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LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS (Tables)
 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Loans and Leases Receivable Disclosure [Abstract]    
Composition of Loan Portfolio, Excluding Residential Loans Held for Sale
The composition of the Company’s loan portfolio, excluding residential loans held for sale, was as follows for the dates indicated:
(In thousands)September 30,
2021		December 31,
2020
Commercial Loans:
Commercial real estate - non owner-occupied$1,128,560 $1,097,975 
Commercial real estate - owner-occupied291,117 271,495 
Commercial352,533 381,494 
SBA PPP81,959 135,095 
Total commercial loans1,854,169 1,886,059 
Retail Loans:
Residential real estate1,222,084 1,054,798 
Home equity218,797 258,573 
Consumer20,253 20,392 
Total retail loans1,461,134 1,333,763 
Total loans$3,315,303 $3,219,822 
  
Schedule of Loan Balances by Portfolio Segment
The loan balances for each portfolio segment presented above are net of their respective unamortized fair value mark discount on acquired loans and net of unamortized loan origination costs for the dates indicated:
(In thousands)September 30,
2021		December 31,
2020
Net unamortized fair value mark discount on acquired loans$(703)$(1,291)
Net unamortized loan origination costs(1)
176 856 
Total$(527)$(435)
(1)    Includes unamortized loan fees on SBA PPP loans of $3.7 million and $2.2 million as of September 30, 2021 and December 31, 2020, respectively.
  
Summary of Activity in Allowance for Loan Losses
The following table presents the activity in the ACL on loans, as reported under CECL, for the periods indicated:
Commercial Real Estate
(In thousands)Non Owner-OccupiedOwner- OccupiedCommercialSBA PPPResidential Real EstateHome EquityConsumerTotal
At or For The Three Months Ended September 30, 2021
Beginning balance, June 30, 2021$19,577 $2,516 $4,342 $66 $3,205 $2,065 $289 $32,060 
Loans charged off— — (97)— (4)— (20)(121)
Recoveries— 2 49 — 2 4 7 64 
Provision (credit) for loan losses157 (214)295 (23)450 (231)(165)269 
Ending balance, September 30, 2021$19,734 $2,304 $4,589 $43 $3,653 $1,838 $111 $32,272 
At or For The Nine Months Ended September 30, 2021
Beginning balance, December 31, 2020$21,778 $2,832 $6,703 $69 $3,474 $2,616 $393 $37,865 
Loans charged off— — (503)— (92)(145)(88)(828)
Recoveries— 7 159 — 72 4 30 272 
(Credit) provision for loan losses(2,044)(535)(1,770)(26)199 (637)(224)(5,037)
Ending balance, September 30, 2021$19,734 $2,304 $4,589 $43 $3,653 $1,838 $111 $32,272 
At or For The Year Ended December 31, 2020
Beginning balance, December 31, 2019$10,924 $1,490 $3,985 $— $5,842 $2,423 $507 $25,171 
Impact of adopting CECL(1)
(668)(90)1,548 — (1,129)792 (220)233 
Loans charged off(82)(21)(1,130)— (121)(317)(167)(1,838)
Recoveries107 13 572 — 292 33 67 1,084 
Provision (credit) for loan losses11,497 1,440 1,728 69 (1,410)(315)206 13,215 
Ending balance, December 31, 2020$21,778 $2,832 $6,703 $69 $3,474 $2,616 $393 $37,865 
(1)    The Company adopted ASU 2016-13, "CECL," effective January 1, 2020 but applied to reporting periods on or after October 1, 2020.
The following table presents activity in the ACL on loans and select loan information by portfolio segment, under the incurred loss methodology, for the periods indicated:
(In thousands)
Commercial
Real Estate(1)
CommercialSBA PPPResidential
Real Estate		Home
Equity		ConsumerTotal
At or For The Three and Nine Months Ended September 30, 2020
Allowance for the three months ended:      
Beginning balance$18,386 $4,849 $113 $8,603 $3,084 $504 $35,539 
Loans charged off(33)(184)— (25)(10)(55)(307)
Recoveries3 139 — 4 — 36 182 
Provision (credit)1,173 (267)2 124 (51)19 1,000 
Ending balance$19,529 $4,537 $115 $8,706 $3,023 $504 $36,414 
Allowance for the nine months ended:
Beginning balance$12,414 $3,985 $— $5,842 $2,423 $507 $25,171 
Loans charged off(104)(857)— (121)(61)(138)(1,281)
Recoveries10 255 — 27 4 56 352 
Provision7,209 1,154 115 2,958 657 79 12,172 
Ending balance$19,529 $4,537 $115 $8,706 $3,023 $504 $36,414 
Allowance balance attributable to loans:      
Individually evaluated for impairment$36 $— $— $371 $87 $— $494 
Collectively evaluated for impairment19,493 4,537 115 8,335 2,936 504 35,920 
Total ending allowance$19,529 $4,537 $115 $8,706 $3,023 $504 $36,414 
Loans:
      
Individually evaluated for impairment$460 $171 $— $3,128 $365 $— $4,124 
Collectively evaluated for impairment1,333,273 375,377 223,838 1,040,975 274,378 22,877 3,270,718 
Total ending loans balance
$1,333,733 $375,548 $223,838 $1,044,103 $274,743 $22,877 $3,274,842 
(1)    Includes both commercial real estate - non owner-occupied and owner-occupied loan segments.
Credit Risk Exposure Indicators by Portfolio Segment Based on the most recent analysis performed, the risk category of loans by portfolio segment by vintage, reported under the CECL methodology, was as follows as of the dates indicated:
(In thousands)20212020201920182017PriorRevolving Loans
Amortized Cost Basis		Revolving Loans
Converted to Term		Total
As of September 30, 2021
Commercial real estate - non owner-occupied      
Risk rating
Pass (Grades 1-6)$157,849 $193,303 $186,028 $122,607 $102,457 $302,680 $— $— $1,064,924 
Special mention (Grade 7)— 7,309 2,351 33 4,318 10,655 — — 24,666 
Substandard (Grade 8)212 1,688 220 10,028 394 26,428 — — 38,970 
Doubtful (Grade 9)— — — — — — — — — 
Total commercial real estate - non owner-occupied158,061 202,300 188,599 132,668 107,169 339,763 — — 1,128,560 
Commercial real estate - owner-occupied      
Risk rating
Pass (Grades 1-6)61,023 34,052 32,078 45,469 47,963 62,421 — — 283,006 
Special mention (Grade 7)— — — 3,427 — 1,554 — — 4,981 
Substandard (Grade 8)— — 63 — 1,808 1,259 — — 3,130 
Doubtful (Grade 9)— — — — — — — — — 
Total commercial real estate - owner occupied61,023 34,052 32,141 48,896 49,771 65,234 — — 291,117 
Commercial
      
Risk rating
Pass (Grades 1-6)60,833 47,710 50,233 26,459 15,094 32,082 83,456 31,621 347,488 
Special mention (Grade 7)— 73 118 295 716 455 494 265 2,416 
Substandard (Grade 8)— 280 347 298 113 1,282 — 309 2,629 
Doubtful (Grade 9)— — — — — — — — — 
Total commercial60,833 48,063 50,698 27,052 15,923 33,819 83,950 32,195 352,533 
SBA PPP
Risk rating
Pass (Grades 1-6)78,252 3,238 — — — — — — 81,490 
Special mention (Grade 7)469 — — — — — — — 469 
Substandard (Grade 8)— — — — — — — — — 
Doubtful (Grade 9)— — — — — — — — — 
Total SBA PPP78,721 3,238 — — — — — — 81,959 
Residential Real Estate      
Risk rating
Pass (Grades 1-6)430,952 303,375 119,118 73,832 49,827 239,596 892 — 1,217,592 
Special mention (Grade 7)— — — — 234 — — 234 
Substandard (Grade 8)— — — 142 — 4,116 — — 4,258 
Doubtful (Grade 9)— — — — — — — — — 
Total residential real estate430,952 303,375 119,118 73,974 49,827 243,946 892 — 1,222,084 
Home equity
      
Risk rating
Performing553 559 7,060 12,368 2,678 12,429 168,441 13,308 217,396 
Non-performing— — — 41 — 196 930 234 1,401 
Total home equity
553 559 7,060 12,409 2,678 12,625 169,371 13,542 218,797 
Consumer
      
Risk rating
Performing6,270 4,169 3,839 1,397 667 2,046 1,837 — 20,225 
Non-performing— 9 16 — — 3 — — 28 
Total consumer
6,270 4,178 3,855 1,397 667 2,049 1,837 — 20,253 
Total Loans$796,413 $595,765 $401,471 $296,396 $226,035 $697,436 $256,050 $45,737 $3,315,303 
(In thousands)20202019201820172016PriorRevolving Loans
Amortized Cost Basis		Revolving Loans
Converted to Term		Total
As of December 31, 2020
Commercial real estate - non owner-occupied
Risk rating
Pass (Grades 1-6)$138,010 $224,148 $144,552 $119,409 $157,588 $264,253 $— $— $1,047,960 
Special mention (Grade 7)5,739 — — 4,256 3,497 847 — — 14,339 
Substandard (Grade 8)24 125 2,070 405 1,522 31,530 — — 35,676 
Doubtful (Grade 9)— — — — — — — — — 
Total commercial real estate - non owner-occupied143,773 224,273 146,622 124,070 162,607 296,630 — — 1,097,975 
Commercial real estate - owner-occupied
Risk rating
Pass (Grades 1-6)35,948 29,217 48,312 47,065 25,507 76,098 — — 262,147 
Special mention (Grade 7)— — 4,584 — — 1,513 — — 6,097 
Substandard (Grade 8)— — 891 462 — 1,898 — — 3,251 
Doubtful (Grade 9)— — — — — — — — — 
Total commercial real estate - owner occupied35,948 29,217 53,787 47,527 25,507 79,509 — — 271,495 
Commercial
Risk rating
Pass (Grades 1-6)53,966 72,863 40,688 25,478 15,788 51,869 72,425 37,026 370,103 
Special mention (Grade 7)— 22 313 4,924 117 400 — 867 6,643 
Substandard (Grade 8)187 1,012 211 51 42 2,081 65 1,099 4,748 
Doubtful (Grade 9)— — — — — — — — — 
Total commercial54,153 73,897 41,212 30,453 15,947 54,350 72,490 38,992 381,494 
SBA PPP
Risk rating
Pass (Grades 1-6)135,095 — — — — — — — 135,095 
Special mention (Grade 7)— — — — — — — — — 
Substandard (Grade 8)— — — — — — — — — 
Doubtful (Grade 9)— — — — — — — — — 
Total SBA PPP135,095 — — — — — — — 135,095 
Residential Real Estate
Risk rating
Pass (Grades 1-6)339,834 183,877 119,426 79,159 57,269 266,324 3,028 — 1,048,917 
Special mention (Grade 7)— — — — — 398 — — 398 
Substandard (Grade 8)— — 176 487 — 4,820 — — 5,483 
Doubtful (Grade 9)— — — — — — — — — 
Total residential real estate339,834 183,877 119,602 79,646 57,269 271,542 3,028 — 1,054,798 
Home equity
Risk rating
Performing855 9,415 17,281 3,478 1,339 17,664 194,065 12,480 256,577 
Non-performing— — — — — 207 1,241 548 1,996 
Total home equity
855 9,415 17,281 3,478 1,339 17,871 195,306 13,028 258,573 
Consumer
Risk rating
Performing6,572 6,525 3,096 1,359 378 1,780 678 — 20,388 
Non-performing— — — — 4 — — — 4 
Total consumer
6,572 6,525 3,096 1,359 382 1,780 678 — 20,392 
Total Loans$716,230 $527,204 $381,600 $286,533 $263,051 $721,682 $271,502 $52,020 $3,219,822 
  
Loan Aging Analysis by Portfolio Segment
The following is a loan aging analysis by portfolio segment (including loans past due over 90 days and non-accrual loans) and loans past due over 90 days and accruing as of the following dates:
(In thousands)30-59 Days
Past Due		60-89 Days
Past Due		90 Days or Greater
Past Due		Total
Past Due		CurrentTotal Loans
Outstanding		Loans > 90
Days Past
Due and
Accruing
September 30, 2021       
Commercial real estate - non owner-occupied$— $— $52 $52 $1,128,508 $1,128,560 $— 
Commercial real estate - owner-occupied86 — 47 133 290,984 291,117 
Commercial557 — 813 1,370 351,163 352,533 — 
SBA PPP— — — — 81,959 81,959 — 
Residential real estate1,056 240 1,158 2,454 1,219,630 1,222,084 — 
Home equity369 30 894 1,293 217,504 218,797 — 
Consumer45 8 28 81 20,172 20,253 — 
Total$2,113 $278 $2,992 $5,383 $3,309,920 $3,315,303 $— 
December 31, 2020       
Commercial real estate - non owner-occupied$— $50 $173 $223 $1,097,752 $1,097,975 $— 
Commercial real estate - owner-occupied99 — 47 146 271,349 271,495 — 
Commercial430 — 857 1,287 380,207 381,494 — 
SBA PPP— — — — 135,095 135,095 — 
Residential real estate1,406 1,103 2,535 5,044 1,049,754 1,054,798 — 
Home equity335 173 1,416 1,924 256,649 258,573 — 
Consumer92 67 4 163 20,229 20,392 — 
Total$2,362 $1,393 $5,032 $8,787 $3,211,035 $3,219,822 $— 
  
Financing Receivable, Nonaccrual
The following table presents the amortized cost basis of loans on non-accrual status (including non-accruing TDRs) by portfolio segment as of the dates indicated:
September 30,
2021		December 31,
2020
(In thousands)Non-Accrual Loans With an AllowanceNon-Accrual Loans Without an AllowanceTotal Non-Accrual LoansNon-Accrual Loans With an AllowanceNon-Accrual Loans Without an AllowanceTotal Non-Accrual Loans
Commercial real estate - non owner-occupied$59 $14 $73 $351 $15 $366 
Commercial real estate - owner-occupied87 47 134 99 47 146 
Commercial811 49 860 1,549 58 1,607 
Residential real estate2,378 198 2,576 3,136 341 3,477 
Home equity1,401 — 1,401 1,961 35 1,996 
Consumer28 — 28 4 — 4 
Total$4,764 $308 $5,072 $7,100 $496 $7,596 

The following table presents the amortized cost basis of collateral-dependent non-accrual loans (including non-accruing TDRs) by portfolio segment and collateral type, as of the dates indicated:
September 30,
2021		December 31,
2020
Collateral TypeTotal Collateral -Dependent
Non-Accrual Loans		Collateral TypeTotal Collateral -Dependent
Non-Accrual Loans
(In thousands)Real EstateGeneral Business AssetsReal Estate General Business Assets
Commercial$— $— $— $— $689 $689 
Residential real estate131 — 131 248 — 248 
Home equity88 — 88 — — — 
Total$219 $— $219 $248 $689 $937 
  
Troubled Debt Restructuring and Specific Reserve Related to TDRs The following is a summary of TDRs, by portfolio segment, and the associated specific reserve included within the ACL for the dates indicated:
Number of ContractsRecorded InvestmentSpecific Reserve
(In thousands, except number of contracts)
September 30,
2021		December 31,
2020		September 30,
2021		December 31,
2020		September 30,
2021		December 31,
2020
Commercial real estate - owner-occupied1 2 $120 $328 $42 $37 
Commercial
2 2 80 100 — — 
Residential real estate
19 21 2,353 2,638 361 364 
Consumer and home equity
2 — 230 — 22 — 
Total24 25 $2,783 $3,066 $425 $401 
  
Troubled Debt Restructuring
The following represents loan modifications that qualify as TDRs that occurred during the periods indicated:
Number of ContractsPre-Modification
Outstanding
Recorded Investment		Post-Modification
Outstanding
Recorded Investment		Specific Reserve
(In thousands, except number of contracts)20212020202120202021202020212020
For the Nine Months Ended September 30,:
Home equity:
Interest rate concession and payment deferral1 — $159 $— $170 $— $56 $— 
Maturity concession1 — 144 — 143 — 6 — 
Total2 — $303 $— $313 $— $62 $— 
  
Summary of Impaired Loan Balances and Associated Allowance by Portfolio Segment   The following is a summary of impaired loan balances and the associated allowance by portfolio segment as of and for the periods indicated:
For the
Three Months Ended		For the
Nine Months Ended
(In thousands)Recorded
Investment		Unpaid
Principal
Balance		Related
Allowance		Average
Recorded
Investment		Interest
Income
Recognized		Average
Recorded
Investment		Interest
Income
Recognized
September 30, 2020:
With an allowance recorded:     
Commercial real estate$126 $126 $36 $127 $2 $127 $6 
Commercial— — — — — — — 
SBA PPP— — — — — — — 
Residential real estate2,394 2,394 371 2,349 33 2,328 79 
Home equity316 316 87 317 — 318 — 
Consumer— — — — — — — 
Ending balance2,836 2,836 494 2,793 35 2,773 85 
Without an allowance recorded:
     
Commercial real estate334 548 — 334 3 304 9 
Commercial171 233 — 175 1 242 4 
SBA PPP— — — — — — — 
Residential real estate734 858 — 791 2 909 4 
Home equity49 187 — 50 — 52 — 
Consumer— — — — — — — 
Ending balance1,288 1,826 — 1,350 6 1,507 17 
Total impaired loans$4,124 $4,662 $494 $4,143 $41 $4,280 $102