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Loans (Tables)
 3 Months Ended
Mar. 31, 2020
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Loan balances as of March 31, 2020 and December 31, 2019 are summarized in the table below.
 
Categories of loans include:
(in thousands)
 
March 31, 2020
 
December 31, 2019
Commercial loans
 
 

 
 

Commercial and industrial
 
$
95,227

 
$
96,420

Owner-occupied commercial real estate
 
74,737

 
73,392

Investor commercial real estate
 
13,421

 
12,567

Construction
 
64,581

 
60,274

Single tenant lease financing
 
972,275

 
995,879

Public finance
 
627,678

 
687,094

Healthcare finance
 
372,266

 
300,612

Small business lending
 
67,275

 
60,279

Total commercial loans
 
2,287,460

 
2,286,517

Consumer loans
 
 
 
 
Residential mortgage
 
218,730

 
313,849

Home equity
 
23,855

 
24,306

Other consumer
 
296,605

 
295,309

Total consumer loans
 
539,190

 
633,464

Total commercial and consumer loans
 
2,826,650

 
2,919,981

Net deferred loan origination costs and premiums and discounts on purchased loans and other(1)
 
65,443

 
43,566

Total loans
 
2,892,093

 
2,963,547

Allowance for loan losses
 
(22,857
)
 
(21,840
)
Net loans
 
$
2,869,236

 
$
2,941,707



(1) Includes carrying value adjustments of $44.6 million and $21.4 million as of March 31, 2020 and December 31, 2019, respectively, related to interest rate swaps associated with public finance loans. 
Allowance for Credit Losses on Financing Receivables
The following tables present changes in the balance of the ALLL during the three months ended March 31, 2020 and 2019. 

(in thousands)
Three Months Ended March 31, 2020
Allowance for loan losses:
Balance, Beginning of Period
 
Provision (Credit) Charged to Expense
 
Losses
Charged Off
 
Recoveries
 
Balance,
End of Period
Commercial and industrial
$
1,521

 
$
346

 
$
(197
)
 
$
—

 
$
1,670

Owner-occupied commercial real estate
561

 
84

 
—

 
—

 
645

Investor commercial real estate
109

 
19

 
—

 
—

 
128

Construction
380

 
80

 
—

 
—

 
460

Single tenant lease financing
11,175

 
(420
)
 
—

 
—

 
10,755

Public finance
1,580

 
(97
)
 
—

 
—

 
1,483

Healthcare finance
3,247

 
1,071

 
—

 
—

 
4,318

Small business lending
54

 
203

 
—

 
8

 
265

Residential mortgage
657

 
(143
)
 
(15
)
 
1

 
500

Home equity
46

 
5

 
—

 
2

 
53

Other consumer
2,510

 
313

 
(286
)
 
43

 
2,580

Total
$
21,840

 
$
1,461

 
$
(498
)
 
$
54

 
$
22,857



(in thousands)
Three Months Ended March 31, 2019
Allowance for loan losses:
Balance, Beginning of Period
 
Provision (Credit) Charged to Expense
 
Losses
Charged Off
 
Recoveries
 
Balance,
End of Period
Commercial and industrial
$
1,384

 
$
79

 
$
(112
)
 
$
—

 
$
1,351

Owner-occupied commercial real estate
783

 
(38
)
 
—

 
—

 
745

Investor commercial real estate
61

 
42

 
—

 
—

 
103

Construction
251

 
16

 
—

 
—

 
267

Single tenant lease financing
8,827

 
541

 
—

 
—

 
9,368

Public finance
1,670

 
(20
)
 
—

 
—

 
1,650

Healthcare finance
1,264

 
467

 
—

 
—

 
1,731

Small business lending
203

 
(8
)
 
—

 
—

 
195

Residential mortgage
1,079

 
(36
)
 
—

 
1

 
1,044

Home equity
53

 
(6
)
 
—

 
2

 
49

Other consumer
2,321

 
248

 
(317
)
 
86

 
2,338

Total
$
17,896

 
$
1,285

 
$
(429
)
 
$
89

 
$
18,841
Allowance For Credit Losses On Financing Receivables Portfolio Segment
The following tables present the recorded investment in loans based on portfolio segment and impairment method as of March 31, 2020 and December 31, 2019. 
(in thousands)
Loans
 
Allowance for Loan Losses
March 31, 2020
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
$
94,329

 
$
898

 
$
95,227

 
$
1,561

 
$
109

 
$
1,670

Owner-occupied commercial real estate
74,142

 
595

 
74,737

 
645

 
—

 
645

Investor commercial real estate
13,421

 
—

 
13,421

 
128

 
—

 
128

Construction
64,581

 
—

 
64,581

 
460

 
—

 
460

Single tenant lease financing
967,595

 
4,680

 
972,275

 
9,095

 
1,660

 
10,755

Public finance
627,678

 
—

 
627,678

 
1,483

 
—

 
1,483

Healthcare finance
372,266

 
—

 
372,266

 
4,318

 
—

 
4,318

Small business lending
63,948

 
3,327

 
67,275

 
265

 
 
 
265

Residential mortgage
217,370

 
1,360

 
218,730

 
500

 
—

 
500

Home equity
23,855

 
—

 
23,855

 
53

 
—

 
53

Other consumer
296,557

 
48

 
296,605

 
2,580

 
—

 
2,580

Total
$
2,815,742

 
$
10,908

 
$
2,826,650

 
$
21,088

 
$
1,769

 
$
22,857

(in thousands)
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
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 March 31, 2020 and December 31, 2019. 
 
March 31, 2020
(in thousands)
Pass
 
Special Mention
 
Substandard
 
Total
Commercial and industrial
$
91,028

 
$
3,301

 
$
898

 
$
95,227

Owner-occupied commercial real estate
74,142

 
—

 
595

 
74,737

Investor commercial real estate
13,421

 
—

 
—

 
13,421

Construction
64,581

 
—

 
—

 
64,581

Single tenant lease financing
959,161

 
8,434

 
4,680

 
972,275

Public finance
627,678

 
—

 
—

 
627,678

Healthcare finance
371,203

 
1,063

 
—

 
372,266

Small business lending
62,226

 
1,722

 
3,327

 
67,275

Total commercial loans
$
2,263,440

 
$
14,520

 
$
9,500

 
$
2,287,460

 
March 31, 2020
(in thousands)
Performing
 
Nonaccrual
 
Total
Residential mortgage
$
217,739

 
$
991

 
$
218,730

Home equity
23,855

 
—

 
23,855

Other consumer
296,566

 
39

 
296,605

Total consumer loans
$
538,160

 
$
1,030

 
$
539,190

 
December 31, 2019
(in thousands)
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
(in thousands)
Performing
 
Nonaccrual
 
Total
Residential mortgage
$
313,088

 
$
761

 
$
313,849

Home equity
24,306

 
—

 
24,306

Other consumer
295,276

 
33

 
295,309

Total consumer loans
$
632,670

 
$
794

 
$
633,464
Past Due Financing Receivables
The following tables present the Company’s loan portfolio delinquency analysis as of March 31, 2020 and December 31, 2019. 

 
 
March 31, 2020
(in thousands)
 
30-59
Days
Past Due
 
60-89
Days
Past Due
 
90 Days 
or More
Past Due
 
Total 
Past Due
 
Current
 
Total
Loans
 
Non-
accrual
Loans
 
Total Loans
90 Days or
More Past
Due and
Accruing
Commercial and industrial
 
$
—

 
$
—

 
$
285

 
$
285

 
$
94,942

 
$
95,227

 
$
218

 
$
73

Owner-occupied commercial real estate
 
—

 
—

 
464

 
464

 
74,273

 
74,737

 
464

 
—

Investor commercial real estate
 
—

 
—

 
—

 
—

 
13,421

 
13,421

 
—

 
—

Construction
 
—

 
—

 
—

 
—

 
64,581

 
64,581

 
—

 
—

Single tenant lease financing
 
—

 
—

 
4,680

 
4,680

 
967,595

 
972,275

 
4,680

 
—

Public finance
 
—

 
—

 
—

 
—

 
627,678

 
627,678

 
—

 
—

Healthcare finance
 
—

 
—

 
—

 
—

 
372,266

 
372,266

 
—

 
—

Small business lending
 
676

 
43

 
926

 
1,645

 
65,630

 
67,275

 
926

 
—

Residential mortgage
 
870

 
—

 
1,042

 
1,912

 
216,818

 
218,730

 
991

 
51

Home equity
 
—

 
—

 
—

 
—

 
23,855

 
23,855

 
—

 
—

Other consumer
 
95

 
149

 
1

 
245

 
296,360

 
296,605

 
39

 
1

Total
 
$
1,641

 
$
192

 
$
7,398

 
$
9,231

 
$
2,817,419

 
$
2,826,650

 
$
7,318

 
$
125

 
 
December 31, 2019
(in thousands)
 
30-59
Days
Past Due
 
60-89
Days
Past Due
 
90 Days 
or More
Past Due
 
Total 
Past Due
 
Current
 
Total
Loans
 
Non-
accrual
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
Impaired Financing Receivables
The following table presents the Company’s impaired loans as of March 31, 2020 and December 31, 2019. 
 
 
March 31, 2020
 
December 31, 2019
(in thousands)
 
Recorded
Balance
 
Unpaid
Principal
Balance
 
Specific
Allowance
 
Recorded
Balance
 
Unpaid
Principal
Balance
 
Specific
Allowance
Loans without a specific valuation allowance
 
 

 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 
$
695

 
$
697

 
$
—

 
$
2,693

 
$
2,694

 
$
—

Owner-occupied commercial real estate
 
595

 
598

 
—

 
2,325

 
2,327

 
—

Small business lending
 
3,327

 
3,327

 
—

 
3,338

 
3,338

 
—

Residential mortgage
 
1,360

 
1,450

 
—

 
1,135

 
1,209

 
—

Other consumer
 
48

 
116

 
—

 
43

 
107

 
—

Total
 
6,025

 
6,188

 
—

 
9,534

 
9,675

 
—

Loans with a specific valuation allowance
 
 

 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 
203

 
240

 
109

 
207

 
244

 
109

Single tenant lease financing
 
4,680

 
4,680

 
1,660

 
4,680

 
4,680

 
1,660

Total
 
4,883

 
4,920

 
1,769

 
4,887

 
4,924

 
1,769

Total impaired loans
 
$
10,908

 
$
11,108

 
$
1,769

 
$
14,421

 
$
14,599

 
$
1,769

 
The table below presents average balances and interest income recognized for impaired loans during the three months ended March 31, 2020 and 2019.
 
 
Three Months Ended
 
 
March 31, 2020
 
March 31, 2019
(in thousands)
 
Average
Balance
 
Interest
Income
 
Average
Balance
 
Interest
Income
Loans without a specific valuation allowance
 
 

 
 

 
 

 
 

Commercial and industrial
 
$
2,066

 
$
18

 
$
4,699

 
$
81

Owner-occupied commercial real estate
 
1,890

 
2

 
1,253

 
13

Small business lending
 
3,332

 
—

 
952

 
14

Residential mortgage
 
1,274

 
—

 
2,054

 
—

Home equity
 
—

 
—

 
41

 
—

Other consumer
 
45

 
—

 
76

 
—

Total
 
8,607

 
20

 
9,075

 
108

Loans with a specific valuation allowance
 
 

 
 

 
 

 
 

Commercial and industrial
 
204

 
—

 
—

 
—

Single tenant lease financing
 
4,680

 
—

 
—

 
—

Total
 
4,884

 
—

 
—

 
—

Total impaired loans
 
$
13,491

 
$
20

 
$
9,075

 
$
108