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Loans and Credit Quality (Tables)
 6 Months Ended
Jun. 30, 2020
Receivables [Abstract]  
Loan Portfolio Segmented by Risk Class
The following table presents total portfolio loans by portfolio segment and class of financing receivable, based on the Company's asset quality rating ("AQR") criteria:
(In Thousands)
Commercial

Real estate construction one-to-four family

Real estate construction other

Real estate term owner occupied

Real estate term non-owner occupied

Real estate term other

Consumer secured by 1st deeds of trust

Consumer other

Total
June 30, 2020
 

 

 

 

 

 

 

 

 
AQR Pass

$766,043



$36,329



$76,146



$144,310



$301,454



$38,921



$14,183



$23,688



$1,401,074

AQR Special Mention
2,465


1,287


—


3,637


17,178


1,179


177


—


25,923

AQR Substandard
11,606


702


—


6,794


625


1,176


84


112


21,099

AQR Doubtful
46


—


—


—


—


—


—


—


46

AQR Loss
—


—


—


—


—


—


66


—


66

Subtotal

$780,160



$38,318



$76,146



$154,741



$319,257



$41,276



$14,510



$23,800



$1,448,208

Less: Unearned origination fees, net of origination costs

 

 

(15,007
)
        Total loans
 

 

 

 

 

 

 

 


$1,433,201

December 31, 2019
 

 

 

 

 

 

 

 

 
AQR Pass

$394,107



$34,132



$61,808



$129,959



$295,482



$38,771



$15,860



$24,464



$994,583

AQR Special Mention
2,279


3,337


—


3,828


17,478


2,559


179


—


29,660

AQR Substandard
16,304


1,349


—


5,104


—


1,176


159


121


24,213

Subtotal

$412,690



$38,818



$61,808



$138,891



$312,960



$42,506



$16,198



$24,585



$1,048,456

Less: Unearned origination fees, net of origination costs

 

 

(5,085
)
        Total loans
 

 

 

 

 

 

 

 


$1,043,371
Nonaccrual Loans by Segment Nonaccrual loans at the periods indicated are presented below by segment:
(In  Thousands)
30-59 Days
Past Due
 
60-89 Days
Past Due
 
Greater Than
90 Days Past Due
 
Current
 
Total
June 30, 2020
 
 
 
 
 
 
 
 
 
Commercial

$354

 

$—

 

$6,031

 

$1,977

 

$8,362

Real estate construction one-to-four family
—

 
—

 
702

 
—

 
702

Real estate term owner occupied
—

 
60

 
2,245

 
1,642

 
3,947

Real estate term other
—

 
—

 
1,176

 
—

 
1,176

Consumer secured by 1st deeds of trust
—

 
—

 
—

 
66

 
66

Consumer other
—

 
—

 
—

 
112

 
112

Total nonperforming loans
354

 
60

 
10,154

 
3,797

 
14,365

Government guarantees on nonaccrual loans
(73
)
 
—

 
—

 
(1,562
)
 
(1,635
)
Net nonaccrual loans

$281

 

$60

 

$10,154

 

$2,235

 

$12,730

December 31, 2019
 
 
 
 
 
 
 
 
 
Commercial

$270

 

$385

 

$2,862

 

$5,636

 

$9,153

Real estate construction one-to-four family
—

 
—

 
1,349

 
—

 
1,349

Real estate term owner occupied
1,641

 
—

 
623

 
1,225

 
3,489

Real estate term other
—

 
—

 
1,176

 
—

 
1,176

Consumer secured by 1st deeds of trust
—

 
—

 
—

 
68

 
68

Consumer other
26

 
89

 
—

 
6

 
121

Total nonperforming loans
1,937

 
474

 
6,010

 
6,935

 
15,356

Government guarantees on nonaccrual loans
(268
)
 
—

 
—

 
(1,137
)
 
(1,405
)
Net nonaccrual loans

$1,669

 

$474

 

$6,010

 

$5,798

 

$13,951
Past Due Loans and Nonaccrual Loans Past due loans and nonaccrual loans at the periods indicated are presented below by segment:
(In Thousands)
30-59 Days
Past Due
Still
Accruing

60-89 Days
Past Due
Still
Accruing

Greater Than
90 Days
Still
Accruing

Total Past
Due
 
Nonaccrual

Current

Total
June 30, 2020
 

 

 

 
 
 

 

 
Commercial

$250

 

$—

 

$—

 

$250

 

$8,362

 

$771,548

 

$780,160

Real estate construction one-to-four family
—

 
—

 
—

 
—

 
702

 
37,616

 
38,318

Real estate construction other
—

 
—

 
—

 
—

 
—

 
76,146

 
76,146

Real estate term owner occupied
—

 
—

 
—

 
—

 
3,947

 
150,794

 
154,741

Real estate term non-owner occupied
—

 
—

 
—

 
—

 
—

 
319,257

 
319,257

Real estate term other
—

 
—

 
—

 
—

 
1,176

 
40,100

 
41,276

Consumer secured by 1st deed of trust
—

 
553

 
—

 
553

 
66

 
13,891

 
14,510

Consumer other
—

 
58

 
—

 
58

 
112

 
23,630

 
23,800

Subtotal

$250

 

$611

 

$—

 

$861

 

$14,365

 

$1,432,982

 

$1,448,208

Less: Unearned origination fees,  net of origination costs

 

 
 

 


(15,007
)
     Total
 


 


 


 

 
 


 



$1,433,201

December 31, 2019
 

 

 

 
 
 

 

 
Commercial

$270

 

$—

 

$—

 

$270

 

$9,153

 

$403,267

 

$412,690

Real estate construction one-to-four family
—

 
—

 
—

 
—

 
1,349

 
37,469

 
38,818

Real estate construction other
—

 
—

 
—

 
—

 
—

 
61,808

 
61,808

Real estate term owner occupied
338

 
—

 
—

 
338

 
3,489

 
135,064

 
138,891

Real estate term non-owner occupied
—

 
—

 
—

 
—

 
—

 
312,960

 
312,960

Real estate term other
26

 
—

 
—

 
26

 
1,176

 
41,304

 
42,506

Consumer secured by 1st deed of trust
750

 
—

 
—

 
750

 
68

 
15,380

 
16,198

Consumer other
150

 
—

 
—

 
150

 
121

 
24,314

 
24,585

Subtotal

$1,534

 

$—

 

$—

 

$1,534

 

$15,356

 

$1,031,566

 

$1,048,456

Less: Unearned origination fees,  net of origination costs

 

 
 

 


(5,085
)
     Total
 


 


 


 

 
 


 



$1,043,371
Impaired Loans The following table presents information about impaired loans by class as of the periods indicated:
(In Thousands)
Recorded Investment

Unpaid Principal Balance

Related Allowance
June 30, 2020
 

 

 
With no related allowance recorded
 

 

 
Commercial - AQR substandard

$11,193



$12,010



$—

Real estate construction one-to-four family - AQR substandard
702


702


—

Real estate term owner occupied - AQR substandard
6,794


6,794


—

Real estate term non-owner occupied - AQR pass
177


177


—

Real estate term non-owner occupied - AQR substandard
625


625


—

Real estate term other - AQR pass
374


374


—

Real estate term other - AQR substandard
1,177


1,177


—

Consumer secured by 1st deeds of trust - AQR pass
118

 
118

 
—

Consumer secured by 1st deeds of trust - AQR substandard
84


84


—

Consumer secured by 1st deeds of trust - AQR loss
66

 
71

 
—

Consumer other - AQR substandard
85


90


—

          Subtotal

$21,395



$22,222



$—

With an allowance recorded
 

 

 
Commercial - AQR substandard

$250



$250



$31

  Subtotal

$250



$250



$31

Total
 
 
 
 
 
Commercial - AQR substandard

$11,443



$12,260



$31

Real estate construction one-to-four family - AQR substandard
702


702


—

Real estate term owner-occupied - AQR substandard
6,794


6,794


—

Real estate term non-owner occupied - AQR pass
177


177


—

Real estate term non-owner occupied - AQR substandard
625


625


—

Real estate term other - AQR pass
374


374


—

Real estate term other - AQR substandard
1,177


1,177


—

Consumer secured by 1st deeds of trust - AQR pass
118

 
118

 
—

Consumer secured by 1st deeds of trust - AQR substandard
84


84


—

Consumer secured by 1st deeds of trust - AQR loss
66

 
71

 
—

Consumer other - AQR substandard
85


90


—

  Total

$21,645



$22,472



$31

(In Thousands)
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
December 31, 2019
 

 

 
With no related allowance recorded
 

 

 
Commercial - AQR substandard

$15,517



$15,582



$—

Real estate construction one-to-four family -AQR substandard
1,349

 
1,349

 
—

Real estate term owner occupied - AQR substandard
5,104


5,104


—

Real estate term non-owner occupied - AQR pass
178

 
178

 
—

Real estate term other - AQR pass
417


417


—

Real estate term other - AQR substandard
1,176


1,176


—

Consumer secured by 1st deeds of trust - AQR pass
122


122


—

Consumer secured by 1st deeds of trust - AQR substandard
159


163


—

Consumer other - AQR substandard
90


94


—

  Subtotal

$24,112



$24,185



$—

With an allowance recorded
 

 

 
Commercial - AQR substandard

$561



$561



$17

         Subtotal

$561



$561



$17

Total
 
 
 
 
 
Commercial - AQR substandard

$16,078



$16,143



$17

Real estate construction one-to-four family -AQR substandard
1,349

 
1,349

 
—

Real estate term owner occupied - AQR substandard
5,104


5,104


—

Real estate term non-owner occupied - AQR pass
178

 
178

 
—

Real estate term other - AQR pass
417


417


—

Real estate term other - AQR substandard
1,176


1,176


—

Consumer secured by 1st deeds of trust - AQR pass
122


122


—

Consumer secured by 1st deeds of trust - AQR substandard
159


163


—

Consumer other - AQR substandard
90


94


—

  Total

$24,673



$24,746



$17


The following tables summarize our average recorded investment and interest income recognized on impaired loans for the three and six-month periods ended June 30, 2020 and 2019:
Three Months Ended June 30,
2020

2019
(In Thousands)
Average Recorded Investment
Interest Income Recognized
Average Recorded Investment
Interest Income Recognized
With no related allowance recorded







     Commercial - AQR pass

$—



$—



$75



$1

     Commercial - AQR substandard
12,767


65


17,192


95

     Real estate construction one-to-four family - AQR substandard
808

 
—

 
1,958

 
—

     Real estate term owner occupied- AQR substandard
6,707


49


5,877


14

     Real estate term non-owner occupied- AQR pass
177


3


276


5

     Real estate term non-owner occupied- AQR substandard
313


—


—


—

     Real estate term other - AQR pass
386


7


457


8

     Real estate term other - AQR substandard
1,176


—


1,213


—

     Consumer secured by 1st deeds of trust - AQR pass
120


3


127


3

     Consumer secured by 1st deeds of trust - AQR substandard
86


2


309


2

     Consumer secured by 1st deeds of trust - AQR loss
66

 
—

 
—

 
—

     Consumer other - AQR substandard
86


—


95


—

         Subtotal

$22,692



$129



$27,579



$128

With an allowance recorded







     Commercial - AQR substandard

$125



$—



$917



$—

         Subtotal

$125



$—



$917



$—

Total





 

     Commercial - AQR pass

$—



$—



$75

 

$1

     Commercial - AQR substandard
12,892


65


18,109

 
95

     Real estate construction one-to-four family - AQR substandard
808


—


1,958

 
—

     Real estate term owner-occupied - AQR substandard
6,707


49


5,877

 
14

     Real estate term non-owner occupied - AQR pass
177


3


276

 
5

     Real estate term non-owner occupied - AQR substandard
313


—


—

 
—

     Real estate term other - AQR pass
386


7


457

 
8

     Real estate term other - AQR substandard
1,176


—


1,213

 
—

     Consumer secured by 1st deeds of trust - AQR pass
120


3


127

 
3

     Consumer secured by 1st deeds of trust - AQR substandard
86


2


309

 
2

     Consumer secured by 1st deeds of trust - AQR loss
66

 
—

 
—

 
—

     Consumer other - AQR substandard
86


—


95

 
—

         Total Impaired Loans

$22,817



$129



$28,496

 

$128


Six Months Ended June 30,
2020
 
2019
(In Thousands)
Average Recorded Investment
Interest Income Recognized
Average Recorded Investment
Interest Income Recognized
With no related allowance recorded
 
 
 
 
 
 
 
     Commercial - AQR pass

$10,575

 

$95

 

$1,073

 

$35

     Commercial - AQR substandard
—

 
—

 
16,995

 
185

     Real estate construction one-to-four family - AQR substandard
970

 
—

 
2,427

 
—

     Real estate term owner occupied- AQR substandard
6,378

 
78

 
5,895

 
49

     Real estate term non-owner occupied- AQR pass
177

 
7

 
283

 
10

     Real estate term non-owner occupied- AQR substandard
156

 

 
463

 
—

     Real estate term other - AQR pass
396

 
14

 
467

 
16

     Real estate term other - AQR substandard
1,176

 
—

 
897

 
—

     Consumer secured by 1st deeds of trust - AQR pass
121

 
6

 
128

 
6

     Consumer secured by 1st deeds of trust - AQR substandard
87

 
3

 
278

 
4

     Consumer secured by 1st deeds of trust - AQR loss
67

 
—

 
—

 
—

     Consumer other - AQR substandard
88

 
—

 
48

 
—

Subtotal

$20,191

 

$203

 

$28,954

 

$305

With an allowance recorded
 
 
 
 
 
 
 
     Commercial - AQR substandard

$2,586

 

$—

 

$881

 

$—

     Real estate term other - AQR substandard
—

 
—

 
328

 
—

     Consumer secured by 1st deeds of trust - AQR substandard
—

 
—

 
108

 
—

Subtotal

$2,586

 

$—

 

$1,317

 

$—

Total
 
 
 
 
 
 
 
     Commercial - AQR pass

$10,575

 

$95

 

$1,073

 

$35

     Commercial - AQR substandard
2,586

 
—

 
17,876

 
185

     Real estate construction one-to-four family - AQR substandard
970

 
—

 
2,427

 
—

     Real estate term owner-occupied - AQR substandard
6,378

 
78

 
5,895

 
49

     Real estate term non-owner occupied - AQR pass
177

 
7

 
283

 
10

     Real estate term non-owner occupied - AQR substandard
156

 
—

 
463

 
—

     Real estate term other - AQR pass
396

 
14

 
467

 
16

     Real estate term other - AQR substandard
1,176

 
—

 
1,225

 
—

     Consumer secured by 1st deeds of trust - AQR pass
121

 
6

 
128

 
6

     Consumer secured by 1st deeds of trust - AQR substandard
87

 
3

 
386

 
4

     Consumer secured by 1st deeds of trust - AQR loss
67

 
—

 
—

 
—

     Consumer other - AQR substandard
88

 
—

 
48

 
—

Total Impaired Loans

$22,777

 

$203

 

$30,271

 

$305
Schedule of non troubled debt restructuring As of June 30, 2020, the Company has made the following loan modifications related to COVID-19, which are not classified as TDRs:

(Dollars in thousands)
Interest Only
Full Payment Deferral
Total
Portfolio loans

$64,298


$293,224


$357,522

Number of modifications
76

403

479
Restructured Loans
The following table presents the breakout between newly restructured loans that occurred during the six months ended June 30, 2020 and restructured loans that occurred prior to 2020 that are still included in portfolio loans. As discussed above, the CARES Act provided banks an option to elect to not account for certain loan modifications related to COVID-19 as TDRs as long as the borrowers were not more than 30 days past due as of December 31, 2019. The below disclosed restructurings were not related to COVID-19 modifications:
 
Accrual Status
 
Nonaccrual Status
 
Total Modifications
(In Thousands)
 
 
New Troubled Debt Restructurings
 
 
 
 
 
Commercial - AQR substandard

$2,031

 

$—

 

$2,031

Subtotal

$2,031

 

$—

 

$2,031

Existing Troubled Debt Restructurings

$856

 

$7,749

 

$8,605

Total

$2,887

 

$7,749

 

$10,636
Newly Restructured Loans by Concession
The following tables present newly restructured loans that occurred during the six months ended June 30, 2020 and 2019, by concession (terms modified):

 
 
 
June 30, 2020
 
Number of Contracts
 
Rate Modification
 
Term Modification
 
Payment Modification
 
Combination Modification
 
Total Modifications
(In Thousands)
 
 
 
 
 
Pre-Modification Outstanding Recorded Investment:
 
 
 
 
 
 
 
 
 
 
 
Commercial - AQR substandard
1
 

$—

 

$3,249

 

$—

 

$—

 

$3,249

Total
1
 

$—

 

$3,249

 

$—

 

$—

 

$3,249

Post-Modification Outstanding Recorded Investment:
 
 
 
 
 
 
 
 
 
 
 
Commercial - AQR substandard
1
 

$—

 

$2,031

 

$—

 

$—

 

$2,031

Total
1
 

$—

 

$2,031

 

$—

 

$—

 

$2,031


 
 
 
June 30, 2019
 
Number of Contracts
 
Rate Modification
 
Term Modification
 
Payment Modification
 
Combination Modification
 
Total Modifications
(In Thousands)
 
 
 
 
 
Pre-Modification Outstanding Recorded Investment:
 
 
 
 
 
 
 
 
 
 
 
Commercial - AQR substandard
5
 

$—

 

$—

 

$509

 

$1,350

 

$1,859

Real estate term owner occupied- AQR substandard
1
 
—

 
—

 
192

 
—

 
192

Total
6
 

$—

 

$—

 

$701

 

$1,350

 

$2,051

Post-Modification Outstanding Recorded Investment:
 
 
 
 
 
 
 
 
 
 
 
Commercial - AQR substandard
5
 

$—

 

$—

 

$433

 

$1,346

 

$1,779

Real estate term owner occupied- AQR substandard
1
 
—

 
—

 
189

 
—

 
189

Total
6
 

$—

 

$—

 

$622

 

$1,346

 

$1,968