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Loans and Allowance for Loan and Lease Losses - (Tables)
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Schedule of composition of loan portfolio
The loan portfolio consisted of the following at:
 September 30, 2020December 31, 2019
(Dollars in thousands)AmountPercentAmountPercent
Commercial loans$614,737 48.1 %$409,420 36.2 %
Commercial real estate loans – owner occupied195,586 15.3 %219,483 19.5 %
Commercial real estate loans – all other199,911 15.6 %208,283 18.5 %
Residential mortgage loans – multi-family161,947 12.7 %176,523 15.7 %
Residential mortgage loans – single family13,764 1.1 %18,782 1.7 %
Construction and land development loans9,300 0.7 %2,981 0.3 %
Consumer loans83,736 6.5 %90,867 8.1 %
Gross loans1,278,981 100.0 %1,126,339 100.0 %
Deferred fee (income) costs, net1,871 4,783 
Allowance for loan and lease losses(17,485)(13,611)
Loans, net$1,263,367 $1,117,511 
Schedule of allowance for loan losses and loan balances Set forth below is a summary of the activity in the ALLL, by portfolio type, during the three and nine months ended September 30, 2020 and 2019:
(Dollars in thousands)CommercialReal  EstateConstruction and Land
Development		Consumer 
and Single
Family
Mortgages		UnallocatedTotal
ALLL in the three months ended September 30, 2020:
Balance at beginning of period$11,487 $4,733 $77 $1,869 $— $18,166 
Charge offs(839)— — (1)— (840)
Recoveries128 — — 31 — 159 
Provision156 (315)37 122 — — 
Balance at end of period$10,932 $4,418 $114 $2,021 $— $17,485 
ALLL in the nine months ended September 30, 2020:
Balance at beginning of period$8,883 $2,897 $34 $1,797 $— $13,611 
Charge offs(5,317)— — (84)— (5,401)
Recoveries187 — — 38 — 225 
Provision7,179 1,521 80 270 — 9,050 
Balance at end of period$10,932 $4,418 $114 $2,021 $— $17,485 
ALLL in the three months ended September 30, 2019:
Balance at beginning of period$6,809 $2,790 $119 $1,756 $— $11,474 
Charge offs(1,549)— — (2)— (1,551)
Recoveries58 — — 5 — 63 
Provision2,202 (45)(36)(21)— 2,100 
Balance at end of period$7,520 $2,745 $83 $1,738 $— $12,086 
ALLL in the nine months ended September 30, 2019:
Balance at beginning of period$8,071 $3,643 $426 $1,290 $76 $13,506 
Charge offs(7,337)— — (39)— (7,376)
Recoveries541 — — 15 — 556 
Provision6,245 (898)(343)472 (76)5,400 
Balance at end of period$7,520 $2,745 $83 $1,738 $— $12,086 
Set forth below is information regarding loan balances and the related ALLL, by portfolio type, as of September 30, 2020 and December 31, 2019.
(Dollars in thousands)CommercialReal  EstateConstruction and Land
Development		Consumer 
and Single
Family
Mortgages		UnallocatedTotal
ALLL balance at September 30, 2020 related to:
Loans individually evaluated for impairment$185 $— $— $— $— $185 
Loans collectively evaluated for impairment10,747 4,418 114 2,021 — 17,300 
Total$10,932 $4,418 $114 $2,021 $— $17,485 
Loan balance at September 30, 2020 related to:
Loans individually evaluated for impairment$10,166 $5,969 $— $— $— $16,135 
Loans collectively evaluated for impairment604,571 551,474 9,300 97,501 — 1,262,846 
Total$614,737 $557,443 $9,300 $97,501 $— $1,278,981 
ALLL balance at December 31, 2019 related to:
Loans individually evaluated for impairment$561 $— $— $— $— $561 
Loans collectively evaluated for impairment8,322 2,897 34 1,797 — 13,050 
Total$8,883 $2,897 $34 $1,797 $— $13,611 
Loan balance at December 31, 2019 related to:
Loans individually evaluated for impairment$9,056 $6,507 $— $— $— $15,563 
Loans collectively evaluated for impairment400,364 597,782 2,981 109,649 — 1,110,776 
Total$409,420 $604,289 $2,981 $109,649 $— $1,126,339 
Summary of delinquency status of loans by portfolio type The following table provides a summary of the delinquency status of loans by portfolio type at September 30, 2020 and December 31, 2019:
(Dollars in thousands)30-59 Days Past Due60-89 Days Past Due90 Days and GreaterTotal Past DueCurrentTotal Loans OutstandingLoans >90 Days and Accruing
At September 30, 2020
Commercial loans$6,817 $7,546 $7,814 $22,177 $592,560 $614,737 $1,854 
Commercial real estate loans – owner-occupied— — 97 97 195,489 195,586 — 
Commercial real estate loans – all other— 11,200 1,837 13,037 186,874 199,911 1,837 
Residential mortgage loans – multi-family— — — — 161,947 161,947 — 
Residential mortgage loans – single family— — — — 13,764 13,764 — 
Construction and land development loans— — — — 9,300 9,300 — 
Consumer loans53 — 145 198 83,538 83,736 — 
Total$6,870 $18,746 $9,893 $35,509 $1,243,472 $1,278,981 $3,691 
At December 31, 2019
Commercial loans$354 $1,361 $533 $2,248 $407,172 $409,420 $— 
Commercial real estate loans – owner-occupied749 — — 749 218,734 219,483 — 
Commercial real estate loans – all other— — — — 208,283 208,283 — 
Residential mortgage loans – multi-family— — — — 176,523 176,523 — 
Residential mortgage loans – single family— — — — 18,782 18,782 — 
Construction and land development loans— — — — 2,981 2,981 — 
Consumer loans312 3 — 315 90,552 90,867 — 
Total$1,415 $1,364 $533 $3,312 $1,123,027 $1,126,339 $— 
Schedule of loans on nonaccrual status by portfolio type
The following table provides information with respect to loans on nonaccrual status, by portfolio type, as of September 30, 2020 and December 31, 2019:
September 30, 2020December 31, 2019
(Dollars in thousands)
Nonaccrual loans:
Commercial loans$10,216 $9,101 
Commercial real estate loans – owner occupied6,303 6,507 
Consumer261 74 
Total(1)
$16,780 $15,682 
(1)    Nonaccrual loans may include loans that are currently considered performing loans.
Summary of loans by portfolio type and internal credit quality ratings The following table provides a summary of loans by portfolio type and our internal asset quality ratings as of September 30, 2020 and December 31, 2019:
September 30, 2020December 31, 2019
(Dollars in thousands)
Pass:
Commercial loans$536,255 $357,079 
Commercial real estate loans – owner occupied161,122 206,589 
Commercial real estate loans – all other199,912 208,283 
Residential mortgage loans – multi family161,576 176,523 
Residential mortgage loans – single family13,764 18,782 
Construction and land development loans9,300 2,981 
Consumer loans83,466 90,793 
Total pass loans$1,165,395 $1,061,030 
Special Mention:
Commercial loans$21,818 $21,894 
Commercial real estate loans – owner occupied6,931 6,387 
Residential mortgage loans – multi family371 — 
Total special mention loans$29,120 $28,281 
Substandard:
Commercial loans$55,104 $30,447 
Commercial real estate loans – owner occupied27,532 6,507 
Consumer loans270 74 
Total substandard loans$82,906 $37,028 
Doubtful:
Commercial loans$1,560 $— 
Total doubtful loans$1,560 $— 
Total Loans:$1,278,981 $1,126,339 
Schedule of Impaired Loans
The following table sets forth information regarding impaired loans, at September 30, 2020 and December 31, 2019:
September 30, 2020December 31, 2019
(Dollars in thousands)
Impaired loans:
Nonaccruing loans$16,650 $15,682 
Nonaccruing restructured loans(1)
130 — 
Accruing restructured loans(1)(2)
— — 
Total impaired loans$16,780 $15,682 
Impaired loans less than 90 days delinquent and included in total impaired loans$10,449 $15,149 
(1)As of December 31, 2019, we had no restructured loans.
(2)See “Troubled Debt Restructurings” below for a description of accruing restructured loans at September 30, 2020 and December 31, 2019.
The table below contains additional information with respect to impaired loans, by portfolio type, as of September 30, 2020 and December 31, 2019:
September 30, 2020December 31, 2019
Recorded InvestmentUnpaid Principal BalanceRelated Allowance (1)Recorded InvestmentUnpaid Principal BalanceRelated Allowance (1)
(Dollars in thousands)
No allowance recorded:
Commercial loans$9,244 $17,559 $— $7,996 $12,090 $— 
Commercial real estate loans – owner occupied6,303 6,839 — 6,507 6,784 — 
Consumer loans261 284 — 74 101 — 
Total$15,808 $24,682 $— $14,577 $18,975 $— 
With allowance recorded:
Commercial loans$972 $1,054 $185 $1,105 $1,122 $561 
Total$972 $1,054 $185 $1,105 $1,122 $561 
All impaired loans
Commercial loans$10,216 $18,613 $185 $9,101 $13,212 $561 
Commercial real estate loans – owner occupied6,303 6,839 — 6,507 6,784 — 
Consumer loans261 284 — 74 101 — 
Total$16,780 $25,736 $185 $15,682 $20,097 $561 
(1)When the discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, then specific reserves are not required to be set aside for the loan within the ALLL. This typically occurs when the impaired loans have been partially charged-off and/or there have been interest payments received and applied to the balance of the principal outstanding.
Average balances and interest income recognized on impaired loans, by portfolio type, for the three and nine months ended September 30, 2020 and 2019 were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Average BalanceInterest Income RecognizedAverage BalanceInterest Income RecognizedAverage BalanceInterest Income RecognizedAverage BalanceInterest Income Recognized
(Dollars in thousands)
No allowance recorded:
Commercial loans$12,226 $— $3,658 $190 $11,202 $70 $2,786 $394 
Commercial real estate loans – owner occupied6,264 23 3,524 118 6,352 53 2,171 237 
Commercial real estate loans – all other— — — — — — — — 
Residential mortgage loans – single family— — — — — — — — 
Consumer loans259 — 95 — 194 2 68 2 
Total18,749 23 7,277 308 17,748 125 5,025 633 
With allowance recorded:
Commercial loans1,982 — — — 1,543 — — — 
Total1,982 — — — 1,543 — — — 
Total
Commercial loans14,208 — 3,658 190 12,745 70 2,786 394 
Commercial real estate loans – owner occupied6,264 23 3,524 118 6,352 53 2,171 237 
Commercial real estate loans – all other— — — — — — — — 
Residential mortgage loans – single family— — — — — — — — 
Consumer loans259 — 95 — 194 2 68 2 
Total$20,731 $23 $7,277 $308 $19,291 $125 $5,025 $633 
Schedule of loans restructured as TDRs
The following table presents loans restructured as TDRs during the three and nine months ended September 30, 2020 and 2019:
Three Months Ended
 September 30, 2020September 30, 2019
(Dollars in thousands)Number of
Loans		Pre-Modification
Outstanding
Recorded
Investment		Post-Modification
Outstanding
Recorded
Investment		Number of
loans		Pre-Modification
Outstanding
Recorded
Investment		Post-Modification
Outstanding
Recorded
Investment
Nonperforming
Commercial loans1 $420 $130 — $— $— 
Total Troubled Debt Restructurings(1)
1 $420 $130 — $— $— 
Nine Months Ended
 September 30, 2020September 30, 2019
(Dollars in thousands)Number of
loans		Pre-
Modification
Outstanding
Recorded
Investment		Post-Modification
Outstanding
Recorded
Investment		Number of
loans		Pre-Modification
Outstanding
Recorded
Investment		Post-Modification
Outstanding
Recorded
Investment
Nonperforming
Commercial loans1 $420 $130 — $— $— 
Total Troubled Debt Restructurings(1)
1 $420 $130 — $— $— 
(1)No outstanding loans were restructured during the three and nine months ended September 30, 2019.