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Loans (Tables)
 12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Categories of loans include: 
 
 
December 31,
 
 
2019
 
2018
Commercial loans
 
 

 
 

Commercial and industrial
 
$
96,420

 
$
107,405

Owner-occupied commercial real estate
 
73,392

 
77,569

Investor commercial real estate
 
12,567

 
5,391

Construction
 
60,274

 
39,916

Single tenant lease financing
 
995,879

 
919,440

Public finance
 
687,094

 
706,342

Healthcare finance
 
300,612

 
117,007

Small business lending
 
60,279

 
17,370

Total commercial loans
 
2,286,517

 
1,990,440

Consumer loans
 
 
 
 
Residential mortgage
 
313,849

 
399,898

Home equity
 
24,306

 
28,735

Other consumer
 
295,309

 
279,771

Total consumer loans
 
633,464

 
708,404

Total commercial and consumer loans
 
2,919,981

 
2,698,844

Net deferred loan origination costs and premiums and discounts on purchased loans and other(1)
 
43,566

 
17,384

Total loans
 
2,963,547

 
2,716,228

Allowance for loan losses
 
(21,840
)
 
(17,896
)
Net loans
 
$
2,941,707

 
$
2,698,332



(1) Includes carrying value adjustments of $21.4 million and $5.0 million as of December 31, 2019 and 2018, respectively, related to interest rate swaps associated with public finance loans.
Allowance for Credit Losses on Financing Receivables
 
 
Twelve Months Ended December 31, 2019
 
 
Balance, beginning of period
 
Provision (credit) charged to expense
 
Losses charged off
 
Recoveries
 
Balance, end of period
Allowance for loan losses:
 
 

 
 

 
 

 
 
 
 
Commercial and industrial
 
$
1,384

 
$
1,029

 
$
(921
)
 
$
29

 
$
1,521

Owner-occupied commercial real estate
 
783

 
(222
)
 
—

 
—

 
561

Investor commercial real estate
 
61

 
48

 
—

 
—

 
109

Construction
 
251

 
129

 
—

 
—

 
380

Single tenant lease financing
 
8,827

 
2,348

 
—

 
—

 
11,175

Public finance
 
1,670

 
(90
)
 
—

 
—

 
1,580

Healthcare finance
 
1,264

 
1,983

 
—

 
—

 
3,247

Small business lending
 
203

 
(154
)
 
—

 
5

 
54

Residential mortgage
 
1,079

 
(350
)
 
(76
)
 
4

 
657

Home equity
 
53

 
51

 
(68
)
 
10

 
46

Other consumer
 
2,321

 
1,194

 
(1,292
)
 
287

 
2,510

Total
 
$
17,896

 
$
5,966

 
$
(2,357
)
 
$
335

 
$
21,840



 
 
Twelve Months Ended December 31, 2018
 
 
Balance, beginning of period
 
Provision (credit) charged to expense
 
Losses charged off
 
Recoveries
 
Balance, end of period
Allowance for loan losses:
 
 

 
 

 
 

 
 
 
 
Commercial and industrial
 
$
1,724

 
$
(251
)
 
$
(92
)
 
$
3

 
$
1,384

Owner-occupied commercial real estate
 
762

 
21

 
—

 
—

 
783

Investor commercial real estate
 
85

 
(24
)
 
—

 
—

 
61

Construction
 
423

 
(172
)
 
—

 
—

 
251

Single tenant lease financing
 
7,872

 
955

 
—

 
—

 
8,827

Public finance
 
959

 
711

 
—

 
—

 
1,670

Healthcare finance
 
313

 
951

 
—

 
—

 
1,264

Small business lending
 
55

 
148

 
—

 
—

 
203

Residential mortgage
 
956

 
127

 
(9
)
 
5

 
1,079

Home equity
 
70

 
(33
)
 
—

 
16

 
53

Other consumer
 
1,751

 
1,459

 
(1,176
)
 
287

 
2,321

Total
 
$
14,970

 
$
3,892

 
$
(1,277
)
 
$
311

 
$
17,896

 
 
Twelve Months Ended December 31, 2017
 
 
Balance, beginning of period
 
Provision (credit) charged to expense
 
Losses charged off
 
Recoveries
 
Balance, end of period
Allowance for loan losses:
 
 

 
 

 
 

 
 
 
 
Commercial and industrial
 
$
1,352

 
$
574

 
$
(271
)
 
$
69

 
$
1,724

Owner-occupied commercial real estate
 
582

 
180

 
—

 
—

 
762

Investor commercial real estate
 
168

 
(83
)
 
—

 
—

 
85

Construction
 
544

 
(121
)
 
—

 
—

 
423

Single tenant lease financing
 
6,248

 
1,624

 
—

 
—

 
7,872

Public finance
 
—

 
959

 
—

 
—

 
959

Healthcare finance
 
—

 
313

 
—

 
—

 
313

Small business lending
 
—

 
55

 
—

 
—

 
55

Residential mortgage
 
754

 
314

 
(116
)
 
4

 
956

Home equity
 
102

 
(55
)
 
—

 
23

 
70

Other consumer
 
1,231

 
1,112

 
(895
)
 
303

 
1,751

Total
 
$
10,981

 
$
4,872

 
$
(1,282
)
 
$
399

 
$
14,970


The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2019 and 2018.


 
Loans
 
Allowance for Loan Losses
December 31, 2019
Ending Balance:  
Collectively Evaluated for Impairment
 
Ending Balance:  
Individually Evaluated for Impairment
 
Ending Balance
 
Ending Balance:  
Collectively Evaluated for Impairment
 
Ending Balance:  
Individually Evaluated for Impairment
 
Ending Balance
Commercial and industrial
$
93,520

 
$
2,900

 
$
96,420

 
$
1,412

 
$
109

 
$
1,521

Owner-occupied commercial real estate
71,067

 
2,325

 
73,392

 
561

 
—

 
561

Investor commercial real estate
12,567

 
—

 
12,567

 
109

 
—

 
109

Construction
60,274

 
—

 
60,274

 
380

 
—

 
380

Single tenant lease financing
991,199

 
4,680

 
995,879

 
9,515

 
1,660

 
11,175

Public finance
687,094

 
—

 
687,094

 
1,580

 
—

 
1,580

Healthcare finance
300,612

 
—

 
300,612

 
3,247

 
—

 
3,247

Small business lending
56,941

 
3,338

 
60,279

 
54

 
—

 
54

Residential mortgage
312,714

 
1,135

 
313,849

 
657

 
—

 
657

Home equity
24,306

 
—

 
24,306

 
46

 
—

 
46

Other consumer
295,266

 
43

 
295,309

 
2,510

 
—

 
2,510

Total
$
2,905,560

 
$
14,421

 
$
2,919,981

 
$
20,071

 
$
1,769

 
$
21,840



 
Loans
 
Allowance for Loan Losses
December 31, 2018
Ending Balance:  
Collectively Evaluated for Impairment
 
Ending Balance:  
Individually Evaluated for Impairment
 
Ending Balance
 
Ending Balance:  
Collectively Evaluated for Impairment
 
Ending Balance:  
Individually Evaluated for Impairment
 
Ending Balance
Commercial and industrial
$
101,765

 
$
5,640

 
$
107,405

 
$
1,384

 
$
—

 
$
1,384

Owner-occupied commercial real estate
76,216

 
1,353

 
77,569

 
783

 
—

 
783

Investor commercial real estate
5,391

 
—

 
5,391

 
61

 
—

 
61

Construction
39,916

 
—

 
39,916

 
251

 
—

 
251

Single tenant lease financing
919,440

 
—

 
919,440

 
8,827

 
—

 
8,827

Public finance
706,342

 
—

 
706,342

 
1,670

 
—

 
1,670

Healthcare finance
117,007

 
—

 
117,007

 
1,264

 
—

 
1,264

Small business lending
16,414

 
956

 
17,370

 
203

 
—

 
203

Residential mortgage
399,328

 
570

 
399,898

 
1,079

 
—

 
1,079

Home equity
28,680

 
55

 
28,735

 
53

 
—

 
53

Other consumer
279,714

 
57

 
279,771

 
2,321

 
—

 
2,321

Total
$
2,690,213

 
$
8,631

 
$
2,698,844

 
$
17,896

 
$
—

 
$
17,896
Financing Receivable Credit Quality Indicators
The following tables present the credit risk profile of the Company’s commercial and consumer loan portfolios based on rating category and payment activity as of December 31, 2019 and 2018. 

 
December 31, 2019
 
Pass
 
Special Mention
 
Substandard
 
Total
Commercial and industrial
$
89,818

 
$
3,973

 
$
2,629

 
$
96,420

Owner-occupied commercial real estate
71,068

 
1,727

 
597

 
73,392

Investor commercial real estate
12,567

 
—

 
—

 
12,567

Construction
60,274

 
—

 
—

 
60,274

Single tenant lease financing
983,448

 
7,751

 
4,680

 
995,879

Public finance
687,094

 
—

 
—

 
687,094

Healthcare finance
300,612

 
—

 
—

 
300,612

Small business lending
55,206

 
1,735

 
3,338

 
60,279

Total commercial loans
$
2,260,087

 
$
15,186

 
$
11,244

 
$
2,286,517


 
 
December 31, 2019
 
 
Performing
 
Nonaccrual
 
Total
Residential mortgage
 
$
313,088

 
$
761

 
$
313,849

Home equity
 
24,306

 
—

 
24,306

Other consumer
 
295,276

 
33

 
295,309

Total
 
$
632,670

 
$
794

 
$
633,464


 
December 31, 2018
 
Pass
 
Special Mention
 
Substandard
 
Total
Commercial and industrial
$
100,689

 
$
1,076

 
$
5,640

 
$
107,405

Owner-occupied commercial real estate
73,593

 
2,623

 
1,353

 
77,569

Investor commercial real estate
5,391

 
—

 
—

 
5,391

Construction
39,916

 
—

 
—

 
39,916

Single tenant lease financing
913,984

 
5,456

 
—

 
919,440

Public finance
706,342

 
—

 
—

 
706,342

Healthcare finance
117,007

 
—

 
—

 
117,007

Small business lending
14,648

 
1,766

 
956

 
17,370

Total commercial loans
$
1,971,570

 
$
10,921

 
$
7,949

 
$
1,990,440


 
 
December 31, 2018
 
 
Performing
 
Nonaccrual
 
Total
Residential mortgage
 
$
399,723

 
$
175

 
$
399,898

Home equity
 
28,680

 
55

 
28,735

Other consumer
 
279,729

 
42

 
279,771

Total
 
$
708,132

 
$
272

 
$
708,404
Past Due Financing Receivables
The following tables present the Company’s loan portfolio delinquency analysis as of December 31, 2019 and 2018.

 
 
December 31, 2019
 
 
30-59
Days
Past Due
 
60-89
Days
Past Due
 
90 Days 
or More
Past Due
 
Total 
Past Due
 
Current
 
Total loans
 
Nonaccrual
Loans
 
Total Loans
90 Days or
More Past 
Due and Accruing
Commercial and industrial
 
$
15

 
$
96

 
$
122

 
$
233

 
$
96,187

 
$
96,420

 
$
226

 
$
—

Owner-occupied commercial real estate
 
—

 
—

 
464

 
464

 
72,928

 
73,392

 
464

 
—

Investor commercial real estate
 
—

 
—

 
—

 
—

 
12,567

 
12,567

 
—

 
—

Construction
 
—

 
—

 
—

 
—

 
60,274

 
60,274

 
—

 
—

Single tenant lease financing
 
—

 
4,680

 
—

 
4,680

 
991,199

 
995,879

 
4,680

 
—

Public finance
 
—

 
—

 
—

 
—

 
687,094

 
687,094

 
—

 
—

Healthcare finance
 
—

 
—

 
—

 
—

 
300,612

 
300,612

 
—

 
—

Small business lending
 
54

 
—

 
—

 
54

 
60,225

 
60,279

 
—

 
—

Residential mortgage
 
—

 
—

 
1,177

 
1,177

 
312,672

 
313,849

 
761

 
416

Home equity
 
—

 
—

 
—

 
—

 
24,306

 
24,306

 
—

 
—

Other consumer
 
240

 
107

 
—

 
347

 
294,962

 
295,309

 
33

 
—

Total
 
$
309

 
$
4,883

 
$
1,763

 
$
6,955

 
$
2,913,026

 
$
2,919,981

 
$
6,164

 
$
416

 
 
December 31, 2018
 
 
30-59
Days
Past Due
 
60-89
Days
Past Due
 
90 Days 
or More
Past Due
 
Total 
Past Due
 
Current
 
Total loans
 
Nonaccrual
Loans
 
Total Loans
90 Days or
More Past 
Due
and Accruing
Commercial and industrial
 
$
9

 
$
—

 
$
—

 
$
9

 
$
107,396

 
$
107,405

 
$
195

 
$
—

Owner-occupied commercial real estate
 
92

 
234

 
—

 
326

 
77,243

 
77,569

 
325

 
—

Investor commercial real estate
 
—

 
—

 
—

 
—

 
5,391

 
5,391

 
—

 
—

Construction
 
—

 
—

 
—

 
—

 
39,916

 
39,916

 
—

 
—

Single tenant lease financing
 
—

 
—

 
—

 
—

 
919,440

 
919,440

 
—

 
—

Public finance
 
—

 
—

 
—

 
—

 
706,342

 
706,342

 
—

 
—

Healthcare finance
 
—

 
—

 
—

 
—

 
117,007

 
117,007

 
—

 
—

Small business lending
 
—

 
—

 
—

 
—

 
17,370

 
17,370

 
—

 
—

Residential mortgage
 
—

 
3,118

 
98

 
3,216

 
396,682

 
399,898

 
175

 
97

Home equity
 
—

 
—

 
55

 
55

 
28,680

 
28,735

 
55

 
—

Other consumer
 
235

 
170

 
4

 
409

 
279,362

 
279,771

 
42

 
—

Total
 
$
336

 
$
3,522

 
$
157

 
$
4,015

 
$
2,694,829

 
$
2,698,844

 
$
792

 
$
97
Impaired Financing Receivables
The following tables present the Company’s impaired loans as of December 31, 2019 and 2018.
 
 
December 31, 2019
 
December 31, 2018
 
 
Recorded
Balance
 
Unpaid
Principal
Balance
 
Specific
Allowance
 
Recorded
Balance
 
Unpaid
Principal
Balance
 
Specific
Allowance
Loans without a specific valuation allowance
 
 

 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 
$
2,693

 
$
2,694

 
$
—

 
$
5,640

 
$
5,652

 
$
—

Owner-occupied commercial real estate
 
2,325

 
2,327

 
—

 
1,353

 
1,353

 
—

Small business lending
 
3,338

 
3,338

 
—

 
956

 
956

 
 
Residential mortgage
 
1,135

 
1,209

 
—

 
570

 
570

 
—

Home equity
 
—

 
—

 
—

 
55

 
55

 
—

Other consumer
 
43

 
107

 
—

 
57

 
124

 
—

Total
 
9,534

 
9,675

 
—

 
8,631

 
8,710

 
—

Loans with a specific valuation allowance
 
 

 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 
$
207

 
$
244

 
$
109

 
$
—

 
$
—

 
$
—

Single tenant lease financing
 
4,680

 
4,680

 
1,660

 
—

 
—

 
—

Total
 
4,887

 
4,924

 
1,769

 
—

 
—

 
—

Total impaired loans
 
$
14,421

 
$
14,599

 
$
1,769

 
$
8,631

 
$
8,710

 
$
—


The following table presents average balances and interest income recognized for impaired loans during the twelve months ended December 31, 2019, 2018, and 2017.
 
 
Twelve Months Ended
 
 
December 31, 2019
 
December 31, 2018
 
December 31, 2017
 
 
Average
Balance
 
Interest
Income
 
Average
Balance
 
Interest
Income
 
Average
Balance
 
Interest
Income
Loans without a specific valuation allowance
 
 

 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 
$
3,293

 
$
289

 
$
5,961

 
$
426

 
$
2,942

 
$
146

Owner-occupied commercial real estate
 
3,292

 
170

 
833

 
44

 
3

 
—

Small business lending
 
331

 
94

 
60

 
15

 
—

 
—

Residential mortgage
 
2,265

 
—

 
720

 
—

 
1,546

 
6

Home equity
 
10

 
—

 
61

 
—

 
5

 
—

Other consumer
 
68

 
1

 
108

 
—

 
105

 
4

Total
 
9,259

 
554

 
7,743

 
485

 
4,601

 
156

Loans with a specific valuation allowance
 
 

 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 
1,077

 
—

 
—

 
—

 
35

 
—

Single tenant lease financing
 
1,464

 
—

 
—

 
—

 
—

 
—

Total
 
2,541

 
—

 
—

 
—

 
35

 
—

Total impaired loans
 
$
11,800

 
$
554

 
$
7,743

 
$
485

 
$
4,636

 
$
156