Loans and Allowance for Credit Losses

9 Months Ended

Sep. 30, 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	September 30, 2020		December 31, 2019
Commercial	$	350,985	$	220,452
Commercial real estate - owner occupied
Professional & medical	94,635		81,973
Retail	100,926		100,993
Other	116,941		93,253
Commercial real estate - non-owner occupied
Hotels & motels	120,324		128,665
Mini-storage	57,601		50,913
Multifamily	152,561		164,398
Retail	108,326		102,989
Other	179,812		182,242
Construction and development
Land & land development	97,343		84,112
Construction	66,878		37,523
Residential 1-4 family real estate
Personal residence	263,315		260,843
Rental - small loan	104,694		101,080
Rental - large loan	73,836		63,986
Home equity	82,991		76,568
Mortgage warehouse lines	243,730		126,237
Consumer	34,655		35,021
Other
Credit cards	1,637		1,453
Overdrafts	614		798
Total loans, net of unearned fees	2,251,804		1,913,499
Less allowance for credit losses - loans	29,354		13,074
Loans, net	$	2,222,450	$	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 pools of financial assets with similar risk characteristics for measuring expected credit losses as presented in the table of amortized cost of loans held for investment above.

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.

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.

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 nine months of 2020:

	For the Nine Months Ended September 30, 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		Adjustment for PCD Acquired Loans		Charge- offs		Recoveries		Ending Balance
Commercial	$	1,221	$	1,064	$	662	$	—	$	(99)	$	27	$	2,875
Commercial real estate - owner occupied
Professional & medical	1,058		(390)		1,209		—		(1,005)		—		872
Retail	820		(272)		2,285		153		—		162		3,148
Other	821		(137)		(6)		—		—		—		678
Commercial real estate - non-owner occupied
Hotels & motels	1,235		(936)		1,833		—		—		—		2,132
Mini-storage	485		(311)		58		—		—		—		232
Multifamily	1,534		8		(900)		—		—		38		680
Retail	964		279		403		—		(343)		2		1,305
Other	1,721		(1,394)		600		—		—		—		927
Construction and development
Land & land development	600		2,136		1,334		111		(4)		39		4,216
Construction	242		996		2,150		—		—		—		3,388
Residential 1-4 family real estate
Personal residence	1,275		1,282		(35)		146		(45)		49		2,672
Rental - small loan	532		1,453		283		—		(123)		127		2,272
Rental - large loan	49		2,884		(317)		—		—		—		2,616
Home equity	138		308		499		—		(23)		39		961
Mortgage warehouse lines	—		—		—		—		—		—		—
Consumer	379		(238)		194		—		(212)		101		224
Other
Credit cards	—		12		28		—		(33)		9		16
Overdrafts	—		182		128		—		(288)		118		140
Total	$	13,074	$	6,926	$	10,408	$	410	$	(2,175)	$	711	$	29,354

The following table presents, as of September 30, 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.

	September 30, 2020
	Loan Balances						Allowance for Credit Losses - Loans
Dollars in thousands	Loans Individually Evaluated		Loans Collectively Evaluated (1)		Total		Loans Individually Evaluated		Loans Collectively Evaluated		Total
Commercial	$	4,242	$	346,743	$	350,985	$	20	$	2,855	$	2,875
Commercial real estate - owner occupied
Professional & medical	2,197		92,438		94,635		230		642		872
Retail	16,220		84,706		100,926		2,142		1,006		3,148
Other	—		116,941		116,941		—		678		678
Commercial real estate - non-owner occupied
Hotels & motels	—		120,324		120,324		—		2,132		2,132
Mini-storage	—		57,601		57,601		—		232		232
Multifamily	—		152,561		152,561		—		680		680
Retail	2,507		105,819		108,326		57		1,248		1,305
Other	5,229		174,583		179,812		—		927		927
Construction and development
Land & land development	1,621		95,722		97,343		640		3,576		4,216
Construction	—		66,878		66,878		—		3,388		3,388
Residential 1-4 family real estate
Personal residence	—		263,315		263,315		—		2,672		2,672
Rental - small loan	726		103,968		104,694		44		2,228		2,272
Rental - large loan	4,445		69,391		73,836		—		2,616		2,616
Home equity	523		82,468		82,991		—		961		961
Consumer	—		34,655		34,655		—		224		224
Other
Credit cards	—		1,637		1,637		—		16		16
Overdrafts	—		614		614		—		140		140
Mortgage warehouse lines	—		243,730		243,730		—		—		—
Total	$	37,710	$	2,214,094	$	2,251,804	$	3,133	$	26,221	$	29,354

(1) Included in the loans collectively evaluated are $106.4 million in fully guaranteed or cash secured loans, which are excluded from the pools collectively evaluated and carry no reserve.

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:

	September 30, 2020
Dollars in thousands	Real Estate Secured Loans		Non-Real Estate Secured Loans		Total Loans		Allowance for Credit Losses - Loans
Commercial	$	—	$	4,243	$	4,243	$	20
Commercial real estate - owner occupied
Professional & medical	—		—		—		—
Retail	11,937		—		11,937		2,142
Other	—		—		—		—
Commercial real estate - non-owner occupied
Hotels & motels	—		—		—		—
Mini-storage	—		—		—		—
Multifamily	—		—		—		—
Retail	653		—		653		57
Other	2,890		—		2,890		—
Construction and development
Land & land development	995		—		995		640
Construction	—		—		—		—
Residential 1-4 family real estate
Personal residence	—		—		—		—
Rental - small loan	726		—		726		44
Rental - large loan	4,444		—		4,444		—
Home equity	—		—		—		—
Consumer	—		—		—		—
Other
Credit cards	—		—		—		—
Overdrafts	—		—		—		—
Total	$	21,645	$	4,243	$	25,888	$	2,903

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 September 30, 2020 and December 31, 2019.

	At September 30, 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	$	160	$	42	$	412	$	614	$	350,371	$	—
Commercial real estate - owner occupied
Professional & medical	116		—		453		569		94,066		—
Retail	307		591		2,445		3,343		97,583		—
Other	—		—		149		149		116,792		—
Commercial real estate - non-owner occupied
Hotels & motels	—		—		—		—		120,324		—
Mini-storage	—		—		—		—		57,601		—
Multifamily	—		417		—		417		152,144		—
Retail	—		—		821		821		107,505		—
Other	—		310		53		363		179,449		—
Construction and development
Land & land development	93		329		2		424		96,919		—
Construction	—		—		—		—		66,878		—
Residential 1-4 family real estate
Personal residence	3,062		579		1,112		4,753		258,562		—
Rental - small loan	243		—		794		1,037		103,657		—
Rental - large loan	—		—		1,127		1,127		72,709		—
Home equity	516		156		137		809		82,182		—
Mortgage warehouse lines	—		—		—		—		243,730		—
Consumer	128		32		27		187		34,468		—
Other
Credit cards	1		—		2		3		1,634		2
Overdrafts	—		—		—		—		614		—
Total	$	4,626	$	2,456	$	7,534	$	14,616	$	2,237,188	$	2

	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 September 30, 2020 and December 31, 2019.

	September 30,				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	$	553	$	—	$	864	$	76
Commercial real estate - owner occupied
Professional & medical	453		—		1,602		—
Retail	2,551		2,268		2,552		2,262
Other	383		—		43		—
Commercial real estate - non-owner occupied
Hotels & motels	—		—		—		—
Mini-storage	52		—		57		—
Multifamily	—		—		38		31
Retail	821		168		1,120		527
Other	53		—		388		40
Construction and development
Land & land development	2		—		188		—
Construction	—		—		138		—
Residential 1-4 family real estate
Personal residence	2,093		—		2,485		423
Rental - small loan	1,702		105		1,635		150
Rental - large loan	1,127		1,127		—		—
Home equity	182		—		284		—
Mortgage warehouse lines	—		—		—		—
Consumer	29		—		74		—
Other
Credit cards	—		—		—		—
Overdrafts	—		—		—		—
Total	$	10,001	$	3,668	$	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 September 30, 2020, based on the most recent analysis performed, the risk category of loans based on year of origination is as follows:

	September 30, 2020
Dollars in thousands	Risk Rating	2020		2019		2018		2017		2016		Prior		Revolvi- ng		Revolving- Term		Total
Commercial	Pass	$	152,812	$	51,021	$	23,084	$	20,745	$	13,647	$	14,098	$	67,155	$	—	$	342,562
	Special Mention	10		40		1,959		81		90		918		558		—		3,656
	Substandard	1,039		191		198		46		41		89		3,163		—		4,767
Total Commercial		153,861		51,252		25,241		20,872		13,778		15,105		70,876		—		350,985
Commercial Real Estate - Owner Occupied
Professional & medical	Pass	7,435		14,460		2,580		27,117		3,370		30,154		2,689		—		87,805
	Special Mention	1,178		—		—		—		—		5,199		—		—		6,377
	Substandard	—		320		—		—		133		—		—		—		453
Total Professional & Medical		8,613		14,780		2,580		27,117		3,503		35,353		2,689		—		94,635
Retail	Pass	4,691		28,183		5,222		10,721		6,040		28,879		2,236		—		85,972
	Special Mention	—		1,239		—		591		6		848		50		—		2,734
	Substandard	—		9,669		—		—		—		2,551		—		—		12,220
Total Retail		4,691		39,091		5,222		11,312		6,046		32,278		2,286		—		100,926
Other	Pass	24,437		15,558		16,567		9,539		13,284		34,420		1,635		—		115,440
	Special Mention	—		—		—		—		—		760		—		—		760
	Substandard	—		—		—		358		—		342		41		—		741
Total Other		24,437		15,558		16,567		9,897		13,284		35,522		1,676		—		116,941
Total Commercial Real Estate - Owner Occupied		37,741		69,429		24,369		48,326		22,833		103,153		6,651		—		312,502
Commercial Real Estate - Non-Owner Occupied
Hotels & motels	Pass	3,457		61,244		15,796		9,901		10,417		14,692		4,817		—		120,324
	Special Mention	—		—		—		—		—		—		—		—		—
	Substandard	—		—		—		—		—		—		—		—		—
Total Hotels & Motels		3,457		61,244		15,796		9,901		10,417		14,692		4,817		—		120,324
Mini-storage	Pass	6,200		19,974		14,971		4,029		7,239		4,869		267		—		57,549
	Special Mention	—		—		—		—		—		52		—		—		52
	Substandard	—		—		—		—		—		—		—		—		—
Total Mini-storage		6,200		19,974		14,971		4,029		7,239		4,921		267		—		57,601
Multifamily	Pass	17,022		26,957		26,917		18,556		11,271		49,091		2,648		—		152,462
	Special Mention	—		—		—		—		—		99		—		—		99
	Substandard	—		—		—		—		—		—		—		—		—
Total Multifamily		17,022		26,957		26,917		18,556		11,271		49,190		2,648		—		152,561

	September 30, 2020
Dollars in thousands	Risk Rating	2020	2019	2018	2017	2016	Prior	Revolvi- ng	Revolving- Term	Total
Retail	Pass	13,044	23,808	9,980	8,399	5,410	40,150	6,158	—	106,949
	Special Mention	—	—	—	168	—	556	—	—	724
	Substandard	—	—	—	—	—	653	—	—	653
Total Retail		13,044	23,808	9,980	8,567	5,410	41,359	6,158	—	108,326
Other	Pass	34,265	20,985	51,645	11,077	27,276	29,466	1,697	—	176,411
	Special Mention	—	—	—	—	—	458	—	—	458
	Substandard	—	—	—	—	—	2,943	—	—	2,943
Total Other		34,265	20,985	51,645	11,077	27,276	32,867	1,697	—	179,812
Total Commercial Real Estate - Non-Owner Occupied		73,988	152,968	119,309	52,130	61,613	143,029	15,587	—	618,624
Construction and Development
Land & land development	Pass	12,711	29,048	10,899	4,844	6,709	22,665	8,361	—	95,237
	Special Mention	—	—	13	—	—	955	—	—	968
	Substandard	—	—	6	—	14	1,118	—	—	1,138
Total Land & land development		12,711	29,048	10,918	4,844	6,723	24,738	8,361	—	97,343
Construction	Pass	31,366	30,661	1,959	895	—	—	1,997	—	66,878
	Special Mention	—	—	—	—	—	—	—	—	—
	Substandard	—	—	—	—	—	—	—	—	—
Total Construction		31,366	30,661	1,959	895	—	—	1,997	—	66,878
Total Construction and Development		44,077	59,709	12,877	5,739	6,723	24,738	10,358	—	164,221
Residential 1-4 Family Real Estate
Personal residence	Pass	28,233	28,257	25,264	19,494	22,875	117,412	—	—	241,535
	Special Mention	—	187	63	352	76	12,908	—	—	13,586
	Substandard	—	46	463	213	186	7,286	—	—	8,194
Total Personal Residence		28,233	28,490	25,790	20,059	23,137	137,606	—	—	263,315
Rental - small loan	Pass	15,175	15,938	12,684	11,630	10,586	28,501	4,570	—	99,084
	Special Mention	111	491	251	3	196	1,789	163	—	3,004
	Substandard	—	—	—	—	45	2,561	—	—	2,606
Total Rental - Small Loan		15,286	16,429	12,935	11,633	10,827	32,851	4,733	—	104,694
Rental - large loan	Pass	13,396	6,089	10,906	5,423	8,317	21,491	2,306	—	67,928
	Special Mention	—	1,430	—	—	—	33	—	—	1,463
	Substandard	—	—	—	—	1,127	3,318	—	—	4,445
Total Rental - Large Loan		13,396	7,519	10,906	5,423	9,444	24,842	2,306	—	73,836
Home equity	Pass	131	—	90	46	266	1,434	78,799	—	80,766
	Special Mention	—	—	—	40	—	162	1,426	—	1,628
	Substandard	—	—	—	—	—	355	242	—	597
Total Home Equity		131	—	90	86	266	1,951	80,467	—	82,991

	September 30, 2020
Dollars in thousands	Risk Rating	2020		2019		2018		2017		2016		Prior		Revolvi- ng		Revolving- Term		Total
Total Residential 1-4 Family Real Estate		57,046		52,438		49,721		37,201		43,674		197,250		87,506		—		524,836
Mortgage warehouse lines	Pass	—		—		—		—		—		—		243,730		—		243,730
	Special Mention	—		—		—		—		—		—		—		—		—
	Substandard	—		—		—		—		—		—		—		—		—
Total Mortgage Warehouse Lines		—		—		—		—		—		—		243,730		—		243,730
Consumer	Pass	10,441		10,748		5,139		1,977		1,432		1,679		862		—		32,278
	Special Mention	789		549		270		170		81		62		17		—		1,938
	Substandard	178		132		22		15		59		5		28		—		439
Total Consumer		11,408		11,429		5,431		2,162		1,572		1,746		907		—		34,655
Other
Credit cards	Pass	1,637		—		—		—		—		—		—		—		1,637
	Special Mention	—		—		—		—		—		—		—		—		—
	Substandard	—		—		—		—		—		—		—		—		—
Total Credit Cards		1,637		—		—		—		—		—		—		—		1,637
Overdrafts	Pass	614		—		—		—		—		—		—		—		614
	Special Mention	—		—		—		—		—		—		—		—		—
	Substandard	—		—		—		—		—		—		—		—		—
Total Overdrafts		614		—		—		—		—		—		—		—		614
Total Other		2,251		—		—		—		—		—		—		—		2,251
Total		$	380,372	$	397,225	$	236,948	$	166,430	$	150,193	$	485,021	$	435,615	$	—	$	2,251,804

At September 30, 2020, we had TDRs of $25.2 million, of which $21.3 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 table presents by class the TDRs that were restructured during the three and nine months ended September 30, 2020 and September 30, 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   September 30, 2020					For the Three Months Ended   September 30, 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
Residential 1-4 family real estate
Personal residence	1	$	48	$	48	—	—		—
Rental - small loan	1	399		399		—	—		—
Total	2	$	447	$	447	—	$	—	$	—

	For the Nine Months Ended   September 30, 2020					For the Nine Months Ended   September 30, 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 real estate - owner occupied
Other	1	$	361	$	361	1	$	325	$	325
Commercial real estate - non-owner occupied
Multifamily	—	—		—		1	35		35
Retail	—	—		—		2	162		162
Other	—	—		—		1	127		127
Residential 1-4 family real estate
Personal residence	1	48		48		3	151		151
Rental - small loan	1	399		399		4	259		259
Consumer	—	—		—		1	16		16
Total	3	$	808	$	808	13	$	1,075	$	1,075

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   September 30, 2020			For the Three Months Ended   September 30, 2019
Dollars in thousands	Number of Defaults	Recorded Investment at Default Date		Number of Defaults	Recorded Investment at Default Date
Commercial real estate - owner occupied
Other	1	$	361	—	$	—
Commercial real estate - non-owner occupied
Other	—	—		1	126
Residential 1-4 family real estate
Personal residence	1	49		2	122
Rental - small loan	—	—		1	52
Total	2	$	410	4	$	300

	For the Nine Months Ended   September 30, 2020			For the Nine Months Ended   September 30, 2019
Dollars in thousands	Number of Defaults	Recorded Investment at Default Date		Number of Defaults	Recorded Investment at Default Date
Commercial real estate - owner occupied
Other	1	$	361	—	$	—
Commercial real estate - non-owner occupied
Other	—	—		1	126
Residential 1-4 family real estate
Personal residence	1	49		2	122
Rental - small loan	—	—		1	52
Total	2	$	410	4	$	300

As of September 30, 2020, we had loans modifications to interest only or principal and interest deferrals on outstanding loan balances of $117.7 million in connection with the COVID-19 relief provided by the CARES Act. These modifications and deferrals were not considered troubled debt restructurings as permitted by provisions in the CARES Act.

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