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Note 3 - Loans and Allowance for Credit Losses on Loans

3 Months Ended

Mar. 31, 2021

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

(3)

Loans and Allowance for Credit Losses on Loans

Composition of loans by class follows:

(in thousands)	March 31, 2021		December 31, 2020

Commercial real estate - non-owner occupied	$	876,523	$	833,470
Commercial real estate - owner occupied		527,316		508,672
Total commercial real estate		1,403,839		1,342,142

Commercial and industrial - term		509,567		525,776
Commercial and industrial - term - PPP		612,885		550,186
Commercial and industrial - lines of credit		260,206		276,646
Total commercial and industrial		1,382,658		1,352,608

Residential real estate - owner occupied		262,516		239,191
Residential real estate - non-owner occupied		136,380		140,930
Total residential real estate		398,896		380,121

Construction and land development		281,815		291,764
Home equity lines of credit		91,233		95,366
Consumer		51,058		44,606
Leases		14,115		14,786
Credits cards - commercial		11,542		10,203
Total loans (1)	$	3,635,156	$	3,531,596

(1) Total loans are presented inclusive of premiums, discounts and net loan origination fees and costs.

Accrued interest on loans, which is excluded from the amortized cost of loans, totaled $11 million and $12 million at March 31, 2021 and December 31, 2020, respectively, and was included in the consolidated balance sheets.

Loans with carrying amounts of $2.0 billion were pledged to secure FHLB borrowing capacity at both March 31, 2021 and December 31, 2020, respectively.

Loans to directors and their related interests, including loans to companies for which directors are principal owners and executive officers, totaled $52 million and $43 million as of March 31, 2021 and December 31, 2020, respectively.

Bancorp’s estimate of the ACL on loans reflects losses expected over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications. The ACL on loans decreased $1.2 million, or 2%, from December 31, 2020 to March 31, 2021, which was attributed largely to an improved unemployment forecast and general improvement in other underlying CECL model factors, offset partially by loan growth.

The table below reflects activity in the ACL related to loans:

(in thousands) Three Months Ended March 31, 2021	Beginning Balance		Provision for Credit Losses on Loans			Charge-offs			Recoveries		Ending Balance

Commercial real estate - non-owner occupied	$	19,396	$	635		$	-		$	31	$	20,062
Commercial real estate - owner occupied		6,983		82			-			-		7,065
Total commercial real estate		26,379		717			-			31		27,127

Commercial and industrial - term		8,970		(452	)		(55	)		6		8,469
Commercial and industrial - lines of credit		3,614		(631	)		-			-		2,983
Total commercial and industrial		12,584		(1,083	)		(55	)		6		11,452

Residential real estate - owner occupied		3,389		(94	)		(3	)		-		3,292
Residential real estate - non-owner occupied		1,818		(110	)		-			1		1,709
Total residential real estate		5,207		(204	)		(3	)		1		5,001

Construction and land development		6,119		(592	)		-			-		5,527
Home equity lines of credit		895		(52	)		-			-		843
Consumer		340		41			(64	)		78		395
Leases		261		(26	)		-			-		235
Credit cards - commercial		135		(1	)		-			-		134
Total net loan (charge-offs) recoveries	$	51,920	$	(1,200	)	$	(122	)	$	116	$	50,714

(in thousands) Three Months Ended March 31, 2020	Beginning Balance		Impact of Adopting ASC 326			Initial ACL on Loans Purchased with Credit Deterioration		Provision for Credit Losses on Loans			Charge-offs			Recoveries		Ending Balance

Commercial real estate - non-owner occupied	$	5,235	$	2,946		$	152	$	5,100		$	-		$	3	$	13,436
Commercial real estate - owner occupied		3,327		1,542			1,350		290			-			-		6,509
Total commercial real estate		8,562		4,488			1,502		5,390			-			3		19,945

Commercial and industrial - term		6,782		365			-		837			-			6		7,990
Commercial and industrial - lines of credit		5,657		(1,528	)		-		(263	)		-			-		3,866
Total commercial and industrial		12,439		(1,163	)		-		574			-			6		11,856

Residential real estate - owner occupied		1,527		1,087			99		(11	)		-			-		2,702
Residential real estate - non-owner occupied		947		429			-		43			-			-		1,419
Total residential real estate		2,474		1,516			99		32			-			-		4,121

Construction and land development		2,105		3,056			-		24			-			-		5,185
Home equity lines of credit		728		114			-		(219	)		-			-		623
Consumer		100		264			34		(138	)		(174	)		111		197
Leases		237		(4	)		-		(74	)		-			-		159
Credit cards - commercial		146		(50	)		-		(39	)		-			-		57
Total net loan (charge-offs) recoveries	$	26,791	$	8,221		$	1,635	$	5,550		$	(174	)	$	120	$	42,143

The following table presents the amortized cost basis of non-performing loans and the amortized cost basis of loans on non-accrual status for which there was no related ACL losses:

	Non-accrual Loans						Past Due 90-Days-
(in thousands)	*With No*		*Total*		*Troubled Debt*		*or-More and Still*
March 31, 2021	*Recorded ACL*		*Non-accrual*		*Restructurings*		*Accruing Interest*

Commercial real estate - non-owner occupied	$	212	$	10,305	$	—	$	—
Commercial real estate - owner occupied		699		1,054		—		—
Total commercial real estate		911		11,359		—		—

Commercial and industrial - term		363		363		15		1,151
Commercial and industrial - lines of credit		—		—		—		78
Total commercial and industrial		363		363		15		1,229

Residential real estate - owner occupied		810		810		—		148
Residential real estate - non-owner occupied		100		100		—		—
Total residential real estate		910		910		—		148

Construction and land development		—		—		—		—
Home equity lines of credit		274		274		—		—
Consumer		7		7		—		—
Leases		—		—		—		—
Credit cards - commercial		—		—		—		—
Total	$	2,465	$	12,913	$	15	$	1,377

	Non-accrual Loans						Past Due 90-Days-
(in thousands)	*With No*		*Total*		*Troubled Debt*		*or-More and Still*
December 31, 2020	*Recorded ACL*		*Non-accrual*		*Restructurings*		*Accruing Interest*

Commercial real estate - non-owner occupied	$	186	$	10,278	$	—	$	—
Commercial real estate - owner occupied		1,048		1,403		—		156
Total commercial real estate		1,234		11,681		—		156

Commercial and industrial - term		6		6		16		—
Commercial and industrial - lines of credit		88		88		—		—
Total commercial and industrial		94		94		16		—

Residential real estate - owner occupied		413		413		—		178
Residential real estate - non-owner occupied		101		101		—		301
Total residential real estate		514		514		—		479

Construction and land development		—		—		—		—
Home equity lines of credit		221		221		—		14
Consumer		4		4		—		—
Leases		—		—		—		—
Credit cards - commercial		—		—		—		—
Total	$	2,067	$	12,514	$	16	$	649

For the three month periods ended March 31, 2021 and 2020, the amount of accrued interest income previously recorded as revenue and subsequently reversed due to the change in accrual status was immaterial.

For the three month periods ended March 31, 2021 and 2020, no interest income was recognized on loans on non-accrual status.

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

(in thousands) March 31, 2021	Real Estate		Accounts Receivable / Equipment		Other		Total		ACL Allocation

Commercial real estate - non-owner occupied	$	10,305	$	-	$	-	$	10,305	$	3,037
Commercial real estate - owner occupied		1,054		-		-		1,054		13
Total commercial real estate		11,359		-		-		11,359		3,050

Commercial and industrial - term		327		51		-		378		15
Commercial and industrial - lines of credit		-		-		-		-		-
Total commercial and industrial		327		51		-		378		15

Residential real estate - owner occupied		810		-		-		810		-
Residential real estate - non-owner occupied		100		-		-		100		-
Total residential real estate		910		-		-		910		-

Construction and land development		-		-		-		-		-
Home equity lines of credit		274		-		-		274		-
Consumer		7		-		-		7		-
Leases		-		-		-		-		-
Credit cards - commercial		-		-		-		-		-
Total collateral dependent loans	$	12,877	$	51	$	-	$	12,928	$	3,065

(in thousands) December 31, 2020	Real Estate		Accounts Receivable / Equipment		Other		Total		ACL Allocation

Commercial real estate - non-owner occupied	$	10,278	$	-	$	-	$	10,278	$	3,037
Commercial real estate - owner occupied		1,403		-		-		1,403		13
Total commercial real estate		11,681		-		-		11,681		3,050

Commercial and industrial - term		16		7		-		23		16
Commercial and industrial - lines of credit		-		88		-		88		-
Total commercial and industrial		16		95		-		111		16

Residential real estate - owner occupied		413		-		-		413		-
Residential real estate - non-owner occupied		101		-		-		101		-
Total residential real estate		514		-		-		514		-

Construction and land development		-		-		-		-		-
Home equity lines of credit		221		-		-		221		-
Consumer		-		-		4		4		-
Leases		-		-		-		-		-
Credit cards - commercial		-		-		-		-		-
Total collateral dependent loans	$	12,432	$	95	$	4	$	12,531	$	3,066

There have been no significant changes to the types of collateral securing Bancorp’s collateral dependent loans.

The following tables present the aging of contractually past due loans by portfolio class:

(in thousands)			30-59 days		60-89 days		90 or more		Total		Total
March 31, 2021*	Current		Past Due		Past Due		Days Past Due		Past Due		Loans

Commercial real estate - non-owner occupied	$	875,452	$	374	$	-	$	697	$	1,071	$	876,523
Commercial real estate - owner occupied		526,300		347		155		514		1,016		527,316
Total commercial real estate		1,401,752		721		155		1,211		2,087		1,403,839

Commercial and industrial - term		507,642		118		517		1,290		1,925		509,567
Commercial and industrial - term - PPP		612,885		—		—		—		—		612,885
Commercial and industrial - lines of credit		260,055		74		—		77		151		260,206
Total commercial and industrial		1,380,582		192		517		1,367		2,076		1,382,658

Residential real estate - owner occupied		261,350		320		217		629		1,166		262,516
Residential real estate - non-owner occupied		136,257		23		—		100		123		136,380
Total residential real estate		397,607		343		217		729		1,289		398,896

Construction and land development		281,815		—		—		—		—		281,815
Home equity lines of credit		90,778		243		19		193		455		91,233
Consumer		50,994		61		—		3		64		51,058
Leases		14,115		—		—		—		—		14,115
Credit cards - commercial		11,519		23		—		—		23		11,542
Total	$	3,629,162	$	1,583	$	908	$	3,503	$	5,994	$	3,635,156

(in thousands)			30-59 days		60-89 days		90 or more		Total		Total
December 31, 2020*	Current		Past Due		Past Due		Days Past Due		Past Due		Loans

Commercial real estate - non-owner occupied	$	822,199	$	-	$	10,600	$	671	$	11,271	$	833,470
Commercial real estate - owner occupied		507,265		278		—		1,129		1,407		508,672
Total commercial real estate		1,329,464		278		10,600		1,800		12,678		1,342,142

Commercial and industrial - term		523,936		1,404		430		6		1,840		525,776
Commercial and industrial - term - PPP		550,186		—		—		—		—		550,186
Commercial and industrial - lines of credit		276,472		86		—		88		174		276,646
Total commercial and industrial		1,350,594		1,490		430		94		2,014		1,352,608

Residential real estate - owner occupied		237,902		585		247		457		1,289		239,191
Residential real estate - non-owner occupied		140,234		294		—		402		696		140,930
Total residential real estate		378,136		879		247		859		1,985		380,121

Construction and land development		291,764		—		—		—		—		291,764
Home equity lines of credit		95,206		7		139		14		160		95,366
Consumer		44,510		90		4		2		96		44,606
Leases		14,786		—		—		—		—		14,786
Credit cards - commercial		10,197		5		—		1		6		10,203
Total	$	3,514,657	$	2,749	$	11,420	$	2,770	$	16,939	$	3,531,596

* - Pursuant to the CARES Act, loan deferrals granted to borrowers experiencing business interruptions related to the pandemic were not classified as TDRs and not included in past due and/or non-performing loan statistics. As of March 31, 2021 and December 31, 2020, outstanding loan deferrals of $14 million and $37 million are reflected as current, respectively.

Loan Risk Ratings

Consistent with regulatory guidance, Bancorp categorizes loans into credit risk rating 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. Pass-rated loans include all risk-rated loans other than those classified as OAEM, substandard, and doubtful, which are defined below:

OAEM – Loans classified as OAEM have potential weaknesses requiring management's heightened attention. These potential weaknesses may result in deterioration of repayment prospects for the loan or of Bancorp's credit position at some future date.

Substandard – Loans classified as substandard are inadequately protected by the paying capacity of the obligor or of collateral pledged, if any. Loans so classified have well-defined weaknesses that jeopardize ultimate repayment of the debt. Default is a distinct possibility if the deficiencies are not corrected.

Substandard non-performing – Loans classified as substandard non-performing have all the characteristics of substandard loans and have been placed on non-accrual status or have been accounted for as TDRs. Loans are placed on non-accrual status when prospects for recovering both principal and accrued interest are considered doubtful or when a default of principal or interest has existed for 90 days or more.

Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below. Beginning in 2021, Bancorp has elected not to disclose revolving loans that have converted to term loans, as activity relating to this disclosure, which is included in the tables presented below as of December 31, 2020, is currently immaterial to Bancorp’s loan portfolio and is expected to be in the future. As of March 31, 2021, the risk rating of loans based on year of origination was as follows:

													Revolving
													loans
(in thousands)	Term Loans Amortized Cost Basis by Origination Year												amortized
March 31, 2021	2021		2020		2019		2018		2017		Prior		cost basis		Total

Commercial real estate - non-owner occupied:
Risk rating
Pass	$	68,649	$	299,229	$	117,679	$	106,861	$	96,267	$	125,113	$	13,948	$	827,746
OAEM		-		4,899		16,438		-		-		8,216		-		29,553
Substandard		5,166		-		1,826		-		-		1,497		430		8,919
Substandard non-performing		-		9,645		25		-		607		-		28		10,305
Doubtful		-		-		-		-		-		-		-		-
Total Commercial real estate non-owner occupied	$	73,815	$	313,773	$	135,968	$	106,861	$	96,874	$	134,826	$	14,406	$	876,523

Commercial real estate - owner occupied:
Risk rating
Pass	$	40,833	$	187,832	$	92,194	$	81,596	$	44,782	$	54,936	$	5,755	$	507,928
OAEM		-		72		6,466		1,440		779		840		-		9,597
Substandard		2,490		-		4,725		1,321		88		113		-		8,737
Substandard non-performing		-		541		-		15		32		466		-		1,054
Doubtful		-		-		-		-		-		-		-		-
Total Commercial real estate owner occupied	$	43,323	$	188,445	$	103,385	$	84,372	$	45,681	$	56,355	$	5,755	$	527,316

Commercial and industrial - term:
Risk rating
Pass	$	63,861	$	187,921	$	78,625	$	88,071	$	39,487	$	36,746	$	-	$	494,711
OAEM		-		-		2,216		5,479		-		283		-		7,978
Substandard		197		1,208		2,990		1,897		-		223		-		6,515
Substandard non-performing		-		-		233		50		80		-		-		363
Doubtful		-		-		-		-		-		-		-		-
Total Commercial and industrial - term	$	64,058	$	189,129	$	84,064	$	95,497	$	39,567	$	37,252	$	-	$	509,567

Commercial and industrial - PPP
Risk rating
Pass	$	233,225	$	379,660	$	-	$	-	$	-	$	-	$	-	$	612,885
OAEM		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Substandard non-performing		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total Commercial and industrial - PPP	$	233,225	$	379,660	$	-	$	-	$	-	$	-	$	-	$	612,885

(continued)

(continued)
													Revolving
													loans
(in thousands)	Term Loans Amortized Cost Basis by Origination Year												amortized
March 31, 2021	2021		2020		2019		2018		2017		Prior		cost basis		Total

Commercial and industrial - lines of credit
Risk rating
Pass	$	7,591	$	21,436	$	13,968	$	2,146	$	1,951	$	334	$	208,258	$	255,684
OAEM		-		-		78		-		-		-		1,140		1,218
Substandard		-		-		2,155		-		-		-		1,149		3,304
Substandard non-performing		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total Commercial and industrial - lines of credit	$	7,591	$	21,436	$	16,201	$	2,146	$	1,951	$	334	$	210,547	$	260,206

Residential real estate - owner occupied
Risk rating
Pass	$	40,475	$	91,657	$	32,914	$	20,965	$	17,129	$	58,445	$	-	$	261,585
OAEM		-		-		-		-		-		-		-		-
Substandard		8		-		-		-		113		-		-		121
Substandard non-performing		-		49		58		134		101		468		-		810
Doubtful		-		-		-		-		-		-		-		-
Total Residential real estate - owner occupied	$	40,483	$	91,706	$	32,972	$	21,099	$	17,343	$	58,913	$	-	$	262,516

Residential real estate - non-owner occupied
Risk rating
Pass	$	9,179	$	57,285	$	20,460	$	24,329	$	9,136	$	13,937	$	-	$	134,326
OAEM		91		134		1,591		138		-		-		-		1,954
Substandard		-		-		-		-		-		-		-		-
Substandard non-performing		-		-		-		26		-		74		-		100
Doubtful		-		-		-		-		-		-		-		-
Total Residential real estate - non-owner occupied	$	9,270	$	57,419	$	22,051	$	24,493	$	9,136	$	14,011	$	-	$	136,380

Construction and land development
Risk rating
Pass	$	33,972	$	129,252	$	77,587	$	20,318	$	14,161	$	1,448	$	4,828	$	281,566
OAEM		-		-		-		-		-		-		249		249
Substandard		-		-		-		-		-		-		-		-
Substandard non-performing		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total Construction and land development	$	33,972	$	129,252	$	77,587	$	20,318	$	14,161	$	1,448	$	5,077	$	281,815

Home equity lines of credit
Risk rating
Pass	$	-	$	-	$	-	$	-	$	-	$	-	$	90,959	$	90,959
OAEM		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Substandard non-performing		-		-		-		-		-		-		274		274
Doubtful		-		-		-		-		-		-		-		-
Total Home equity lines of credit	$	-	$	-	$	-	$	-	$	-	$	-	$	91,233	$	91,233

(continued)

(continued)
													Revolving
													loans
(in thousands)	Term Loans Amortized Cost Basis by Origination Year												amortized
March 31, 2021	2021		2020		2019		2018		2017		Prior		cost basis		Total

Consumer
Risk rating
Pass*	$	9,981	$	8,831	$	2,316	$	1,279	$	198	$	819	$	27,627	$	51,051
OAEM		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Substandard non-performing		-		-		-		4		-		3		-		7
Doubtful		-		-		-		-		-		-		-		-
Total Consumer	$	9,981	$	8,831	$	2,316	$	1,283	$	198	$	822	$	27,627	$	51,058

Leases
Risk rating
Pass	$	636	$	4,440	$	1,752	$	1,952	$	1,017	$	4,268	$	-	$	14,065
OAEM		-		-		-		-		-		50		-		50
Substandard		-		-		-		-		-		-		-		-
Substandard non-performing		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total Leases	$	636	$	4,440	$	1,752	$	1,952	$	1,017	$	4,318	$	-	$	14,115

Credit cards - commercial
Risk rating
Pass	$	-	$	-	$	-	$	-	$	-	$	-	$	11,542	$	11,542
OAEM		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Substandard non-performing		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total Credit cards	$	-	$	-	$	-	$	-	$	-	$	-	$	11,542	$	11,542

Total loans
Risk rating
Pass	$	508,402	$	1,367,543	$	437,495	$	347,517	$	224,128	$	296,046	$	362,917	$	3,544,048
OAEM		91		5,105		26,789		7,057		779		9,389		1,389		50,599
Substandard		7,861		1,208		11,696		3,218		201		1,833		1,579		27,596
Substandard non-performing		-		10,235		316		229		820		1,011		302		12,913
Doubtful		-		-		-		-		-		-		-		-
Total Loans	$	516,354	$	1,384,091	$	476,296	$	358,021	$	225,928	$	308,279	$	366,187	$	3,635,156

*Revolving loans include $492 thousand in overdrawn demand deposit balances.

As of December 31, 2020, the risk rating of loans based on year of origination was as follows:

													Revolving		Revolving
													loans		loans
(in thousands)	Term Loans Amortized Cost Basis by Origination Year												amortized		converted
December 31, 2020	2020		2019		2018		2017		2016		Prior		cost basis		to term		Total

Commercial real estate - non-owner occupied:
Risk rating
Pass	$	303,246	$	114,731	$	102,147	$	105,981	$	77,925	$	57,221	$	12,439	$	11,717	$	785,407
OAEM		3,867		16,587		-		-		7,707		615		-		-		28,776
Substandard		4,174		1,901		-		-		1,513		991		430		-		9,009
Substandard non-performing		9,644		-		-		609		-		-		-		25		10,278
Doubtful		-		-		-		-		-		-		-		-		-
Total Commercial real estate non-owner occupied	$	320,931	$	133,219	$	102,147	$	106,590	$	87,145	$	58,827	$	12,869	$	11,742	$	833,470

Commercial real estate - owner occupied:
Risk rating
Pass	$	183,666	$	94,462	$	83,592	$	47,506	$	39,638	$	30,533	$	7,693	$	2,418	$	489,508
OAEM		74		6,534		1,575		796		115		-		200		-		9,294
Substandard		1,408		5,360		1,335		247		117		-		-		-		8,467
Substandard non-performing		91		-		15		500		-		471		-		326		1,403
Doubtful		-		-		-		-		-		-		-		-		-
Total Commercial real estate owner occupied	$	185,239	$	106,356	$	86,517	$	49,049	$	39,870	$	31,004	$	7,893	$	2,744	$	508,672

Commercial and industrial - term:
Risk rating
Pass	$	215,629	$	94,563	$	104,871	$	42,929	$	36,016	$	8,412	$	-	$	7,690	$	510,110
OAEM		60		2,969		7,878		-		283		8		-		-		11,198
Substandard		1,229		2,521		-		91		163		74		-		384		4,462
Substandard non-performing		-		-		-		-		-		6		-		-		6
Doubtful		-		-		-		-		-		-		-		-		-
Total Commercial and industrial - term	$	216,918	$	100,053	$	112,749	$	43,020	$	36,462	$	8,500	$	-	$	8,074	$	525,776

Commercial and industrial - PPP
Risk rating
Pass	$	550,186	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	550,186
OAEM		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Substandard non-performing		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total Commercial and industrial - PPP	$	550,186	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	550,186

(continued)

(continued)
													Revolving		Revolving
													loans		loans
(in thousands)	Term Loans Amortized Cost Basis by Origination Year												amortized		converted
December 31, 2020	2020		2019		2018		2017		2016		Prior		cost basis		to term		Total

Commercial and industrial - lines of credit
Risk rating
Pass	$	26,351	$	14,405	$	2,229	$	1,990	$	290	$	85	$	223,172	$	-	$	268,522
OAEM		-		2,222		-		-		-		-		1,596		-		3,818
Substandard		-		-		-		-		-		-		4,218		-		4,218
Substandard non-performing		-		-		-		-		-		-		88		-		88
Doubtful		-		-		-		-		-		-		-		-		-
Total Commercial and industrial - lines of credit	$	26,351	$	16,627	$	2,229	$	1,990	$	290	$	85	$	229,074	$	-	$	276,646

Residential real estate - owner occupied
Risk rating
Pass	$	94,023	$	34,631	$	23,748	$	19,567	$	27,791	$	37,362	$	-	$	1,528	$	238,650
OAEM		-		-		-		-		-		-		-		-		-
Substandard		13		-		-		115		-		-		-		-		128
Substandard non-performing		49		58		-		100		38		73		-		95		413
Doubtful		-		-		-		-		-		-		-		-		-
Total Residential real estate - owner occupied	$	94,085	$	34,689	$	23,748	$	19,782	$	27,829	$	37,435	$	-	$	1,623	$	239,191

Residential real estate - non-owner occupied
Risk rating
Pass	$	63,537	$	22,422	$	25,466	$	10,587	$	9,609	$	6,451	$	-	$	788	$	138,860
OAEM		137		1,600		140		-		-		92		-		-		1,969
Substandard		-		-		-		-		-		-		-		-		-
Substandard non-performing		-		-		29		-		-		72		-		-		101
Doubtful		-		-		-		-		-		-		-		-		-
Total Residential real estate - non-owner occupied	$	63,674	$	24,022	$	25,635	$	10,587	$	9,609	$	6,615	$	-	$	788	$	140,930

Construction and land development
Risk rating
Pass	$	139,611	$	94,066	$	32,539	$	15,384	$	1,175	$	553	$	6,304	$	1,883	$	291,515
OAEM		-		-		-		-		-		-		249		-		249
Substandard		-		-		-		-		-		-		-		-		-
Substandard non-performing		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total Construction and land development	$	139,611	$	94,066	$	32,539	$	15,384	$	1,175	$	553	$	6,553	$	1,883	$	291,764

Home equity lines of credit
Risk rating
Pass	$	-	$	-	$	-	$	-	$	-	$	-	$	95,145	$	-	$	95,145
OAEM		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Substandard non-performing		-		-		-		-		-		-		221		-		221
Doubtful		-		-		-		-		-		-		-		-		-
Total Home equity lines of credit	$	-	$	-	$	-	$	-	$	-	$	-	$	95,366	$	-	$	95,366

(continued)

													Revolving		Revolving
													loans		loans
(in thousands)	Term Loans Amortized Cost Basis by Origination Year												amortized		converted
December 31, 2020	2020		2019		2018		2017		2016		Prior		cost basis		to term		Total

Consumer
Risk rating
Pass*	$	10,334	$	2,897	$	1,687	$	243	$	420	$	466	$	28,363	$	192	$	44,602
OAEM		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Substandard non-performing		-		-		-		-		2		-		2		-		4
Doubtful		-		-		-		-		-		-		-		-		-
Total Consumer	$	10,334	$	2,897	$	1,687	$	243	$	422	$	466	$	28,365	$	192	$	44,606

Leases
Risk rating
Pass	$	4,674	$	1,875	$	2,144	$	1,300	$	2,550	$	2,168	$	-	$	-	$	14,711
OAEM		-		-		-		-		69		-		-		-		69
Substandard		-		-		6		-		-		-		-		-		6
Substandard non-performing		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total Leases	$	4,674	$	1,875	$	2,150	$	1,300	$	2,619	$	2,168	$	-	$	-	$	14,786

Credit cards - commercial
Risk rating
Pass	$	-	$	-	$	-	$	-	$	-	$	-	$	10,203	$	-	$	10,203
OAEM		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Substandard non-performing		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total Credit cards	$	-	$	-	$	-	$	-	$	-	$	-	$	10,203	$	-	$	10,203

Total loans
Risk rating
Pass	$	1,591,257	$	474,052	$	378,423	$	245,487	$	195,414	$	143,251	$	383,319	$	26,216	$	3,437,419
OAEM		4,138		29,912		9,593		796		8,174		715		2,045		-		55,373
Substandard		6,824		9,782		1,341		453		1,793		1,065		4,648		384		26,290
Substandard non-performing		9,784		58		44		1,209		40		622		311		446		12,514
Doubtful		-		-		-		-		-		-		-		-		-
Total Loans	$	1,612,003	$	513,804	$	389,401	$	247,945	$	205,421	$	145,653	$	390,323	$	27,046	$	3,531,596

* - Revolving loans include $536 thousand in overdrawn demand deposit balances.

Bancorp considers the performance of the loan portfolio and its impact on the ACL. For certain loan classes, such as credit cards, credit quality is evaluated based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in commercial credit cards based on payment activity:

	March 31,		December 31,
(in thousands)	2021		2020

Credit cards - commercial
Performing	$	11,542	$	10,203
Non-performing		—		—
Total credit cards - commercial	$	11,542	$	10,203

In accordance with Section 4013 of the CARES Act and in response to requests from borrowers who experienced business or personal cash flow interruptions related to the pandemic, Bancorp extended payment deferrals for those affected borrowers. Depending on the demonstrated need of the customer, Bancorp deferred either the full loan payment or the principal-only portion of respective loan payments, typically for 90 or 180 days, for some borrowers directly impacted by the pandemic. Pursuant to the CARES Act, these loan deferrals were not classified as TDRs and not included in past due and/or non-performing loan statistics. As of March 31, 2021, outstanding loan deferrals totaled $14 million, representing 0.45% of the total loan portfolio (excluding PPP loans) compared to $37 million, or 1.24% of the total loan portfolio (excluding PPP loans) at December 31, 2020.

Troubled Debt Restructurings

Detail of outstanding TDRs included in total non-performing loans follows:

	March 31, 2021						December 31, 2020
			Specific		Additional				Specific		Additional
			reserve		commitment				reserve		commitment
(in thousands)	Balance		allocation		to lend		Balance		allocation		to lend

Commercial and industrial - term	$	15	$	15	$	—	$	16	$	16	$	—
Residential real estate		—		—		—		—		—		—
Total TDRs	$	15	$	15	$	—	$	16	$	16	$	—

During the three periods ended March 31, 2021 and 2020, there were no loans modified as TDRs and there were no payment defaults of existing TDRs within 12 months following the modification. Default is determined at 90 or more days past due, charge-off, or foreclosure.

At March 31, 2021 and December 31, 2020, Bancorp had $286,000 and $147,000, respectively, in residential real estate loans for which formal foreclosure proceedings were in process.