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Loans and allowance for credit losses (Tables)
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Loans Outstanding by Major Lending Classification
Loans outstanding at September 30, 2020 and December 31, 2019, by class of financing receivable are as follows:
 September 30,December 31,
 2020 2019 
Commercial and industrial (1)
$1,417,671 $1,034,036 
Construction1,190,878 551,101 
Residential real estate:
1-to-4 family mortgage1,140,611 710,454 
Residential line of credit420,318 221,530 
Multi-family mortgage165,937 69,429 
Commercial real estate:
Owner occupied924,987 630,270 
Non-owner occupied1,644,400 920,744 
Consumer and other308,736 272,078 
Gross loans7,213,538 4,409,642 
Less: Allowance for credit losses(183,973)(31,139)
Net loans$7,029,565 $4,378,503 
(1)Includes $310,719 of loans originated as part of the PPP at September 30, 2020, established by the CARES Act, in response to the COVID-19 pandemic. The PPP is administered by the SBA; loans originated as part of the PPP may be forgiven by the SBA under a set of defined rules. An allowance for credit losses of $49 at September 30, 2020, has been calculated for these loans. PPP loans are federally guaranteed as part of the CARES Act, provided PPP loan recipients receive loan forgiveness under the SBA regulations. As such, there is minimal credit risk associated with these loans.
Allowance for Loan Losses by Portfolio Segment and Related Investment in Loans Net of Unearned Interest
The following provides the changes in the allowance for credit losses by class of financing receivable for the three and nine months ended September 30, 2020 and 2019:
 Commercial
and industrial 		Construction1-to-4
family
residential
mortgage 		Residential
line of credit 		Multi-family
residential
mortgage 		Commercial
real estate
owner
occupied 		Commercial
real estate
non-owner
occupied 		Consumer
and other 		Total
Three Months Ended September 30, 2020
Beginning balance -
June 30, 2020
$8,878 $35,599 $12,463 $6,811 $4,499 $7,420 $30,444 $7,015 $113,129 
Provision for credit losses(1,520)22,383 4,194 4,053 1,908 (1,276)12,364 3,728 45,834 
Recoveries of loans
previously charged-off
757 51 116 22 — 51 — 175 1,172 
Loans charged off(249)— (8)— — (95)(166)(475)(993)
Initial allowance on loans
purchased with
deteriorated credit quality		743 5,596 1,533 569 784 605 14,998 3 24,831 
Ending balance -
September 30, 2020
$8,609 $63,629 $18,298 $11,455 $7,191 $6,705 $57,640 $10,446 $183,973 
Nine Months Ended September 30, 2020
Beginning balance -
December 31, 2019
$4,805 $10,194 $3,112 $752 $544 $4,109 $4,621 $3,002 $31,139 
Impact of adopting ASC
326 on non-purchased
credit deteriorated loans
5,300 1,533 7,920 3,461 340 1,879 6,822 3,633 30,888 
Impact of adopting ASC
326 on purchased credit
deteriorated loans
82 150 421 (3)— 162 184 (438)558 
Provision for credit losses(2,354)45,962 5,412 6,633 5,523 132 31,282 5,247 97,837 
Recoveries of loans
previously charged-off
1,652 202 166 61 — 68 — 471 2,620 
Loans charged off(1,630)(18)(373)(21)— (304)(711)(1,512)(4,569)
Initial allowance on loans
purchased with
deteriorated credit quality
754 5,606 1,640 572 784 659 15,442 43 25,500 
Ending balance -
September 30, 2020
$8,609 $63,629 $18,298 $11,455 $7,191 $6,705 $57,640 $10,446 $183,973 
 
 Commercial
and industrial 		Construction1-to-4
family
residential
mortgage 		Residential
line of credit 		Multi-family
residential
mortgage 		Commercial
real estate
owner
occupied 		Commercial
real estate
non-owner
occupied 		Consumer
and other 		Total
Three Months Ended September 30, 2019
Beginning balance -
June 30, 2019
$4,923 $9,655 $3,288 $755 $617 $3,512 $4,478 $2,910 $30,138 
Provision for loan losses234 186 18 67 (43)194 461 714 1,831 
Recoveries of loans
previously charged-off
16 1 25 75 — 3 — 92 212 
Loans charged off(3)— — (170)— — (12)(532)(717)
Ending balance -
September 30, 2019
$5,170 $9,842 $3,331 $727 $574 $3,709 $4,927 $3,184 $31,464 
Nine Months Ended September 30, 2019 
Beginning balance -
December 31, 2018
$5,348 $9,729 $3,428 $811 $566 $3,132 $4,149 $1,769 $28,932 
Provision for loan losses17 105 (77)100 8 482 790 2,678 4,103 
Recoveries of loans
previously charged-off
66 8 62 121 — 95 — 435 787 
Loans charged off(261)— (82)(305)— — (12)(1,698)(2,358)
Ending balance -
September 30, 2019
$5,170 $9,842 $3,331 $727 $574 $3,709 $4,927 $3,184 $31,464 
Allocation of Allowance for Loan Losses by Loan Category Broken Out Between Loans Individually and Collectively Evaluated for Impairment
The following table provides the amount of the allowance for credit losses by class of financing receivable for loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality as of December 31, 2019:
 December 31, 2019
 Commercial
and industrial 		Construction1-to-4
family
residential
mortgage		Residential
line of credit 		Multi-family
residential
mortgage 		Commercial
real estate
owner
occupied 		Commercial
real estate
non-owner occupied 		Consumer
and other 		Total
Amount of allowance allocated to:
         
Individually evaluated for impairment$241 $— $8 $9 $— $238 $399 $— $895 
Collectively evaluated for
impairment
4,457 10,192 2,940 743 544 3,853 3,909 1,933 28,571 
Acquired with deteriorated
credit quality
107 2 164 — — 18 313 1,069 1,673 
Ending balance -
December 31, 2019
$4,805 $10,194 $3,112 $752 $544 $4,109 $4,621 $3,002 $31,139 
Amount of Loans by Loan Category Broken Between Loans Individually and Collectively Evaluated for Impairment
The following table provides the amount of loans by class of financing receivable for loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality as of December 31, 2019:
 
 December 31, 2019
 Commercial
and industrial		Construction1-to-4
family
residential
mortgage 		Residential
line of credit 		Multi-family
residential
mortgage		Commercial
real estate
owner
occupied		Commercial
real estate
non-owner
occupied 		Consumer
and other		Total
Loans, net of unearned
income
         
Individually evaluated
for impairment
$9,026 $2,061 $1,347 $579 $— $2,993 $7,755 $49 $23,810 
Collectively evaluated
for impairment
1,023,326 546,156 689,769 220,878 69,429 621,386 902,792 254,944 4,328,680 
Acquired with deteriorated
credit quality
1,684 2,884 19,338 73 — 5,891 10,197 17,085 57,152 
Ending balance -
December 31, 2019
$1,034,036 $551,101 $710,454 $221,530 $69,429 $630,270 $920,744 $272,078 $4,409,642 
Financing Receivable, Amortized Costs Basis By Origination Year
The following table presents the credit quality of our loan portfolio by year of origination as of September 30, 2020. Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for the purposes of the table below.
September 30, 2020
Term Loans
Amortized Cost Basis by Origination Year
20202019201820172016PriorRevolving Loans Amortized Cost BasisTotal
Commercial and industrial
Pass$399,906 $186,100 $69,916 $53,213 $33,976 $45,860 $511,111 $1,300,082 
Watch3,236 3,034 6,283 3,652 11,293 6,245 36,083 69,826 
Substandard6 3,160 17,022 6,552 686 6,869 13,269 47,564 
Doubtful35 — — — — — 164 199 
Total403,183 192,294 93,221 63,417 45,955 58,974 560,627 1,417,671 
Construction
Pass311,117 448,019 110,473 49,845 41,750 75,570 115,894 1,152,668 
Watch1,282 1,231 9,435 13,822 1,305 3,585 — 30,660 
Substandard— 972 642 132 880 4,919 — 7,545 
Doubtful— — — — — 5 — 5 
Total312,399 450,222 120,550 63,799 43,935 84,079 115,894 1,190,878 
Residential real estate:
1-to-4 family mortgage
Pass232,248 203,167 188,471 170,725 119,327 168,732 — 1,082,670 
Watch1,257 786 3,318 12,580 4,155 14,506 — 36,602 
Substandard532 1,452 3,274 4,128 2,039 9,120 — 20,545 
Doubtful— 34 — — 270 490 — 794 
Total234,037 205,439 195,063 187,433 125,791 192,848 — 1,140,611 
Residential line of credit
Pass254 — 87 — 208 3,577 405,767 409,893 
Watch— — — — — — 5,205 5,205 
Substandard109 1 — 3 — — 4,848 4,961 
Doubtful— — — — — — 259 259 
Total363 1 87 3 208 3,577 416,079 420,318 
Multi-family mortgage
Pass23,747 15,055 12,629 54,660 11,718 36,812 11,259 165,880 
Watch— — — — — — — — 
Substandard— — — — — 57.00 — 57 
Doubtful— — — — — — — — 
Total23,747 15,055 12,629 54,660 11,718 36,869 11,259 165,937 
20202019201820172016PriorRevolving Loans Amortized Cost BasisTotal
Commercial real estate:
Owner occupied
Pass99,827 181,214 106,212 97,689 81,383 221,365 49,382 837,072 
Watch3,596 4,343 6,843 22,939 7,858 19,233 3,188 68,000 
Substandard428 1,302 3,815 1,457 2,931 8,440 1,542 19,915 
Doubtful— — — — — — — — 
Total103,851 186,859 116,870 122,085 92,172 249,038 54,112 924,987 
Non-owner occupied
Pass108,229 248,852 360,309 218,431 291,626 250,806 43,005 1,521,258 
Watch— 6,181 5,897 26,361 21,775 43,984 45 104,243 
Substandard— 149 12,130 1,166 1,693 3,761 — 18,899 
Doubtful— — — — — — — — 
Total108,229 255,182 378,336 245,958 315,094 298,551 43,050 1,644,400 
Consumer and other loans
Pass65,261 57,677 42,388 28,207 42,014 32,720 18,440 286,707 
Watch159 707 1,714 1,418 3,044 8,352 392 15,786 
Substandard121 68 264 618 463 2,653 407 4,594 
Doubtful— 260 295 544 196 354 — 1,649 
Total65,541 58,712 44,661 30,787 45,717 44,079 19,239 308,736 
Total
Pass1,240,589 1,340,084 890,485 672,770 622,002 835,442 1,154,858 6,756,230 
Watch9,530 16,282 33,490 80,772 49,430 95,905 44,913 330,322 
Substandard1,196 7,104 37,147 14,056 8,692 35,819 20,066 124,080 
Doubtful35 294 295 544 466 849 423 2,906 
Total$1,251,350 $1,363,764 $961,417 $768,142 $680,590 $968,015 $1,220,260 $7,213,538 
Credit Quality Indicators by Portfolio Class
The following table shows credit quality indicators by class of financing receivable at December 31, 2019.
December 31, 2019PassWatchSubstandardTotal
Loans, excluding purchased credit impaired loans    
Commercial and industrial$946,247 $66,910 $19,195 $1,032,352 
Construction541,201 4,790 2,226 548,217 
Residential real estate:
1-to-4 family mortgage666,177 11,380 13,559 691,116 
Residential line of credit218,086 1,343 2,028 221,457 
Multi-family mortgage69,366 63 — 69,429 
Commercial real estate:
Owner occupied576,737 30,379 17,263 624,379 
Non-owner occupied876,670 24,342 9,535 910,547 
Consumer and other248,632 3,304 3,057 254,993 
Total loans, excluding purchased credit impaired loans$4,143,116 $142,511 $66,863 $4,352,490 
Purchased credit impaired loans    
Commercial and industrial$— $1,224 $460 $1,684 
Construction— 2,681 203 2,884 
Residential real estate:
1-to-4 family mortgage— 15,091 4,247 19,338 
Residential line of credit— — 73 73 
Multi-family mortgage— — — — 
Commercial real estate:  
Owner occupied— 4,535 1,356 5,891 
Non-owner occupied— 6,617 3,580 10,197 
Consumer and other— 13,521 3,564 17,085 
Total purchased credit impaired loans— 43,669 13,483 57,152 
Total loans$4,143,116 $186,180 $80,346 $4,409,642 
Past Due Loans
The following table represents an analysis of the aging by class of financing receivable as of September 30, 2020:
September 30, 202030-89 days
past due		90 days or 
more and accruing
interest 		Non-accrual
loans		Loans current
on payments
and accruing
interest 		Total
Commercial and industrial$1,581 $11 $6,579 $1,409,500 $1,417,671 
Construction4,346 196 2,018 1,184,318 1,190,878 
Residential real estate:
1-to-4 family mortgage4,143 7,452 6,752 1,122,264 1,140,611 
Residential line of credit287 216 1,925 417,890 420,318 
Multi-family mortgage— 57 — 165,880 165,937 
Commercial real estate:
Owner occupied1,096 — 2,194 921,697 924,987 
Non-owner occupied114 — 12,358 1,631,928 1,644,400 
Consumer and other3,584 1,132 2,759 301,261 308,736 
Total$15,151 $9,064 $34,585 $7,154,738 $7,213,538 

The following tables provide the amortized cost basis of loans on non-accrual status, as well as any related allowance and interest income, by class of financing receivable as of and for the three and nine months ended September 30, 2020:
September 30, 2020
u End of period amortized cost
Beginning of
period non-accrual
amortized cost		Non-accrual
with no
related
allowance		Non-accrual
with
related
allowance		Related
allowance
Commercial and industrial$5,586 $913 $5,666 $936 
Construction1,254 980 1,038 145 
Residential real estate:
1-to-4 family mortgage4,585 4,247 2,505 62 
Residential line of credit489 — 1,925 74 
Commercial real estate:
Owner occupied2,285 1,469 725 66 
Non-owner occupied9,460 5,475 6,883 1,568 
Consumer and other1,623 88 2,671 165 
Total$25,282 $13,172 $21,413 $3,016 
Interest Income
September 30, 2020Three Months EndedNine Months Ended
Commercial and industrial$287 $304 
Construction42 48 
Residential real estate:
1-to-4 family mortgage15 21 
Residential line of credit72 72 
Commercial real estate:
Owner occupied32 75 
Non-owner occupied76 185 
Consumer and other— 24 
Total$524 $729 
The following disclosures are presented in accordance with GAAP in effect prior to the adoption of CECL. The Company has included these disclosures to address the applicable prior periods presented.

The following table provides the period-end amounts of loans that are past due, loans not accruing interest and loans current on payments accruing interest by category at December 31, 2019:
 
December 31, 201930-89 days
past due		90 days or 
more and accruing
interest 		Non-accrual
loans		Purchased Credit
Impaired loans 		Loans current on payments and accruing interest Total
Commercial and industrial$1,918 $291 $5,587 $1,684 $1,024,556 $1,034,036 
Construction1,021 42 1,087 2,884 546,067 551,101 
Residential real estate:
1-to-4 family mortgage10,738 3,965 3,332 19,338 673,081 710,454 
Residential line of credit658 412 416 73 219,971 221,530 
Multi-family mortgage63 — — — 69,366 69,429 
Commercial real estate:
Owner occupied1,375 — 1,793 5,891 621,211 630,270 
Non-owner occupied327 — 7,880 10,197 902,340 920,744 
Consumer and other2,377 833 967 17,085 250,816 272,078 
Total$18,477 $5,543 $21,062 $57,152 $4,307,408 $4,409,642 
Impaired Loans Recognized
Impaired loans recognized in conformity with ASC 310 at December 31, 2019 segregated by class, were as follows:
December 31, 2019Recorded
investment		Unpaid
principal		Related
allowance
With a related allowance recorded:
Commercial and industrial$6,080 $8,350 $241 
Residential real estate:
1-to-4 family mortgage264 324 8 
Residential line of credit320 320 9 
Commercial real estate:
Owner occupied756 1,140 238 
Non-owner occupied6,706 6,747 399 
Consumer and other— — — 
Total$14,126 $16,881 $895 
With no related allowance recorded:
Commercial and industrial$2,946 $3,074 $— 
Construction2,061 2,499 — 
Residential real estate:
1-to-4 family mortgage1,083 1,449 — 
Residential line of credit259 280 — 
Commercial real estate:
Owner occupied2,237 2,627 — 
Non-owner occupied1,049 1,781 — 
Consumer and other49 49 — 
Total$9,684 $11,759 $— 
Total impaired loans$23,810 $28,640 $895 
Average recorded investment and interest income on a cash basis recognized during the three and nine months ended September 30, 2019 on impaired loans, segregated by class, were as follows:
Three Months EndedNine Months Ended
September 30, 2019Average recorded investment Interest income recognized (cash basis) Average recorded investment Interest income recognized (cash basis)
With a related allowance recorded:
Commercial and industrial$3,109 $51 $1,850 $156 
Residential real estate:
1-to-4 family mortgage265 2 205 13 
Commercial real estate:
Owner occupied184 4 371 10 
Non-owner occupied6,143 56 6,241 90 
Consumer and other447 — 198 19 
Total$10,148 $113 $8,865 $288 
With no related allowance recorded:
Commercial and industrial$766 $11 $991 $36 
Construction1,639 90 1,641 142 
Residential real estate:
1-to-4 family mortgage835 24 962 50 
Residential line of credit427 — 245 2 
Commercial real estate:
Owner occupied2,045 41 2,171 103 
Non-owner occupied1,050 — 1,050 — 
Consumer and other66 2 69 5 
Total$6,828 $168 $7,129 $338 
Total impaired loans$16,976 $281 $15,994 $626 
Schedule of Changes Value of Accretable Yield of PCI Loans The following table presents changes in the value of the accretable yield for PCI loans for the periods indicated.
Three Months Ended September 30,Nine Months Ended September 30,
 2019 2019 
Balance at the beginning of period$(14,862)$(16,587)
Additions through business combinations— (1,167)
Principal reductions and other reclassifications from nonaccretable difference(150)100 
Accretion1,583 5,471 
Changes in expected cash flows110 (1,136)
Balance at end of period$(13,319)$(13,319)
Financial Effect of TDRs
The following tables present the financial effect of TDRs recorded during the periods indicated.

Three Months Ended September 30, 2020Number of loansPre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves
Commercial and industrial2$420 $420 $— 
Total2$420 $420 $— 
Three Months Ended September 30, 2019Number of loansPre-modification outstanding recorded investmentPost-modification outstanding recorded investmentCharge offs and specific reserves
Commercial and industrial1 $16 $16 $— 
Construction1 1,070 1,070 
Commercial real estate:
Owner occupied1 927 927 — 
Non-owner occupied1 1,366 1,366 106 
Residential real estate:
1-to-4 family mortgage1 128 128 — 
Total5 $3,507 $3,507 $106 
Nine Months Ended September 30, 2020Number of loansPre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves
Commercial and industrial3 $1,573 $1,573 $— 
Commercial real estate:
Owner occupied1 788 788 — 
Non-owner occupied2 3,752 3,752 $— 
Residential real estate:
1-to-4 family mortgage2 77 77 — 
Total8 $6,190 $6,190 $— 
Nine Months Ended September 30, 2019Number of loansPre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves
Commercial and industrial3$3,204 $3,204 $— 
Construction11,070 1,070 — 
Commercial real estate:
Owner occupied1927 927 — 
Non-owner occupied11,366 1,366 106 
Residential real estate:
1-4 family mortgage1128 128 — 
Total7$6,695 $6,695 $106 
Allowance for Credit Losses, Individually Assessed Allowance
For loans for which the repayment (based on the Company's assessment) is expected to be provided substantially through the operation or sale of collateral and the borrower is experiencing financial difficulty, the following table presents the loans and the corresponding individually assessed allowance for credit losses by class of financing receivable.
September 30, 2020
Type of Collateral
Real EstateFinancial Assets and Equipment Individually assessed allowance for credit loss
Commercial and industrial$— $4,697 $668 
Construction1,817 — — 
Residential real estate:
1-to-4 family mortgage190 — — 
Residential line of credit1,195 — 9 
Multi-family mortgage— — — 
Commercial real estate:
Owner occupied928 — 34 
Non-owner occupied8,181 — 1,544 
Consumer and other333 — 36 
Total$12,644 $4,697 $2,291 
Financing Receivable, Deferral Program The following table outlines the Company's recorded investment and percentage of loans held for investment by class of financing receivable for Company executed deferrals that remain on deferral at September 30, 2020, in connection with Company COVID-19 relief programs. These deferrals typically ranged from sixty to ninety days per deferral and were not considered TDRs under the interagency regulatory guidance or the CARES Act issued in March 2020. As of September 30, 2020, the Company had a total of $1,181,232 loans previously deferred that returned to normal payment status.
September 30, 2020
% of Loans
Commercial and industrial$25,641 1.8 %
Construction35,920 3.0 %
Residential real estate:
1-to-4 family mortgage43,281 3.8 %
Residential line of credit9,226 2.2 %
Multi-family mortgage19,005 11.5 %
Commercial real estate:
Owner occupied60,614 6.6 %
Non-owner occupied270,552 16.5 %
Consumer and other593 0.2 %
Total$464,832 6.4 %