Loans

12 Months Ended

Dec. 31, 2020

Loans and Leases Receivable Disclosure [Abstract]

Loans

LOANS

The following summarizes the Company’s major classifications for loans (in thousands):

	December 31, 2020		December 31, 2019
Commercial and industrial	$	372,989	$	308,015
1-4 Family	109,812		N/R
Hotels	294,464		N/R
Multi-family	215,671		N/R
Non Residential Non-Owner Occupied	641,351		N/R
Non Residential Owner Occupied	213,484		N/R
Commercial real estate	1,474,782		1,459,737
Residential real estate	1,587,694		1,640,396
Home equity	136,469		148,928
Consumer	47,688		54,263
DDA overdrafts	2,497		4,760
Gross loans	3,622,119		3,616,099
Allowance for credit losses	(24,549)		(11,589)
Net loans	$	3,597,570	$	3,604,510
Construction loans included in:
Residential real estate	$	27,078	$	29,033
Commercial real estate	40,449		64,049
N/R = Not reported. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP.

    The Company's commercial and residential real estate construction loans are primarily secured by real estate within the Company's principal markets. These loans were originated under the Company's loan policy, which is focused on the risk characteristics of the loan portfolio, including construction loans. In the judgment of the Company's management, adequate consideration has been given to these loans in establishing the Company's allowance for credit losses.

Paycheck Protection Program

The Company originated loans to its customers under the Paycheck Protection Program ("PPP") administered by the Small Business Administration ("SBA") under the provisions of the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). Loans covered by the PPP may be eligible for loan forgiveness. The remaining loan balances, if any, after the loan forgiveness, are fully guaranteed by the SBA. Through December 31, 2020, the Company has funded approximately $90 million of SBA-approved PPP loans to over 1,500 customers. Under the terms of the program, the SBA paid the lender a processing fee tiered by the size of the loan (5% for loans less than $350,000; 3% for loans greater than $350,000 but less than $2.0 million; and 1% for loans greater than $2.0 million). The Company started submitting forgiveness applications on behalf of its customers during the fourth quarter of 2020 and as of December 31, 2020, has received forgiveness proceeds of approximately $30 million.