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Loans (Tables)
 3 Months Ended
Mar. 31, 2020
Receivables [Abstract]  
Schedule of Loans Receivable
Loans consist of the following:
 March 31, 2020December 31, 2019
(dollars in thousands)PCIAll other loans**Total% of Gross LoansPCIAll other loans**Total% of Gross Loans
Commercial real estate$1,730  $975,948  $977,678  65.61 %$1,738  $963,039  $964,777  66.34 %
Residential first mortgages—  170,795  170,795  11.46 %—  167,710  167,710  11.53 %
Residential rentals—  133,016  133,016  8.93 %295  123,306  123,601  8.50 %
Construction and land development—  38,627  38,627  2.59 %—  34,133  34,133  2.35 %
Home equity and second mortgages395  35,542  35,937  2.41 %391  35,707  36,098  2.48 %
Commercial loans—  70,971  70,971  4.76 %—  63,102  63,102  4.34 %
Consumer loans—  1,134  1,134  0.08 %—  1,104  1,104  0.08 %
Commercial equipment—  61,931  61,931  4.16 %—  63,647  63,647  4.38 %
Gross loans2,125  1,487,964  1,490,089  100.00 %2,424  1,451,748  1,454,172  100.00 %
Net deferred costs—  2,059  2,059  0.14 %—  1,879  1,879  0.13 %
Total loans, net of deferred costs2,125  1,490,023  1,492,148  2,424  1,453,627  1,456,051  
Less: allowance for loan losses—  (15,061) (15,061) (1.01)%—  (10,942) (10,942) (0.75)%
Net loans$2,125  $1,474,962  $1,477,087  $2,424  $1,442,685  $1,445,109  
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**   All other loans include acquired Non-PCI pools.
Non-accrual loans
Non-accrual and Aging Analysis of Current and Past Due Loans
Non-accrual loans as of March 31, 2020 and December 31, 2019 were as follows:
 March 31, 2020
(dollars in thousands)Non-accrual Delinquent LoansNumber of LoansNon-accrual Current LoansNumber of LoansTotal Non-accrual LoansTotal Number of Loans
Commercial real estate$10,970  12  $1,126  3  $12,096  15  
Residential first mortgages196  1  —  —  196  1  
Residential rentals239  1  46  1  285  2  
Home equity and second mortgages153  3  302  3  455  6  
Commercial loans2,906  3  —  —  2,906  3  
Commercial equipment390  5  21  2  411  7  
 $14,854  25  $1,495  9  $16,349  34  

 December 31, 2019
(dollars in thousands)Non-accrual Delinquent LoansNumber of LoansNon-accrual Current LoansNumber of LoansTotal Non-accrual LoansTotal Number of Loans
Commercial real estate$10,562  11  $1,687  5  $12,249  16  
Residential first mortgages—  —  830  3  830  3  
Residential rentals—  —  937  5  937  5  
Home equity and second mortgages177  3  271  3  448  6  
Commercial loans1,807  2  1,320  1  3,127  3  
Commercial equipment241  5  25  1  266  6  
$12,787  21  $5,070  18  $17,857  39  
Past Due Financing Receivables
Past due and PCI loans as of March 31, 2020 and December 31, 2019 were as follows:
 March 31, 2020
(dollars in thousands)31‑60 Days61‑89 Days90 or Greater DaysTotal Past DuePCI LoansCurrentTotal Loan Receivables
Commercial real estate$6,028  $—  $10,533  $16,561  $1,730  $959,387  $977,678  
Residential first mortgages330  —  —  330  —  170,465  170,795  
Residential rentals240  —  —  240  —  132,776  133,016  
Construction and land dev.—  —  —  —  —  38,627  38,627  
Home equity and second mtg.99  —  153  252  395  35,290  35,937  
Commercial loans1,148  —  1,807  2,955  —  68,016  70,971  
Consumer loans—  —  —  —  —  1,134  1,134  
Commercial equipment64  12  384  460  —  61,471  61,931  
Total$7,909  $12  $12,877  $20,798  $2,125  $1,467,166  $1,490,089  

 December 31, 2019
(dollars in thousands)31‑60 Days61‑89 Days90 or Greater DaysTotal Past DuePCI LoansCurrentTotal Loan Receivables
Commercial real estate$—  $217  $10,563  $10,780  $1,738  $952,259  $964,777  
Residential first mortgages—  —  —  —  —  167,710  167,710  
Residential rentals—  —  —  —  295  123,306  123,601  
Construction and land dev.—  —  —  —  —  34,133  34,133  
Home equity and second mtg.98  23  177  298  391  35,409  36,098  
Commercial loans—  —  1,807  1,807  —  61,295  63,102  
Consumer loans—  —  —  —  —  1,104  1,104  
Commercial equipment52  159  231  442  —  63,205  63,647  
Total$150  $399  $12,778  $13,327  $2,424  $1,438,421  $1,454,172  
Impaired Loans, Including TDRs
Impaired loans, including TDRs, at March 31, 2020 and 2019 and at December 31, 2019 were as follows:
 March 31, 2020
(dollars in thousands)Unpaid Contractual Principal BalanceRecorded Investment With No AllowanceRecorded Investment With AllowanceTotal Recorded InvestmentRelated AllowanceQuarter Average Recorded InvestmentQuarter Interest Income RecognizedYTD Average Recorded InvestmentYTD Interest Income Recognized
Commercial real estate$22,527  $18,250  $4,064  $22,314  $367  $22,347  $140  $22,347  $140  
Residential first mortgages1,738  1,738  —  1,738  —  1,744  16  1,744  16  
Residential rentals656  656  —  656  —  658  6  658  6  
Home equity and second mtg.530  519  —  519  —  519  5  519  5  
Commercial loans2,906  1,807  1,099  2,906  932  2,951  —  2,951  —  
Commercial equipment949  576  350  926  350  939  15  939  15  
Total$29,306  $23,546  $5,513  $29,059  $1,649  $29,158  $182  $29,158  $182  

 March 31, 2019
(dollars in thousands)Unpaid Contractual Principal BalanceRecorded Investment With No AllowanceRecorded Investment With AllowanceTotal Recorded InvestmentRelated AllowanceQuarter Average Recorded InvestmentQuarter Interest Income RecognizedYTD Average Recorded InvestmentYTD Interest Income Recognized
Commercial real estate$22,320  $20,019  $2,274  $22,293  $208  $22,373  $184  $22,373  $184  
Residential first mortgages2,507  2,505  —  2,505  —  2,518  27  2,518  27  
Residential rentals1,773  1,768  —  1,768  —  1,779  21  1,779  21  
Construction and land dev.729  729  —  729  —  729  11  729  11  
Home equity and second mtg.257  250  —  250  —  250  2  250  2  
Commercial loans2,672  1,834  827  2,661  700  2,669  27  2,669  27  
Commercial equipment390  199  174  373  150  381  2  381  2  
Total$30,648  $27,304  $3,275  $30,579  $1,058  $30,699  $274  $30,699  $274  
TDRs, Included in Impaired Loans Schedule
TDRs included in the impaired loan schedules above, as of March 31, 2020 and December 31, 2019 were as follows:
 March 31, 2020December 31, 2019
(dollars in thousands)Dollars Number of LoansDollarsNumber of Loans
Commercial real estate$1,418  3  $1,420  3  
Residential first mortgages63  1  64  1  
Commercial equipment554  4  565  4  
Total TDRs$2,035  8  $2,049  8  
Less: TDRs included in non-accrual loans(1,394) (3) (1,399) (3) 
Total accrual TDR loans$641  5  $650  5  
Allowance for Credit Losses on Financing Receivables
The following tables detail activity in the allowance for loan losses at and for the three months ended March 31, 2020 and 2019, respectively. An allocation of the allowance to one category of loans does not prevent the Company from using that allowance to absorb losses in a different category. There is no allowance for loan loss on the PCI portfolios. A more detailed rollforward schedule will be presented if a PCI allowance is required.
Three Months EndedMarch 31, 2020
(dollars in thousands)Beginning BalanceCharge-offsRecoveriesProvisionsEnding Balance
Commercial real estate$7,398  $—  $—  $1,685  $9,083  
Residential first mortgages464  —  —  398  862  
Residential rentals397  —  —  305  702  
Construction and land development273  —  —  163  436  
Home equity and second mortgages149  —  1  108  258  
Commercial loans1,086  —  5  1,175  2,266  
Consumer loans10  —  —  5  15  
Commercial equipment1,165  —  13  261  1,439  
 $10,942  $—  $19  $4,100  $15,061  

Three Months EndedMarch 31, 2019
(dollars in thousands)Beginning BalanceCharge-offsRecoveriesProvisionsEnding Balance
Commercial real estate$6,882  $—  $2  $(142) $6,742  
Residential first mortgages755  —  —  (33) 722  
Residential rentals498  (53) 46  (29) 462  
Construction and land development310  —  —  (162) 148  
Home equity and second mortgages133  —  2  (3) 132  
Commercial loans1,482  —  5  (81) 1,406  
Consumer loans6  (4) 1  5  8  
Commercial equipment910  (685) 56  945  1,226  
$10,976  $(742) $112  $500  $10,846  
The following tables detail loan receivable and allowance balances disaggregated on the basis of the Company’s impairment methodology at March 31, 2020 and 2019 and December 31, 2019.
 March 31, 2020December 31, 2019March 31, 2019
(dollars in thousands)Ending balance: individually evaluated for impairmentEnding balance: collectively evaluated for impairmentPurchase Credit ImpairedTotalEnding balance: individually evaluated for impairmentEnding balance: collectively evaluated for impairmentPurchase Credit ImpairedTotalEnding balance: individually evaluated for impairmentEnding balance: collectively evaluated for impairmentPurchase Credit ImpairedTotal
Loan Receivables:
Commercial real estate$22,314  $953,634  $1,730  $977,678  $20,707  $942,332  $1,738  $964,777  $22,293  $867,122  $1,750  $891,165  
Residential first mortgages1,738  169,057  —  170,795  1,917  165,793  —  167,710  2,505  153,680  468  156,653  
Residential rentals656  132,360  —  133,016  937  122,369  295  123,601  1,768  121,864  886  124,518  
Construction and land development—  38,627  —  38,627  —  34,133  —  34,133  729  32,069  —  32,798  
Home equity and second mortgages519  35,023  395  35,937  510  35,197  391  36,098  250  36,373  123  36,746  
Commercial loans2,906  68,065  —  70,971  3,127  59,975  —  63,102  2,661  68,064  —  70,725  
Consumer loans—  1,134  —  1,134  —  1,104  —  1,104  —  851  —  851  
Commercial equipment926  61,005  —  61,931  788  62,859  —  63,647  373  49,347  —  49,720  
$29,059  $1,458,905  $2,125  $1,490,089  $27,986  $1,423,762  $2,424  $1,454,172  $30,579  $1,329,370  $3,227  $1,363,176  
Allowance for loan losses:
Commercial real estate$367  $8,716  $—  $9,083  $417  $6,981  $—  $7,398  $208  $6,534  $—  $6,742  
Residential first mortgages—  862  —  862  —  464  —  464  —  722  —  722  
Residential rentals—  702  —  702  —  397  —  397  —  462  —  462  
Construction and land development—  436  —  436  —  273  —  273  —  148  —  148  
Home equity and second mortgages—  258  —  258  —  149  —  149  —  132  —  132  
Commercial loans932  1,334  —  2,266  210  876  —  1,086  700  706  —  1,406  
Consumer loans—  15  —  15  —  10  —  10  —  8  —  8  
Commercial equipment350  1,089  —  1,439  201  964  —  1,165  150  1,076  —  1,226  
$1,649  $13,412  $—  $15,061  $828  $10,114  $—  $10,942  $1,058  $9,788  $—  $10,846  
Credit Quality Indicators
Credit quality indicators as of March 31, 2020 and December 31, 2019 were as follows:
Credit Risk Profile by Internally Assigned Grade
 Commercial Real EstateConstruction and Land Dev.Residential Rentals
(dollars in thousands)3/31/202012/31/20193/31/202012/31/20193/31/202012/31/2019
Unrated$126,211  $102,695  $2,785  $2,075  $39,494  $38,139  
Pass828,041  840,403  35,842  32,058  93,152  84,811  
Special mention202  —  —  —  370  —  
Substandard23,224  21,679  —  —  —  651  
Doubtful—  —  —  —  —  —  
Loss—  —  —  —  —  —  
Total$977,678  $964,777  $38,627  $34,133  $133,016  $123,601  

 Commercial LoansCommercial EquipmentTotal Commercial Portfolios
(dollars in thousands)3/31/202012/31/20193/31/202012/31/20193/31/202012/31/2019
Unrated$17,127  $16,754  $25,633  $26,045  $211,250  $185,708  
Pass50,938  43,221  35,948  37,399  1,043,921  1,037,892  
Special mention—  —  —  —  572  —  
Substandard2,906  3,127  350  203  26,480  25,660  
Doubtful—  —  —  —  —  —  
Loss—  —  —  —  —  —  
Total$70,971  $63,102  $61,931  $63,647  $1,282,223  $1,249,260  

Non-Commercial Portfolios **Total All Portfolios
(dollars in thousands)3/31/202012/31/20193/31/202012/31/2019
Unrated$170,369  $164,991  $381,619  $350,699  
Pass36,353  38,718  1,080,274  1,076,610  
Special mention473  —  1,045  —  
Substandard671  1,203  27,151  26,863  
Doubtful—  —  —  —  
Loss—  —  —  —  
Total$207,866  $204,912  $1,490,089  $1,454,172  
** Non-commercial portfolios are generally evaluated based on payment activity but may be risk graded if part of a larger commercial relationship or are credit impaired (e.g. non-accrual loans, TDRs).
Credit Risk Profile Based on Payment Activity
 Residential First MortgagesHome Equity and Second Mtg.Consumer Loans
(dollars in thousands)3/31/202012/31/20193/31/202012/31/20193/31/202012/31/2019
Performing$170,795  $167,710  $35,784  $35,921  $1,134  $1,104  
Nonperforming—  —  153  177  —  —  
Total$170,795  $167,710  $35,937  $36,098  $1,134  $1,104  
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Table
A summary of changes in the accretable yield for PCI loans for the three months ended March 31, 2020 and 2019 and the year ended December 31, 2019 follows:
 Three Months Ended March 31,Year Ended
(dollars in thousands)20202019December 31, 2019
Accretable yield, beginning of period$677  $733  $733  
Additions—  —  —  
Accretion(139) (54) (354) 
Reclassification from (to) nonaccretable difference—  —  330  
Other changes, net—  —  (32) 
Accretable yield, end of period$538  $679  $677  
Summary Of Acquired And Non Acquired Loans Table
The following is a summary of acquired and non-acquired loans as of March 31, 2020 and December 31, 2019:
BY ACQUIRED AND NON-ACQUIREDMarch 31, 2020%December 31, 2019%
Acquired loans - performing$69,205  4.65 %$74,654  5.13 %
Acquired loans - purchase credit impaired ("PCI")2,125  0.14 %2,424  0.17 %
Total acquired loans71,330  4.79 %77,078  5.30 %
Non-acquired loans**1,418,759  95.21 %1,377,094  94.70 %
Gross loans1,490,089  1,454,172  
Net deferred costs (fees)2,059  0.14 %1,879  0.13 %
Total loans, net of deferred costs$1,492,148  $1,456,051  
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** Non-acquired loans include loans transferred from acquired pools following release of acquisition accounting FMV adjustments.