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Loans (Tables)
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Loan balances as of September 30, 2020 and December 31, 2019 are summarized in the table below. Categories of loans include:

(in thousands)September 30, 2020December 31, 2019
Commercial loans  
Commercial and industrial$77,116 $96,420 
Owner-occupied commercial real estate(1)
89,095 86,726 
Investor commercial real estate13,084 12,567 
Construction92,154 60,274 
Single tenant lease financing960,505 995,879 
Public finance625,638 687,094 
Healthcare finance461,740 300,612 
Small business lending(1)
123,168 46,945 
Total commercial loans2,442,500 2,286,517 
Consumer loans
Residential mortgage203,041 313,849 
Home equity22,169 24,306 
Other consumer282,450 295,309 
Total consumer loans507,660 633,464 
Total commercial and consumer loans2,950,160 2,919,981 
Net deferred loan origination fees/costs and premiums/discounts on purchased loans and other(2)
62,754 43,566 
Total loans3,012,914 2,963,547 
Allowance for loan losses(26,917)(21,840)
Net loans$2,985,997 $2,941,707 

(1) As of September 30, 2020, $12.0 million of commercial real estate loan balances were reclassified from small business lending to owner-occupied commercial real estate.
(2) Includes carrying value adjustments of $44.3 million related to terminated interest rate swaps associated with public finance loans as of September 30, 2020 and $21.4 million related to interest rate swaps associated with public finance loans as of December 31, 2019.
Allowance for Credit Losses on Financing Receivables
The following tables present changes in the balance of the ALLL during the three and nine months ended September 30, 2020 and 2019. 

(in thousands)Three Months Ended September 30, 2020
Allowance for loan losses:Balance, Beginning of PeriodProvision (Credit) Charged to ExpenseLosses
Charged Off		RecoveriesBalance,
End of Period
Commercial and industrial$1,477 $(227)$(99)$— $1,151 
Owner-occupied commercial real estate846 167 — — 1,013 
Investor commercial real estate130 — — — 130 
Construction721 155 — — 876 
Single tenant lease financing11,318 717 — — 12,035 
Public finance1,542 191 — — 1,733 
Healthcare finance4,762 1,232 — 87 6,081 
Small business lending251 230 — 3 484 
Residential mortgage539 26 — — 565 
Home equity51 (1)— 3 53 
Other consumer2,828 19 (142)91 2,796 
Total$24,465 $2,509 $(241)$184 $26,917 



Nine Months Ended September 30, 2020
Allowance for loan losses:Balance, Beginning of PeriodProvision (Credit) Charged to ExpenseLosses
Charged Off		RecoveriesBalance,
End of Period
Commercial and industrial$1,521 $(22)$(353)$5 $1,151 
Owner-occupied commercial real estate561 452 — — 1,013 
Investor commercial real estate109 21 — — 130 
Construction380 496 — — 876 
Single tenant lease financing11,175 860 — — 12,035 
Public finance1,580 153 — — 1,733 
Healthcare finance3,247 3,490 (743)87 6,081 
Small business lending54 413 — 17 484 
Residential mortgage657 (81)(15)4 565 
Home equity46 (1)— 8 53 
Other consumer2,510 680 (644)250 2,796 
Total$21,840 $6,461 $(1,755)$371 $26,917 
(in thousands)Three Months Ended September 30, 2019
Allowance for loan losses:Balance, Beginning of PeriodProvision (Credit) Charged to ExpenseLosses
Charged Off		RecoveriesBalance,
End of Period
Commercial and industrial$1,795 $519 $(800)$— $1,514 
Owner-occupied commercial real estate624 26 — — 650 
Investor commercial real estate169 (65)— — 104 
Construction302 39 — — 341 
Single tenant lease financing9,661 1,633 — — 11,294 
Public finance1,763 (198)— — 1,565 
Healthcare finance2,293 499 — — 2,792 
Small business lending129 (3)— — 126 
Residential mortgage662 10 (1)1 672 
Home equity48 (5)— 2 45 
Other consumer2,530 369 (381)62 2,580 
Total$19,976 $2,824 $(1,182)$65 $21,683 


Nine Months Ended September 30, 2019
Allowance for loan losses:Balance, Beginning of PeriodProvision (Credit) Charged to ExpenseLosses
Charged Off		RecoveriesBalance,
End of Period
Commercial and industrial$1,384 $1,042 $(912)$— $1,514 
Owner-occupied commercial real estate891 (241)— — 650 
Investor commercial real estate61 43 — — 104 
Construction251 90 — — 341 
Single tenant lease financing8,827 2,467 — — 11,294 
Public finance1,670 (105)— — 1,565 
Healthcare finance1,264 1,528 — — 2,792 
Small business lending95 31 — — 126 
Residential mortgage1,079 (409)(1)3 672 
Home equity53 (16)— 8 45 
Other consumer2,321 1,068 (1,035)226 2,580 
Total$17,896 $5,498 $(1,948)$237 $21,683 
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 September 30, 2020 and December 31, 2019. 
(in thousands)LoansAllowance for Loan Losses
September 30, 2020Ending Balance:  
Collectively Evaluated for Impairment		Ending Balance:  
Individually Evaluated for Impairment		Ending BalanceEnding Balance:  
Collectively Evaluated for Impairment		Ending Balance:  
Individually Evaluated for Impairment		Ending Balance
Commercial and industrial$76,481 $635 $77,116 $1,101 $50 $1,151 
Owner-occupied commercial real estate85,848 3,247 89,095 1,013 — 1,013 
Investor commercial real estate13,084 — 13,084 130 — 130 
Construction92,154 — 92,154 876 — 876 
Single tenant lease financing953,140 7,365 960,505 10,008 2,027 12,035 
Public finance625,638 — 625,638 1,733 — 1,733 
Healthcare finance460,706 1,034 461,740 6,081 — 6,081 
Small business lending123,168 — 123,168 484 — 484 
Residential mortgage201,591 1,450 203,041 565 — 565 
Home equity22,169 — 22,169 53 — 53 
Other consumer282,412 38 282,450 2,796 — 2,796 
Total$2,936,391 $13,769 $2,950,160 $24,840 $2,077 $26,917 



(in thousands)LoansAllowance for Loan Losses
December 31, 2019Ending Balance:  
Collectively Evaluated for Impairment		Ending Balance:  
Individually Evaluated for Impairment		Ending BalanceEnding 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 estate81,063 5,663 86,726 561 — 561 
Investor commercial real estate12,567 — 12,567 109 — 109 
Construction60,274 — 60,274 380 — 380 
Single tenant lease financing991,199 4,680 995,879 9,515 1,660 11,175 
Public finance687,094 — 687,094 1,580 — 1,580 
Healthcare finance300,612 — 300,612 3,247 — 3,247 
Small business lending46,945 — 46,945 54 — 54 
Residential mortgage312,714 1,135 313,849 657 — 657 
Home equity24,306 — 24,306 46 — 46 
Other consumer295,266 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 September 30, 2020 and December 31, 2019. 
September 30, 2020
(in thousands)PassSpecial MentionSubstandardTotal
Commercial and industrial$74,760 $1,721 $635 $77,116 
Owner-occupied commercial real estate80,463 5,385 3,247 89,095 
Investor commercial real estate13,084 — — 13,084 
Construction92,154 — — 92,154 
Single tenant lease financing947,050 6,090 7,365 960,505 
Public finance625,638 — — 625,638 
Healthcare finance460,706 — 1,034 461,740 
Small business lending123,168 — — 123,168 
Total commercial loans$2,417,023 $13,196 $12,281 $2,442,500 

September 30, 2020
(in thousands)PerformingNonaccrualTotal
Residential mortgage$201,956 $1,085 $203,041 
Home equity22,169 — 22,169 
Other consumer282,416 34 282,450 
Total consumer loans$506,541 $1,119 $507,660 

December 31, 2019
(in thousands)PassSpecial MentionSubstandardTotal
Commercial and industrial$89,818 $3,973 $2,629 $96,420 
Owner-occupied commercial real estate79,329 3,462 3,935 86,726 
Investor commercial real estate12,567 — — 12,567 
Construction60,274 — — 60,274 
Single tenant lease financing983,448 7,751 4,680 995,879 
Public finance687,094 — — 687,094 
Healthcare finance300,612 — — 300,612 
Small business lending46,945 — — 46,945 
Total commercial loans$2,260,087 $15,186 $11,244 $2,286,517 
December 31, 2019
(in thousands)PerformingNonaccrualTotal
Residential mortgage$313,088 $761 $313,849 
Home equity24,306 — 24,306 
Other consumer295,276 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 September 30, 2020 and December 31, 2019. 

September 30, 2020
(in thousands)30-59
Days
Past Due		60-89
Days
Past Due		90 Days 
or More
Past Due		Total 
Past Due		CurrentTotal
Loans		Non-
accrual
Loans		Total Loans
90 Days or
More Past
Due and
Accruing
Commercial and industrial$— $— $117 $117 $76,999 $77,116 $117 $— 
Owner-occupied commercial real estate— — 1,390 1,390 87,705 89,095 1,390 — 
Investor commercial real estate— — — — 13,084 13,084 — — 
Construction— — — — 92,154 92,154 — — 
Single tenant lease financing— — 4,680 4,680 955,825 960,505 7,148 — 
Public finance— — — — 625,638 625,638 — — 
Healthcare finance— — — — 461,740 461,740 — — 
Small business lending— — — — 123,168 123,168 — — 
Residential mortgage— — 157 157 202,884 203,041 1,085 — 
Home equity46 — — 46 22,123 22,169 — — 
Other consumer126 33 — 159 282,291 282,450 34 — 
Total$172 $33 $6,344 $6,549 $2,943,611 $2,950,160 $9,774 $— 

December 31, 2019
(in thousands)30-59
Days
Past Due		60-89
Days
Past Due		90 Days 
or More
Past Due		Total 
Past Due		CurrentTotal
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 86,262 86,726 464 — 
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 lending54 — 54 46,891 46,945 — — 
Residential mortgage— — 1,177 1,177 312,672 313,849 761 416 
Home equity— — — — 24,306 24,306 — — 
Other consumer240 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 September 30, 2020 and December 31, 2019. 
 September 30, 2020December 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$517 $517 $— $2,693 $2,694 $— 
Owner-occupied commercial real estate3,246 3,250 — 5,663 5,665 — 
Single tenant lease financing217 217 — — — — 
Healthcare finance1,034 1,034 — — — — 
Residential mortgage1,450 1,543 — 1,135 1,209 — 
Other consumer39 105 — 43 107 — 
Total6,503 6,666 — 9,534 9,675 — 
Loans with a specific valuation allowance      
Commercial and industrial118 140 50 207 244 109 
Single tenant lease financing7,148 7,166 2,027 4,680 4,680 1,660 
Total7,266 7,306 2,077 4,887 4,924 1,769 
Total impaired loans$13,769 $13,972 $2,077 $14,421 $14,599 $1,769 
 
The table below presents average balances and interest income recognized for impaired loans during the three and nine months ended September 30, 2020 and 2019.
Three Months EndedNine Months Ended
September 30, 2020September 30, 2019September 30, 2020September 30, 2019
(in thousands)Average
Balance		Interest
Income		Average
Balance		Interest
Income		Average
Balance		Interest
Income		Average
Balance		Interest
Income
Loans without a specific valuation allowance        
Commercial and industrial$971 $18 $4,433 $70 $1,210 $54 $4,395 $237 
Owner-occupied commercial real estate3,586 29 4,803 52 4,244 60 3,244 145 
Healthcare finance692 8 231 8 — — — — 
Residential mortgage1,233 — 2,714 — 1,286 — 2,768 — 
Home equity— — — — — — 14 — 
Other consumer68 — 66 — 63 — 75 — 
Total6,550 55 12,016 122 7,034 122 10,496 382 
Loans with a specific valuation allowance        
Commercial and industrial182 18 1,032 — 196 18 462 — 
Single tenant lease financing5,978 4 1,173 — 5,113 4 391 — 
Total6,160 51 2,205 — 5,309 51 853 — 
Total impaired loans$12,710 $106 $14,221 $122 $12,343 $173 $11,349 $382 
Schedule Of Loan Modification
In accordance with this guidance, the Company offered modifications to borrowers who were both impacted by COVID-19 and current on all principal and interest payments. The table below presents loan deferrals by loan category as of June 30, 2020 and September 30, 2020, respectively.


(in thousands)June 30, 2020
Deferrals Balance		September 30, 2020
Deferrals Balance		September 30, 2020
Number of Deferrals
Commercial loans  
Commercial and industrial$2,312 $722 5
Owner-occupied commercial real estate25,254 6,235 4
Investor commercial real estate411 — —
Construction— — —
Single tenant lease financing275,129 8,281 4
Public finance— — —
Healthcare finance79,179 2,275 3
Small business lending1,823 2,790 10
Total commercial loans384,108 20,303 26
Consumer loans
Residential mortgage4,719 2,329 5
Home equity398 — —
Other consumer3,205 632 21
Total consumer loans8,322 2,961 26
Total commercial and consumer loans$392,430 $23,264 52