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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 12 Months Ended
Dec. 31, 2020
Receivables [Abstract]  
Components of Loans in Consolidated Balance Sheet
The components of loans in the Consolidated Balance Sheet at December 31, were as follows:
(Dollars in thousands)20202019
Commercial and non-residential real estate$1,141,114 $1,063,828 
Residential240,264 271,604 
Home equity30,828 35,106 
Consumer3,156 3,697 
PCI loans:
Commercial and non-residential real estate21,008 — 
Residential16,943 — 
Consumer1,488 — 
Total loans1,454,801 1,374,235 
Deferred loan origination costs and (fees), net(1,057)306 
Loans receivable$1,453,744 $1,374,541 
Primary Segments of the Loan Portfolio
The following table summarizes the primary segments of the loan portfolio, excluding PCI loans, as of December 31, 2020 and 2019:
(Dollars in thousands)CommercialResidentialHome EquityConsumerTotal
December 31, 2020
     Individually evaluated for impairment$13,334 $1,960 $95 $5 $15,394 
     Collectively evaluated for impairment1,127,780 238,304 30,733 3,151 1,399,968 
Total Loans$1,141,114 $240,264 $30,828 $3,156 $1,415,362 
December 31, 2019
     Individually evaluated for impairment$7,401 $1,953 $95 $34 $9,483 
     Collectively evaluated for impairment1,056,427 269,651 35,011 3,663 1,364,752 
Total Loans$1,063,828 $271,604 $35,106 $3,697 $1,374,235 
Impaired Loans by Class
The following table presents impaired loans by class, excluding PCI loans, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of December 31, 2020 and 2019:
 Impaired Loans with Specific AllowanceImpaired Loans with No Specific AllowanceTotal Impaired Loans
(Dollars in thousands)Recorded InvestmentRelated AllowanceRecorded InvestmentRecorded InvestmentUnpaid Principal Balance
December 31, 2020
Commercial:
Commercial business$3,431 $1,032 $5,653 $9,084 $10,440 
Commercial real estate772 264 944 1,716 1,864 
Acquisition and development— — 2,534 2,534 3,939 
          Total commercial4,203 1,296 9,131 13,334 16,243 
Residential— — 1,960 1,960 2,232 
Home equity— — 95 95 95 
Consumer— — 5 5 5 
          Total impaired loans$4,203 $1,296 $11,191 $15,394 $18,575 
December 31, 2019
Commercial:
Commercial business$2,606 $249 $644 $3,250 $4,308 
Commercial real estate1,786 325 295 2,081 2,171 
Acquisition and development— — 2,070 2,070 3,467 
          Total commercial4,392 574 3,009 7,401 9,946 
Residential— — 1,953 1,953 2,045 
Home equity— — 95 95 100 
Consumer— — 34 34 35 
          Total impaired loans$4,392 $574 $5,091 $9,483 $12,126 
The carrying amount of the PCI loan portfolio is as follows:
(Dollars in thousands)As of December 31, 2020
Commercial$21,008 
Residential16,943 
Consumer1,488 
Outstanding balance$39,439 
Carrying amount, net of allowance$39,355 
Average Recorded Investment in Impaired Loans and Related Interest Income Recognized
December 31, 2020December 31, 2019December 31, 2018
(Dollars in thousands)Average Investment in Impaired LoansInterest Income Recognized on Accrual BasisInterest Income Recognized on Cash BasisAverage Investment in Impaired LoansInterest Income Recognized on Accrual BasisInterest Income Recognized on Cash BasisAverage Investment in Impaired LoansInterest Income Recognized on Accrual BasisInterest Income Recognized on Cash Basis
Commercial:
Commercial business$6,066 $— $— $3,202 $— $— $4,052 $51 $106 
Commercial real estate3,057 97 104 3,220 162 140 6,416 159 94 
Acquisition and development1,207 67 73 2,151 123 131 1,367 106 8 
    Total commercial10,330 164 177 8,573 285 271 11,835 316 208 
Residential2,541 19 19 2,719 16 16 2,569 20 14 
Home equity87 — — 154 2 2 100 2 1 
Consumer7 — — 45 — — 149 — — 
Total$12,965 $183 $196 $11,491 $303 $289 $14,653 $338 $223 
Classes of the Loan Portfolio Summarized by the Aggregate Pass and the Criticized Categories
The following table represents the classes of the loan portfolio, excluding PCI loans, summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of December 31, 2020 and 2019:
(Dollars in thousands)PassSpecial MentionSubstandardDoubtfulTotal
December 31, 2020
Commercial:
Commercial business$496,222 $9,529 $17,045 $1,095 $523,891 
Commercial real estate356,544 32,044 34,001 533 423,122 
Acquisition and development80,771 25,001 4,184 2,170 112,126 
     SBA PPP81,975 — — — 81,975 
          Total commercial1,015,512 66,574 55,230 3,798 1,141,114 
Residential236,250 948 2,896 170 240,264 
Home equity30,277 381 144 26 30,828 
Consumer3,124 32 — — 3,156 
          Total Loans$1,285,163 $67,935 $58,270 $3,994 $1,415,362 
December 31, 2019
Commercial:
Commercial business$511,590 $17,398 $11,894 $— $540,882 
Commercial real estate406,712 3,564 1,494 — 411,770 
Acquisition and development106,428 1,869 2,879 — 111,176 
          Total commercial1,024,730 22,831 16,267 — 1,063,828 
Residential267,367 1,946 2,177 114 271,604 
Home equity34,641 383 82 — 35,106 
Consumer3,613 56 28 — 3,697 
          Total Loans$1,330,351 $25,216 $18,554 $114 $1,374,235 
The following table represents the classes of the PCI loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of December 31, 2020:
(Dollars in thousands)PassSpecial MentionSubstandardDoubtfulTotal
December 31, 2020
Commercial:
     Commercial Business$12,263 $136 $345 $4,860 $17,604 
     Commercial Real Estate982 3 263 21 1,269 
     Acquisition & Development1,900 — — 235 2,135 
          Total Commercial15,145 139 608 5,116 21,008 
Residential15,157 — 1,665 121 16,943 
Consumer1,256 — — 232 1,488 
          Total Loans$31,558 $139 $2,273 $5,469 $39,439 
Classes of the Loan Portfolio Summarized by Aging Categories
The following table presents the classes of the loan portfolio, excluding PCI loans, summarized by aging categories of performing loans and nonaccrual loans as of December 31, 2020 and 2019:
(Dollars in thousands)Current30-59 Days Past Due60-89 Days Past Due90+ Days Past DueTotal Past DueTotal LoansNon-Accrual90+ Days Still Accruing
December 31, 2020
Commercial:
Commercial business$521,799 $1,040 $33 $1,019 $2,092 $523,891 $8,601 $— 
Commercial real estate422,343 34 212 533 779 423,122 944 — 
Acquisition and development109,686 — — 2,440 2,440 112,126 2,534 — 
     SBA PPP81,975 — — — — 81,975 — — 
          Total commercial1,135,803 1,074 245 3,992 5,311 1,141,114 12,079 — 
Residential235,420 2,058 1,969 817 4,844 240,264 1,534 — 
Home equity30,369 289 75 95 459 30,828 95 — 
Consumer3,156 — — — — 3,156 5 — 
          Total Loans$1,404,748 $3,421 $2,289 $4,904 $10,614 $1,415,362 $13,713 $— 
December 31, 2019
Commercial:
Commercial business$537,602 $3,189 $47 $44 $3,280 $540,882 $2,848 $— 
Commercial real estate411,070 522 178 — 700 411,770 295 — 
Acquisition and development110,717 180 — 279 459 111,176 390 — 
          Total commercial1,059,389 3,891 225 323 4,439 1,063,828 3,533 — 
Residential267,515 3,003 549 537 4,089 271,604 1,461 — 
Home equity34,382 545 84 95 724 35,106 95 — 
Consumer3,610 1 58 28 87 3,697 34 — 
          Total Loans$1,364,896 $7,440 $916 $983 $9,339 $1,374,235 $5,123 $— 
The following table presents the classes of the PCI loan portfolio summarized by aging categories of performing loans and non-accrual loans as of December 31, 2020:
(Dollars in thousands)Current30-59 Days Past Due60-89 Days Past Due90+ Days Past DueTotal Past DueTotal LoansNon-Accrual
December 31, 2020
Commercial:
     Commercial Business$16,264 $71 $65 $1,204 $1,340 $17,604 $— 
     Commercial Real Estate1,157 — — 112 112 1,269 — 
     Acquisition & Development2,135 — — — — 2,135 — 
          Total Commercial19,556 71 65 1,316 1,452 21,008 — 
Residential13,714 710 145 2,374 3,229 16,943 — 
Consumer1,245 3 1 239 243 1,488 — 
          Total Loans$34,515 $784 $211 $3,929 $4,924 $39,439 $— 
Allowance Activity
The following tables summarize the activity of primary segments of the ALL, excluding the ALL related to PCI loans, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment for the years ending December 31, 2020, 2019 and 2018:
(Dollars in thousands)CommercialResidentialHome EquityConsumerTotal
ALL balance at December 31, 2019$10,098 $1,272 $327 $78 $11,775 
     Charge-offs(1,932)(224)(23)— (2,179)
     Recoveries22 — 9 3 34 
     Provision15,845 684 (15)(30)16,484 
     Allowance contributed with mortgage combination transaction— (354)— — (354)
ALL balance at December 31, 2020$24,033 $1,378 $298 $51 $25,760 
Individually evaluated for impairment$1,296 $— $— $— $1,296 
Collectively evaluated for impairment$22,737 $1,378 $298 $51 $24,464 

(Dollars in thousands)CommercialResidentialHome EquityConsumerTotal
ALL balance at December 31, 2018$8,605 $1,405 $684 $245 $10,939 
     Charge-offs(998)— — (10)(1,008)
     Recoveries1 1 4 49 55 
     Provision2,490 (134)(361)(206)1,789 
ALL balance at December 31, 2019$10,098 $1,272 $327 $78 $11,775 
Individually evaluated for impairment$574 $— $— $— $574 
Collectively evaluated for impairment$9,524 $1,272 $327 $78 $11,201 
(Dollars in thousands)CommercialResidentialHome EquityConsumerTotal
ALL balance at December 31, 2017$7,804 $1,119 $705 $250 $9,878 
     Charge-offs(1,024)(166)— (290)(1,480)
     Recoveries15 22 59 5 101 
     Provision1,810 430 (80)280 2,440 
ALL balance at December 31, 2018$8,605 $1,405 $684 $245 $10,939 
Individually evaluated for impairment$1,043 $— $— $— $1,043 
Collectively evaluated for impairment$7,562 $1,405 $684 $245 $9,896 
The following tables summarize the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of December 31, 2020 for the PCI loan portfolio:
(Dollars in thousands)ResidentialTotal
ALL balance as of December 31, 2019$— $— 
     Charge-offs(11)(11)
     Provision 95 95 
ALL balance at December 31, 2020$84 $84 
Collectively evaluated for impairment$84 84 
Loans Identified as Troubled Debt Restructuring
The following table presents details related to loans identified as TDRs during the years ended December 31, 2020 and 2019.
New TDRs 1
December 31, 2020December 31, 2019
(Dollars in thousands)Number of ContractsPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded InvestmentNumber of ContractsPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded Investment
Commercial:
Commercial business6 $6,294 $5,326 2 $336 $333 
Commercial real estate2 159 150 — — — 
Acquisition and development— — — — — — 
          Total commercial8 6,453 5,476 2 336 333 
Residential1 87 86 3 246 323 
Home equity— — — — — — 
Consumer— — — — — — 
          Total9 $6,540 $5,562 5 $582 $656 
1 The pre-modification and post-modification balances represent the balances outstanding immediately before and after modification of the loan.
Financing Receivable, Accretiable Yield
Accretable yield, or income expected to be collected, is as follows:
(Dollars in thousands)As of December 31, 2020
Beginning balance$— 
New loans purchased11,746 
Accretion of income(2,945)
Reclassification from non-accretable difference(488)
Ending balance$8,313 
Summary of Loans Acquired
PCI loans purchased during 2020, for which it was probable at acquisition that all contractually required payments would not be collected are as follows:
(Dollars in thousands)
Contractually required payments receivable of loans purchased during the period:
Commercial$36,046 
Residential47,787 
Consumer2,990 
Cash flows expected to be collected at acquisition$86,823 
Fair value of loans acquired at acquisition$50,235 
The following table outlines the contractually required payments receivable, cash flows the Company expects to receive, non-accretable credit adjustments and the accretable yield for all First State loans as of the acquisition date:
(Dollars in thousands)Contractually Required Payments ReceivableNon-Accretable Credit AdjustmentsCash Flows Expected to be CollectedAccretable FMV AdjustmentsCarrying Value of Loans Receivable
PCI loans$86,823 $24,842 $61,981 $11,746 $50,235 
Purchased performing loans12,818 2,561 10,257 1,817 8,440 
Other purchased loans1,978 — 1,978 — 1,978 
Total$101,619 $27,403 $74,216 $13,563 $60,653