	1,261,546	1,218,551
Accrued interest receivable	4,440	4,566
Restricted stock	6,163	6,512
Other investments	5,364	4,888
Bank owned life insurance	18,940	18,706
Financial liabilities:
Deposits	1,318,482	1,339,605
Accrued interest payable on deposits	907	267
FHLB advances	50,900	61,800
Subordinated notes payable	22,238	22,215
Other borrowings	602	613
Estimated Fair Value
Financial assets:
Cash and due from banks	16,011	14,678
Interest bearing deposits	43,128	103,922
Federal funds sold	17,478	22,990
Available for sale	129,259	133,657
Loans held for sale	519	1,314
Loans, net of allowance for credit losses	1,195,625	1,165,190
Accrued interest receivable	4,440	4,566
Restricted stock	6,163	6,512
Other investments	5,364	4,888
Bank owned life insurance	18,940	18,706
Financial liabilities:
Deposits	1,312,787	1,331,267
Accrued interest payable on deposits	907	267
FHLB advances	50,308	60,990
Subordinated notes payable	25,876	26,364
Other borrowings	602	613
Level 1 | Estimated Fair Value
Financial assets:
Cash and due from banks	16,011	14,678
Interest bearing deposits	43,128	103,922
Federal funds sold	17,478	22,990
Level 2 | Estimated Fair Value
Financial assets:
Available for sale	129,259	133,657
Loans held for sale	519	1,314
Accrued interest receivable	4,440	4,566
Restricted stock	6,163	6,512
Other investments	5,364	4,888
Bank owned life insurance	18,940	18,706
Financial liabilities:
Deposits	1,006,938	1,082,084
Accrued interest payable on deposits	907	267
FHLB advances	50,308	60,990
Subordinated notes payable	25,876	26,364
Level 3 | Estimated Fair Value
Financial assets:
Loans, net of allowance for credit losses	1,195,625	1,165,190
Financial liabilities:
Deposits	305,849	249,183
Other borrowings	$ 602	$ 613
[1] * Derived from audited consolidated financial statements.

Fair Value Measurements - Recur

Fair Value Measurements - Recurring Basis (Details) - Measured on a recurring basis - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Securities available for sale:
Total securities available for sale	$ 129,259	$ 133,657
Obligations of U.S. Government agencies
Securities available for sale:
Total securities available for sale	15,531	15,466
Obligations of States and political subdivisions
Securities available for sale:
Total securities available for sale	27,255	27,065
Mortgage-backed securities
Securities available for sale:
Total securities available for sale	84,186	88,740
Subordinated debt investments
Securities available for sale:
Total securities available for sale	2,287	2,386
Level 2
Securities available for sale:
Total securities available for sale	129,259	133,657
Level 2 | Obligations of U.S. Government agencies
Securities available for sale:
Total securities available for sale	15,531	15,466
Level 2 | Obligations of States and political subdivisions
Securities available for sale:
Total securities available for sale	27,255	27,065
Level 2 | Mortgage-backed securities
Securities available for sale:
Total securities available for sale	84,186	88,740
Level 2 | Subordinated debt investments
Securities available for sale:
Total securities available for sale	$ 2,287	$ 2,386

Fair Value Measurements - Non-r

Fair Value Measurements - Non-recurring Basis (Details) - Fair Value, Nonrecurring	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Securities available for sale:
Fair Value, assets	$ 0	$ 3,000
Impaired Loans
Securities available for sale:
Fair Value, assets		3,000
OREO
Securities available for sale:
Fair Value, assets	$ 0	0
Level 3
Securities available for sale:
Fair Value, assets		3,000
Level 3 | Impaired Loans
Securities available for sale:
Fair Value, assets		$ 3,000
Debt Instrument, Measurement Input		0.08
Debt Instrument, Valuation Technique [Extensible List]		us-gaap:ValuationTechniqueConsensusPricingModelMember

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Changes in goodwill
Change in goodwill during the period	$ 0	$ 0

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Core Deposit Intangible (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Changes in the core deposit intangible
Balance at the beginning of the period	[1]			$ 1,540
Amortization		$ (119)	$ (132)	(240)	$ (266)
Balance at the end of the period		1,300		1,300		$ 1,540	[1]
Core deposit intangible
Changes in the core deposit intangible
Balance at the beginning of the period				1,540	$ 2,060	2,060
Amortization				(240)		(520)
Balance at the end of the period		$ 1,300		$ 1,300		$ 1,540
Liberty Bell Bank | Core deposit intangible
Intangibles
Amortization period		7 years		7 years
Virginia Partners Bank | Core deposit intangible
Intangibles
Amortization period		120 months		120 months
[1] * Derived from audited consolidated financial statements.

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Core Deposit Intangible Amortization (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022		Dec. 31, 2021
Remaining amortization
Total	$ 1,300	$ 1,540	[1]
Core deposit intangible
Remaining amortization
2023	227
2024	415
2025	246
2026	182
2027	129
Thereafter	101
Total	$ 1,300	$ 1,540		$ 2,060
[1] * Derived from audited consolidated financial statements.

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Deposits Purchased Premium and Discount (Details) - Deposits Purchased Premium (Discount) Net - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Deposits Purchased Premium (Discount)
Accretion period	5 years
Balance at beginning of period	$ (3)	$ (9)
Accretion, net	1	6
Balance at end of period	$ (2)	$ (3)

Goodwill and Intangible Asset_6

Goodwill and Intangible Assets - Deposits Purchased Premium and Discount, Amortization and Accretion (Details) - Deposits Purchased Premium (Discount) Net - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Remaining accretion
2023	$ 1
2024	1
Net deposit discount	$ 2	$ 3	$ 9

Goodwill and Intangible Asset_7

Goodwill and Intangible Assets - Effect of Acquisition Accounting Adjustments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Intangibles
Net impact of income before taxes	$ 56	$ (17)	$ 45	$ 175
Loans Payable
Intangibles
Net impact of income before taxes	(1)	(1)	(2)	(2)
Core deposit intangible
Intangibles
Net impact of income before taxes	(119)	(132)	(240)	(266)
Loans
Intangibles
Net impact of income before taxes	177	118	288	448
Time Deposits
Intangibles
Net impact of income before taxes	$ (1)	$ (2)	$ (1)	$ (5)

Transaction with LINKBANCORP,_2

Transaction with LINKBANCORP, Inc. (Details) - $ / shares	Feb. 22, 2023	Jun. 30, 2023	Dec. 31, 2022
Pending merger transaction
Common stock, par value (in dollars per share)		$ 0.01	$ 0.01
Partners Bancorp
Pending merger transaction
Common stock, par value (in dollars per share)	$ 0.01
LINKBANCORP
Pending merger transaction
Common stock, par value (in dollars per share)	$ 0.01
LINKBANCORP | Partners Bancorp
Pending merger transaction
Shares to be received by shareholders for each share exchanged under merger agreement	1.15

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 01, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022		Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses		$ 16,217		$ 16,217		$ 14,315		$ 16,096
Reserve for unfunded credit commitments		669	$ 265	669	$ 265	265		$ 658	$ 265	$ 265
Retained earnings		67,097		67,097		62,854	[1]
Tax Effect		1,250	$ 926	2,436	$ 1,622
Cumulative Effect Adjustment | Accounting Standards Update 2016-13 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses						1,339
Reserve for unfunded credit commitments		$ 512		$ 512		512
Retained earnings	$ (1,412)					(1,400)
Tax Effect	$ 430					$ 430
[1] * Derived from audited consolidated financial statements.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 3,764	$ 3,179	$ 7,094	$ 5,288

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false