Loans and Allowance for Credit Losses

3 Months Ended

Mar. 31, 2020

Loans and Leases Receivable Disclosure [Abstract]

Loans

LOANS AND ALLOWANCE FOR CREDIT LOSSES FOR LOANS

Loans are generally stated at the amount of unpaid principal, reduced by unearned discount and the ACLL. Interest on loans is accrued daily on the outstanding balances.  Loan origination fees and certain direct loan origination costs are deferred and amortized as adjustments of the related loan yield over its contractual life.

Generally, loans are placed on nonaccrual status when principal or interest is greater than 90 days past due based upon the loan's contractual terms. Interest on nonaccrual loans is recognized primarily using the cost-recovery method.  Loans may be returned to accrual status when repayment is reasonably assured and there has been demonstrated performance under the terms of the loan or, if applicable, the terms of the restructured loans.

Commercial-related loans or portions thereof are charged off to the ACLL when the loss has been confirmed.  This determination is made on a case by case basis considering many factors, including the prioritization of our claim in bankruptcy, expectations of the workout/restructuring of the loan and valuation of the borrower’s equity.  We deem a loss confirmed when a loan or a portion of a loan is classified “loss” in accordance with bank regulatory classification guidelines, which state, “Assets classified loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted”.

Consumer-related loans are generally charged to the ACLL upon reaching specified stages of delinquency, in accordance with the Federal Financial Institutions Examination Council policy.  For example, credit card loans are charged off by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification about a specified event (e.g., bankruptcy of the borrower), whichever is earlier.  Residential mortgage loans are generally charged off to net realizable value no later than when the account becomes 180 days past due.  Other consumer loans, if collateralized, are generally charged down to net realizable value at 120 days past due.

The following table presents the amortized cost of loans held for investment:

Dollars in thousands	March 31, 2020		December 31, 2019
Commercial	$	236,622	$	220,452
Commercial real estate - owner occupied
Professional & medical	88,518		81,973
Retail	118,535		100,993
Other	124,433		93,253
Commercial real estate - non-owner occupied
Hotels & motels	120,201		128,665
Mini-storage	55,097		50,913
Multifamily	142,918		164,398
Retail	107,420		102,989
Other	154,983		182,242
Construction and development
Land & land development	92,332		84,112
Construction	43,121		37,523
Residential 1-4 family real estate
Personal residence	276,189		260,843
Rental - small loan	102,351		101,080
Rental - large loan	64,944		63,986
Home equity	75,170		76,568
Mortgage warehouse lines	166,826		126,237
Consumer	35,344		35,021
Other
Credit cards	1,673		1,453
Overdrafts	592		798
Total loans, net of unearned fees	2,007,269		1,913,499
Less allowance for credit losses - loans	24,608		13,074
Loans, net	$	1,982,661	$	1,900,425

Allowance for Credit Losses - Loans

The ACLL is a valuation allowance, estimated at each balance sheet date in accordance with ASC 326, that is deducted from the amortized cost basis of loans to present the net amount expected to be collected. The amount of the ACLL represents our best estimate of current expected credit losses on loans considering available information, from internal and external sources, relevant to assessing collectability over the loans’ contractual terms, adjusted for expected prepayments when appropriate (the “life-of-loan” concept). The contractual term excludes expected extensions, renewals and modifications unless (i) management has a reasonable expectation that a troubled debt restructuring will be executed with an individual borrower or (ii) such extension or renewal options are not unconditionally cancellable by us and, in such cases, the borrower is likely to meet applicable conditions and likely to request extension or renewal. Relevant available information includes historical credit loss experience, current conditions and reasonable and supportable forecasts. While historical credit loss experience provides the basis for the estimation of expected credit losses, adjustments to historical loss information may be made for differences in current portfolio-specific risk characteristics, environmental conditions or other relevant factors. The ACLL losses is measured on a collective basis for portfolios of loans when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Expected credit losses for collateral dependent loans, including loans where the borrower is experiencing financial difficulty, but foreclosure is not probable, are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate.

Expected credit losses are reflected in the ACLL through a charge to provision for credit losses. When we deem all or a portion of a financial asset to be uncollectible the appropriate amount is written off and the ACLL is reduced by the same amount. The Company applies judgment to determine when a financial asset is deemed uncollectible; however, generally speaking, an asset will be considered uncollectible no later than when all efforts at collection have been exhausted. Subsequent recoveries, if any, are credited to the ACLL when received.

Loan Pools. In calculating the ACLL, most loans are segmented into pools based upon similar characteristics and risk profiles. Common characteristics and risk profiles include the type/purpose of loan, underlying collateral, geographical similarity and historical/expected credit loss patterns. In developing these loan pools for the purposes of modeling expected credit losses, we also analyzed the degree of correlation in how loans within each portfolio respond when subjected to varying economic conditions

and scenarios as well as other portfolio stress factors. We have identified the following pools of financial assets with similar risk characteristics for measuring expected credit losses:

▪ Commercial

• Commercial real estate - owner occupied

▪ Professional & medical

▪ Retail

▪ Other

• Commercial real estate - non-owner occupied

▪ Hotels & motels

▪ Mini-storage

▪ Multifamily

▪ Retail

▪ Other

• Construction & development

▪ Land & land development

▪ Construction

• Residential 1-4 family real estate

▪ Personal residence

▪ Rental - small loan

▪ Rental - large loan

▪ Home equity

• Mortgage warehouse lines

• Consumer

• Other

▪ Credit cards

▪ Overdrafts

Residential 1-4 family rentals are classified as small loan if the original loan amount is less than $600,000 and classified as large loan if the original loan amount equals or exceeds $600,000.

We periodically reassess each pool to ensure the loans within the pool continue to share similar characteristics and risk profiles and to determine whether further segmentation is necessary.

The Company’s methodology for estimating the ACLL considers available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. The methodology applies historical loss information, adjusted for asset-specific characteristics, economic conditions at the measurement date, and forecasts about future economic conditions expected to exist through the contractual lives of the financial assets that are reasonable and supportable, to the identified pools of financial assets with similar risk characteristics for which the historical loss experience was observed. Our methodology reverts to historical loss information immediately when it can no longer develop reasonable and supportable forecasts.

Loss-Rate Method. We use a loss-rate (“cohort”) method to estimate expected credit losses for all loan pools. The cohort method identifies and captures the balances of pooled loans with similar risk characteristics, as of a point in time to form a cohort, then tracks the respective losses generated by that cohort of loans over their remaining lives, or until the loans are “exhausted” (reached an acceptable stage at which a significant majority of all losses are expected to have been recognized). This method encompasses loan balances for as long as the loans are outstanding, so while significant history is required to represent the life-of-loan concept, this method does not require as much history due to its inclusion of loan balances in multiple cohort periods.

Qualitative Factors. We qualitatively adjust our loan loss rates for risk factors that are not otherwise considered within our model but are nonetheless relevant in assessing the expected credit losses within our loan pools. These qualitative factor (“Q-Factor”) adjustments may increase or decrease our estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk.

One Q-Factor adjustment to our loss rates is consideration of reasonable and supportable forecasts of economic conditions. In arriving at a reasonable and supportable economic forecast, we primarily consider the forecasted unemployment rates for the U.S., West Virginia and Virginia as loss drivers for each segmented loan pool. Secondarily, we consider the following forecasted economic data for one or more of our segmented loan pools depending on the nature of the underlying loan pool: housing price indices (U.S., West Virginia & Virginia), single-family housing starts (West Virginia & Virginia), multi-family housing starts (West Virginia &

Virginia), personal income growth (U.S., West Virginia & Virginia), U.S. consumer confidence, rental vacancy rates (U.S.), and U.S. % change in gross domestic product.

Other risks that we may consider in making Q-Factor adjustments include, among other things, the impact of (i) changes in lending policies and procedures, including changes in underwriting standards and practices for collections, write-offs, and recoveries, (ii) changes in the nature and volume of the loan pools and in the terms of the underlying loans, (iii) changes in the experience, ability, and depth of our lending management and staff, (iv) changes in volume and severity of past due financial assets, the volume of non-accrual assets, and the volume and severity of adversely classified or graded assets, (v) changes in the quality of our credit review function, (vi) changes in the value of the underlying collateral for loans that are non-collateral dependent, (vii) the existence, growth, and effect of any concentrations of credit and (viii) other external factors such as the regulatory, legal and technological environments; competition; and events such as natural disasters or health pandemics.

Collateral Dependent Loans. We may determine that an individual loan exhibits unique risk characteristics which differentiate it from other loans within our loan pools. In such cases, the loans are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Specific allocations of the allowance for credit losses are determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower’s industry, among other things. A loan is considered to be collateral dependent when, based upon management's assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In such cases, expected credit losses are based on the fair value of the collateral at the measurement date, adjusted for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. We reevaluate the fair value of collateral supporting collateral dependent loans on a quarterly basis. The fair value of real estate collateral supporting collateral dependent loans is evaluated by appraisal services using a methodology that is consistent with the Uniform Standards of Professional Appraisal Practice.

Troubled Debt Restructuring. A loan that has been modified or renewed is considered a troubled debt restructuring (“TDR”) when two conditions are met: 1) the borrower is experiencing financial difficulty and 2) concessions are made for the borrower's benefit that would not otherwise be considered for a borrower or transaction with similar credit risk characteristics. The Company’s ACLL reflects all effects of a TDR when an individual asset is specifically identified as a reasonably expected TDR. The Company has determined that a TDR is reasonably expected no later than the point when the lender concludes that modification is the best course of action and it is at least reasonably possible that the troubled borrower will accept some form of concession from the lender to avoid a default. TDRs that are considered material ($500,000 and greater) are evaluated individually to determine the required ACLL. TDRs that are not considered material may be included in the Company’s existing pools based on the underlying risk characteristics of the loan to measure the ACLL.

The following table presents the activity in the ACLL by portfolio segment during the first three months of 2020:

	For the Three Months Ended March 31, 2020
	Allowance for Credit Losses - Loans
Dollars in thousands	Beginning Balance Prior to Adoption of ASC 326		Impact of Adoption of ASC 326			Provision for Credit Losses - Loans			Day 1 Adjustment for PCD Acquired Loans		Charge- offs			Recoveries		Ending Balance
Commercial	$	1,221	$	1,064		$	174		$	—	$	(25	)	$	7	$	2,441
Commercial real estate - owner occupied
Professional & medical	1,058		(390		)	36			—		—			—		704
Retail	820		(272		)	558			153		—			10		1,269
Other	821		(137		)	506			—		—			—		1,190
Commercial real estate - non-owner occupied
Hotels & motels	1,235		(936		)	1,688			—		—			—		1,987
Mini-storage	485		(311		)	31			—		—			—		205
Multifamily	1,534		8			(808		)	—		—			—		734
Retail	964		279			202			—		(342		)	2		1,105
Other	1,721		(1,394		)	(31		)	—		—			—		296
Construction and development
Land & land development	600		2,136			1,273			111		(3		)	3		4,120
Construction	242		996			440			—		—			—		1,678
Residential 1-4 family real estate
Personal residence	1,275		1,282			433			146		(4		)	17		3,149
Rental - small loan	532		1,453			128			—		(20		)	72		2,165
Rental - large loan	49		2,884			(246		)	—		—			—		2,687
Home equity	138		308			62			—		(23		)	2		487
Mortgage warehouse lines	—		—			—			—		—			—		—
Consumer	379		(238		)	179			—		(118		)	38		240
Other
Credit cards	—		12			29			—		(30		)	5		16
Overdrafts	—		182			45			—		(133		)	41		135
Total	$	13,074	$	6,926		$	4,699		$	410	$	(698	)	$	197	$	24,608

The following table presents, as of March 31, 2020 segregated by loan portfolio segment, details of the loan portfolio and the ACLL calculated in accordance with our credit loss accounting methodology for loans described above.

	March 31, 2020
	Loan Balances						Allowance for Credit Losses - Loans
Dollars in thousands	Loans Individually Evaluated		Loans Collectively Evaluated		Total		Loans Individually Evaluated		Loans Collectively Evaluated		Total
Commercial	$	5,012	$	231,610	$	236,622	$	40	$	2,401	$	2,441
Commercial real estate - owner occupied
Professional & medical	3,846		84,672		88,518		404		300		704
Retail	6,554		111,981		118,535		—		1,269		1,269
Other	—		124,433		124,433		—		1,190		1,190
Commercial real estate - non-owner occupied
Hotels & motels	—		120,201		120,201		—		1,987		1,987
Mini-storage	—		55,097		55,097		—		205		205
Multifamily	—		142,918		142,918		—		734		734
Retail	2,522		104,898		107,420		57		1,048		1,105
Other	5,337		149,646		154,983		—		296		296
Construction and development
Land & land development	1,641		90,691		92,332		577		3,543		4,120
Construction	—		43,121		43,121		—		1,678		1,678
Residential 1-4 family real estate
Personal residence	617		275,572		276,189		—		3,149		3,149
Rental - small loan	782		101,569		102,351		16		2,149		2,165
Rental - large loan	4,421		60,523		64,944		—		2,687		2,687
Home equity	523		74,647		75,170		—		487		487
Consumer	—		35,344		35,344		—		240		240
Other
Credit cards	—		1,673		1,673		—		16		16
Overdrafts	—		592		592		—		135		135
Mortgage warehouse lines	—		166,826		166,826		—		—		—
Total	$	31,255	$	1,976,014	$	2,007,269	$	1,094	$	23,514	$	24,608

The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACLL allocated to those loans:

	March 31, 2020
Dollars in thousands	Real Estate Secured Loans		Non-Real Estate Secured Loans		Total Loans		Allowance for Credit Losses - Loans
Commercial	$	—	$	5,012	$	5,012	$	40
Commercial real estate - owner occupied
Professional & medical	1,597		—		1,597		162
Retail	2,265		—		2,265		—
Other	—		—		—		—
Commercial real estate - non-owner occupied
Hotels & motels	—		—		—		—
Mini-storage	—		—		—		—
Multifamily	—		—		—		—
Retail	651		—		651		56
Other	2,957		—		2,957		—
Construction and development
Land & land development	1,006		—		1,006		577
Construction	—		—		—		—
Residential 1-4 family real estate
Personal residence	617		—		617		—
Rental - small loan	782		—		782		16
Rental - large loan	3,328		—		3,328		—
Home equity	—		—		—		—
Consumer	—		—		—		—
Other
Credit cards	—		—		—		—
Overdrafts	—		—		—		—
Total	$	13,203	$	5,012	$	18,215	$	851

The following table presents the activity in the ACLL by portfolio segment for the year ended December 31, 2019, as determined in accordance with ASC 310 prior to the January 1, 2020 adoption of ASC 326:

	For the Year Ended December 31, 2019
	Allowance for Credit Losses - Loans
Dollars in thousands	Beginning  Balance		Charge- offs			Recoveries		Provision			Ending Balance
Commercial	$	1,705	$	(281	)	$	17	$	(295	)	$	1,146
Commercial real estate
Owner occupied	2,214		(2		)	21		467			2,700
Non-owner occupied	5,742		(170		)	1		366			5,939
Construction and development
Land & land development	339		(2		)	108		155			600
Construction	64		—			—		178			242
Residential real estate
Non-jumbo	2,090		(979		)	125		576			1,812
Jumbo	379		—			—		(368		)	11
Home equity	167		(24		)	19		(24		)	138
Mortgage warehouse lines	—		—			—		—			—
Consumer	79		(285		)	168		173			135
Other	268		(360		)	121		322			351
Total	$	13,047	$	(2,103	)	$	580	$	1,550		$	13,074

The following table presents the contractual aging of the amortized cost basis of past due loans by class as of March 31, 2020 and December 31, 2019.

	At March 31, 2020
	Past Due										90 days or more and Accruing
Dollars in thousands	30-59 days		60-89 days		90 days or more		Total		Current
Commercial	$	248	$	119	$	393	$	760	$	235,862	$	—
Commercial real estate - owner occupied
Professional & medical	10		—		1,734		1,744		86,774		—
Retail	933		—		2,439		3,372		115,163		—
Other	—		—		345		345		124,088		—
Commercial real estate - non-owner occupied
Hotels & motels	—		—		—		—		120,201		—
Mini-storage	—		—		—		—		55,097		—
Multifamily	—		—		211		211		142,707		—
Retail	—		178		651		829		106,591		—
Other	986		114		51		1,151		153,832		—
Construction and development
Land & land development	53		—		11		64		92,268		—
Construction	—		—		—		—		43,121		—
Residential 1-4 family real estate
Personal residence	2,935		943		1,332		5,210		270,979		—
Rental - small loan	271		54		1,412		1,737		100,614		—
Rental - large loan	1,093		—		—		1,093		63,851		—
Home equity	61		124		154		339		74,831		—
Mortgage warehouse lines	—		—		—		—		166,826		—
Consumer	154		83		33		270		35,074		—
Other
Credit cards	4		3		12		19		1,654		12
Overdrafts	—		—		—		—		592		—
Total	$	6,748	$	1,618	$	8,778	$	17,144	$	1,990,125	$	12

	At December 31, 2019
	Past Due										90 days or more and Accruing
Dollars in thousands	30-59 days		60-89 days		90 days or more		Total		Current
Commercial	$	216	$	—	$	483	$	699	$	219,753	$	—
Commercial real estate - owner occupied
Professional & medical	—		137		1,602		1,739		80,234		—
Retail	118		—		2,434		2,552		98,441		—
Other	—		—		—		—		93,253		—
Commercial real estate - non-owner occupied
Hotels & motels	—		—		—		—		128,665		—
Mini-storage	—		—		—		—		50,913		—
Multifamily	809		—		7		816		163,582		—
Retail	71		179		968		1,218		101,771		—
Other	—		—		387		387		181,855		—
Construction and development
Land & land development	208		28		188		424		83,688		—
Construction	—		—		138		138		37,385		—
Residential 1-4 family real estate
Personal residence	3,361		806		937		5,104		255,739		—
Rental - small loan	810		21		940		1,771		99,309		—
Rental - large loan	—		—		—		—		63,986		—
Home equity	760		—		223		983		75,585		—
Mortgage warehouse lines	—		—		—		—		126,237		—
Consumer	190		79		70		339		34,682		—
Other
Credit cards	19		6		42		67		1,386		42
Overdrafts	—		—		—		—		798		—
Total	$	6,562	$	1,256	$	8,419	$	16,237	$	1,897,262	$	42

Nonaccrual loans:  The following table presents the nonaccrual loans included in the net balance of loans at March 31, 2020 and December 31, 2019.

	March 31,				December 31,
	2020				2019
Dollars in thousands	Nonaccrual		Nonaccrual with No Allowance for Credit Losses - Loans		Nonaccrual		Nonaccrual with No Allowance for Credit Losses - Loans
Commercial	$	660	$	—	$	864	$	76
Commercial real estate - owner occupied
Professional & medical	1,734		—		1,602		—
Retail	2,554		2,265		2,552		2,262
Other	388		—		43		—
Commercial real estate - non-owner occupied
Hotels & motels	—		—		—		—
Mini-storage	55		—		57		—
Multifamily	211		—		38		31
Retail	651		167		1,120		527
Other	51		—		388		40
Construction and development
Land & land development	11		—		188		—
Construction	—		—		138		—
Residential 1-4 family real estate
Personal residence	1,997		—		2,485		423
Rental - small loan	2,136		83		1,635		150
Rental - large loan	—		—		—		—
Home equity	210		—		284		—
Mortgage warehouse lines	—		—		—		—
Consumer	53		—		74		—
Other
Credit cards	—		—		—		—
Overdrafts	—		—		—		—
Total	$	10,711	$	2,515	$	11,468	$	3,509

Credit Quality Indicators: We categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. We analyze loans individually by classifying the loans as to credit risk.  We internally grade all commercial loans at the time of loan origination. In addition, we perform an annual loan review on all non-homogenous commercial loan relationships with an aggregate exposure of $5.0 million, at which time these loans are re-graded. We use the following definitions for our risk grades:

Pass: Loans graded as Pass are loans to borrowers of acceptable credit quality and risk. They are higher quality loans that do not fit any of the other categories described below.

OLEM (Special Mention):  Commercial loans categorized as OLEM are potentially weak. The credit risk may be relatively minor yet represent a risk given certain specific circumstances. If the potential weaknesses are not monitored or mitigated, the asset may weaken or inadequately protect our position in the future.

Substandard:   Commercial loans categorized as Substandard are inadequately protected by the borrower’s ability to repay, equity and/or the collateral pledged to secure the loan. These loans have identified weaknesses that could hinder normal repayment or collection of the debt. These loans are characterized by the distinct possibility that we will sustain some loss if the identified weaknesses are not mitigated.

Doubtful:  Commercial loans categorized as Doubtful have all the weaknesses inherent in those loans classified as Substandard, with the added elements that the full collection of the loan is improbable and the possibility of loss is high.

Loss:  Loans classified as loss are considered to be non-collectible and of such little value that their continuance as a bankable asset is not warranted. This does not mean that the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future.

Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for purposes of the table below. As of March 31, 2020, based on the most recent analysis performed, the risk category of loans based on year of origination is as follows:

	March 31, 2020
Dollars in thousands	Risk Rating	2020		2019		2018		2017		2016		Prior		Revolvi- ng		Revolving- Term		Total
Commercial	Pass	$	9,821	$	44,711	$	31,911	$	25,730	$	16,175	$	14,658	$	84,372	$	—	$	227,378
	Special Mention	—		45		1,966		86		134		914		432		—		3,577
	Substandard	1,166		216		244		9		117		128		3,787		—		5,667
Total Commercial		10,987		44,972		34,121		25,825		16,426		15,700		88,591		—		236,622
Commercial Real Estate    - Owner Occupied
Professional & medical	Pass	4,085		6,131		2,625		27,712		3,910		37,578		3,299		—		85,340
	Special Mention	1,188		—		—		—		—		256		—		—		1,444
	Substandard	—		—		—		—		137		1,597		—		—		1,734
Total Professional & Medical		5,273		6,131		2,625		27,712		4,047		39,431		3,299		—		88,518
Retail	Pass	18,461		39,838		5,326		11,538		6,401		30,548		2,411		—		114,523
	Special Mention	—		—		—		590		9		859		—		—		1,458
	Substandard	—		—		—		—		—		2,554		—		—		2,554
Total Retail		18,461		39,838		5,326		12,128		6,410		33,961		2,411		—		118,535
Other	Pass	13,415		15,232		17,585		9,744		21,576		35,532		9,719		—		122,803
	Special Mention	—		—		—		—		—		807		—		—		807
	Substandard	—		—		—		360		—		420		43		—		823
Total Other		13,415		15,232		17,585		10,104		21,576		36,759		9,762		—		124,433
Total Commercial Real Estate -    Owner Occupied		37,149		61,201		25,536		49,944		32,033		110,151		15,472		—		331,486
Commercial Real Estate    - Non-Owner Occupied
Hotels & motels	Pass	3,457		61,358		18,043		9,942		10,997		14,858		1,546		—		120,201
	Special Mention	—		—		—		—		—		—		—		—		—
	Substandard	—		—		—		—		—		—		—		—		—
Total Hotels & Motels		3,457		61,358		18,043		9,942		10,997		14,858		1,546		—		120,201
Mini-storage	Pass	3,742		19,158		15,230		4,081		7,407		5,250		174		—		55,042
	Special Mention	—		—		—		—		—		55		—		—		55
	Substandard	—		—		—		—		—		—		—		—		—
Total Mini-storage		3,742		19,158		15,230		4,081		7,407		5,305		174		—		55,097
Multifamily	Pass	4,345		27,186		27,440		19,281		11,435		49,939		2,947		—		142,573
	Special Mention	—		—		—		—		—		104		—		—		104
	Substandard	—		—		—		—		—		241		—		—		241
Total Multifamily		4,345		27,186		27,440		19,281		11,435		50,284		2,947		—		142,918

	March 31, 2020
Dollars in thousands	Risk Rating	2020	2019	2018	2017	2016	Prior	Revolvi- ng	Revolving- Term	Total
Retail	Pass	3,978	25,968	12,380	8,552	5,934	44,012	5,037	—	105,861
	Special Mention	—	—	—	178	—	585	—	—	763
	Substandard	—	—	—	—	—	796	—	—	796
Total Retail		3,978	25,968	12,380	8,730	5,934	45,393	5,037	—	107,420
Other	Pass	6,012	21,200	51,880	11,228	28,061	31,540	1,780	—	151,701
	Special Mention	—	—	—	—	—	274	—	—	274
	Substandard	—	—	—	—	—	3,008	—	—	3,008
Total Other		6,012	21,200	51,880	11,228	28,061	34,822	1,780	—	154,983
Total Commercial Real Estate -    Non-Owner Occupied		21,534	154,870	124,973	53,262	63,834	150,662	11,484	—	580,619
Construction and Development
Land & land development	Pass	1,634	33,039	9,603	5,368	7,059	24,530	9,048	—	90,281
	Special Mention	—	—	14	—	—	727	—	—	741
	Substandard	—	—	—	—	15	1,295	—	—	1,310
Total Land & land development		1,634	33,039	9,617	5,368	7,074	26,552	9,048	—	92,332
Construction	Pass	2,677	23,791	8,499	6,190	—	—	1,964	—	43,121
	Special Mention	—	—	—	—	—	—	—	—	—
	Substandard	—	—	—	—	—	—	—	—	—
Total Construction		2,677	23,791	8,499	6,190	—	—	1,964	—	43,121
Total Construction and    Development		4,311	56,830	18,116	11,558	7,074	26,552	11,012	—	135,453
Residential 1-4 Family Real Estate
Personal residence	Pass	7,744	32,737	29,372	22,589	25,890	133,941	—	—	252,273
	Special Mention	—	188	63	122	131	13,160	—	—	13,664
	Substandard	—	156	534	382	409	8,771	—	—	10,252
Total Personal Residence		7,744	33,081	29,969	23,093	26,430	155,872	—	—	276,189
Rental - small loan	Pass	4,233	18,803	14,402	13,068	12,026	28,924	4,551	—	96,007
	Special Mention	112	471	253	3	203	2,081	32	—	3,155
	Substandard	—	—	—	—	254	2,935	—	—	3,189
Total Rental - Small Loan		4,345	19,274	14,655	13,071	12,483	33,940	4,583	—	102,351
Rental - large loan	Pass	2,664	8,129	7,912	7,142	8,460	23,749	1,003	—	59,059
	Special Mention	—	1,430	—	—	1,093	34	—	—	2,557
	Substandard	—	—	—	—	—	3,328	—	—	3,328
Total Rental - Large Loan		2,664	9,559	7,912	7,142	9,553	27,111	1,003	—	64,944
Home equity	Pass	66	—	91	86	134	1,439	71,143	—	72,959
	Special Mention	—	—	—	40	—	142	1,354	—	1,536
	Substandard	—	—	—	—	—	343	332	—	675
Total Home Equity		66	—	91	126	134	1,924	72,829	—	75,170

	March 31, 2020
Dollars in thousands	Risk Rating	2020		2019		2018		2017		2016		Prior		Revolvi- ng		Revolving- Term		Total
Total Residential 1-4 Family Real    Estate		14,819		61,914		52,627		43,432		48,600		218,847		78,415		—		518,654
Mortgage warehouse lines	Pass	—		—		—		—		—		—		166,826		—		166,826
	Special Mention	—		—		—		—		—		—		—		—		—
	Substandard	—		—		—		—		—		—		—		—		—
Total Mortgage Warehouse Lines		—		—		—		—		—		—		166,826		—		166,826
Consumer	Pass	4,026		14,306		7,234		3,000		1,983		1,907		645		—		33,101
	Special Mention	183		752		408		268		119		71		17		—		1,818
	Substandard	76		181		29		33		66		12		28		—		425
Total Consumer		4,285		15,239		7,671		3,301		2,168		1,990		690		—		35,344
Other
Credit cards	Pass	1,673		—		—		—		—		—		—		—		1,673
	Special Mention	—		—		—		—		—		—		—		—		—
	Substandard	—		—		—		—		—		—		—		—		—
Total Credit Cards		1,673		—		—		—		—		—		—		—		1,673
Overdrafts	Pass	592		—		—		—		—		—		—		—		592
	Special Mention	—		—		—		—		—		—		—		—		—
	Substandard	—		—		—		—		—		—		—		—		—
Total Overdrafts		592		—		—		—		—		—		—		—		592
Total Other		2,265		—		—		—		—		—		—		—		2,265
Total		$	95,350	$	395,026	$	263,044	$	187,322	$	170,135	$	523,902	$	372,490	$	—	$	2,007,269

At March 31, 2020, we had TDRs of $25.8 million, of which $22.4 million were current with respect to restructured contractual payments. At December 31, 2019, our TDRs totaled $25.7 million, of which $22.9 million were current with respect to restructured contractual payments.  There were no commitments to lend additional funds under these restructurings at either balance sheet date.

The following tables present by class the TDRs that were restructured during the three months ended March 31, 2020 and March 31, 2019. Generally, the modifications were extensions of term, modifying the payment terms from principal and interest to interest only for an extended period, or reduction in interest rate.  TDRs are evaluated individually for allowance for credit loss purposes if the loan balance exceeds $500,000, otherwise, smaller balance TDR loans are included in the pools to determine ACLL.

	For the Three Months Ended   March 31, 2020					For the Three Months Ended   March 31, 2019
Dollars in thousands	Number of Modifications	Pre- modification Recorded Investment		Post- modification Recorded Investment		Number of Modifications	Pre- modification Recorded Investment		Post- modification Recorded Investment
Commercial	—	$	—	$	—	—	$	—	$	—
Commercial real estate - owner occupied
Professional & medical	—	—		—		—	—		—
Retail	—	—		—		—	—		—
Other	1	361		361		1	325		325
Commercial real estate - non-owner occupied
Hotels & motels	—	—		—		—	—		—
Mini-storage	—	—		—		—	—		—
Multifamily	—	—		—		1	35		35
Retail	—	—		—		2	162		162
Other	—	—		—		1	126		126
Construction and development
Land & land development	—	—		—		—	—		—
Construction	—	—		—		—	—		—
Residential 1-4 family real estate						—	—		—
Personal residence	—	—		—		3	151		151
Rental - small loan	—	—		—		4	259		259
Rental - large loan	—	—		—		—	—		—
Home equity	—	—		—		—	—		—
Mortgage warehouse lines	—	—		—		—	—		—
Consumer	—	—		—		1	16		16
Total	1	$	361	$	361	13	$	1,074	$	1,074

The following tables present defaults during the stated period of TDRs that were restructured during the prior 12 months. For purposes of these tables, a default is considered as either the loan was past due 30 days or more at any time during the period, or the loan was fully or partially charged off during the period.

	For the Three Months Ended   March 31, 2020			For the Three Months Ended   March 31, 2019
Dollars in thousands	Number of Defaults	Recorded Investment at Default Date		Number of Defaults	Recorded Investment at Default Date
Commercial	—	$	—	2	$	157
Commercial real estate - owner occupied
Professional & medical	—	—		—	—
Retail	—	—		—	—
Other	1	361		—	—
Commercial real estate - non-owner occupied
Hotels & motels	—	—		—	—
Mini-storage	—	—		—	—
Multifamily	—	—		—	—
Retail	—	—		—	—
Other	—	—		1	127
Construction and development
Land & land development	—	—		—	—
Construction	—	—		—	—
Residential 1-4 family real estate
Personal residence	—	—		4	614
Rental - small loan	—	—		3	146
Rental - large loan	—	—		—	—
Home equity	—	—		—	—
Mortgage warehouse lines	—	—		—	—
Consumer	—	—		—	—
Total	1	$	361	10	$	1,044

As of April 30, 2020, we had executed 550 modifications to interest only or principal and interest deferrals on outstanding loan balances of $338 million in connection with the COVID-19 relief provided by the CARES Act. These modifications and deferrals were generally no more than 6 months in duration and were not considered troubled debt restructurings based on interagency guidance issued in March 2020.

On January 1, 2020, we purchased loans, for which there was, at the time of acquisition, more than significant deterioration of credit quality since origination (PCD loans). The carrying amount of these loans at acquisition is as follows:

Dollars in thousands	January 1, 2020
Purchase price of PCD loans at acquisition	$	1,877
Allowance for credit losses - loans at acquisition	410
Non-credit discount at acquisition	159
Par value of PCD loans at acquisition	1,308