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Loans (Tables)
 6 Months Ended
Jun. 30, 2020
Receivables [Abstract]  
Schedule of Loans Receivable
Loans consist of the following:
 June 30, 2020December 31, 2019
(dollars in thousands)Total% of Gross LoansTotal% of Gross Loans
Portfolio Loans:
Commercial real estate$996,111  66.73 %$964,777  66.34 %
Residential first mortgages165,670  11.10 %167,710  11.53 %
Residential rentals132,590  8.88 %123,601  8.50 %
Construction and land development37,580  2.52 %34,133  2.35 %
Home equity and second mortgages33,873  2.27 %36,098  2.48 %
Commercial loans63,249  4.24 %63,102  4.34 %
Consumer loans1,117  0.07 %1,104  0.08 %
Commercial equipment62,555  4.19 %63,647  4.38 %
Gross portfolio loans1,492,745  100.00 %1,454,172  100.00 %
Less:
Net deferred costs2,072  0.14 %1,879  0.13 %
Allowance for loan losses(16,319) (1.09)%(10,942) (0.75)%
(14,247) (9,063) 
Net portfolio loans$1,478,498  $1,445,109  
U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans$129,384  $—  
Net deferred fees(3,746) —  
Net SBA PPP Loans$125,638  $—  
Total net loans$1,604,136  $1,445,109  
Gross Loans$1,622,129  $1,454,172  
Non-accrual loans Non-accrual and Aging Analysis of Current and Past Due Loans
Non-accrual loans as of June 30, 2020 and December 31, 2019 were as follows:
 June 30, 2020
(dollars in thousands)Non-accrual Delinquent LoansNumber of LoansNon-accrual Current LoansNumber of LoansTotal Non-accrual LoansTotal Number of Loans
Commercial real estate$18,083  18  $1,878  5  $19,961  23  
Residential first mortgages—  —  194  1  194  1  
Residential rentals—  —  281  2  281  2  
Home equity and second mortgages132  3  451  3  583  6  
Commercial loans1,807  2  —  —  1,807  2  
Consumer loans5  1  —  —  5  1  
Commercial equipment50  2  15  2  65  4  
 $20,077  26  $2,819  13  $22,896  39  

 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 June 30, 2020 and December 31, 2019 were as follows:
 June 30, 2020
(dollars in thousands)31-60 Days61-89 Days90 or Greater DaysTotal Past DuePCI LoansCurrentTotal Loan Receivables
Commercial real estate$400  $4,872  $18,083  $23,355  $1,593  $971,163  $996,111  
Residential first mortgages51  —  —  51  —  165,619  165,670  
Residential rentals—  —  —  —  —  132,590  132,590  
Construction and land dev.—  220  —  220  —  37,360  37,580  
Home equity and second mtg.82  103  127  312  400  33,161  33,873  
Commercial loans—  —  1,807  1,807  —  61,442  63,249  
Consumer loans1  —  5  6  —  1,111  1,117  
Commercial equipment7  107  50  164  —  62,391  62,555  
Total portfolio loans$541  $5,302  $20,072  $25,915  $1,993  $1,464,837  $1,492,745  
U.S. SBA PPP loans$—  $—  $—  $—  $—  $129,384  $129,384  

 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 portfolio loans$150  $399  $12,778  $13,327  $2,424  $1,438,421  $1,454,172  
Impaired Loans, Including TDRs
Impaired loans, including TDRs, at June 30, 2020 and 2019 and at December 31, 2019 were as follows:
 June 30, 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$21,360  $20,315  $842  $21,157  $60  $21,191  $88  $21,243  $238  
Residential first mortgages1,710  1,710  —  1,710  —  1,717  13  1,731  29  
Residential rentals643  643  —  643  —  648  12  653  18  
Home equity and second mtg.656  645  —  645  —  646  10  647  12  
Commercial loans1,807  1,807  —  1,807  —  1,807  —  1,807  —  
Consumer loans5  5  —  5  —  5  —  5  —  
Commercial equipment548  489  44  533  44  539  7  544  21  
Total$26,729  $25,614  $886  $26,500  $104  $26,553  $130  $26,630  $318  
 June 30, 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$20,933  $18,512  $2,406  $20,918  $289  $20,975  $214  $21,075  $410  
Residential first mortgages2,124  2,123  —  2,123  —  2,129  20  2,139  41  
Residential rentals971  971  —  971  —  978  17  985  30  
Home equity and second mtg.482  471  —  471  —  476  5  461  9  
Commercial loans2,638  1,807  819  2,626  700  2,629  27  2,649  54  
Commercial equipment367  131  218  349  192  357  2  369  4  
Total$27,515  $24,015  $3,443  $27,458  $1,181  $27,544  $285  $27,678  $548  

 December 31, 2019
(dollars in thousands)Unpaid Contractual Principal BalanceRecorded Investment With No AllowanceRecorded Investment With AllowanceTotal Recorded InvestmentRelated AllowanceYTD Average Recorded InvestmentYTD Interest Income Recognized
Commercial real estate$20,914  $15,919  $4,788  $20,707  $417  $21,035  $813  
Residential first mortgages1,921  1,917  —  1,917  —  1,962  86  
Residential rentals941  937  —  937  —  967  56  
Home equity and second mtg.524  510  —  510  —  519  23  
Commercial loans3,127  1,807  1,320  3,127  210  3,284  152  
Commercial equipment808  585  203  788  201  826  35  
Total$28,235  $21,675  $6,311  $27,986  $828  $28,593  $1,165  
TDRs, Included in Impaired Loans Schedule
TDRs included in the impaired loan schedules above, as of June 30, 2020 and December 31, 2019 were as follows:
 June 30, 2020December 31, 2019
(dollars in thousands)Dollars Number of LoansDollarsNumber of Loans
Commercial real estate$1,408  3  $1,420  3  
Residential first mortgages257  2  64  1  
Commercial equipment524  3  565  4  
Total TDRs$2,189  8  $2,049  8  
Less: TDRs included in non-accrual loans(1,596) (4) (1,399) (3) 
Total accrual TDR loans$593  4  $650  5  
Allowance for Credit Losses on Financing Receivables The following tables detail activity in the ALLL at and for the three and six months ended June 30, 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.
Three Months EndedJune 30, 2020
(dollars in thousands)Beginning BalanceCharge-offsRecoveriesProvisionsEnding Balance
Commercial real estate$9,083  $(929) $—  $3,114  $11,268  
Residential first mortgages862  —  —  23  885  
Residential rentals702  —  —  357  1,059  
Construction and land development436  —  —  (8) 428  
Home equity and second mortgages258  (25) —  26  259  
Commercial loans2,266  (1,026) 5  (83) 1,162  
Consumer loans15  —  —  —  15  
Commercial equipment1,439  (282) 15  71  1,243  
 $15,061  $(2,262) $20  $3,500  $16,319  
Six Months EndedJune 30, 2020
(dollars in thousands)Beginning BalanceCharge-offsRecoveriesProvisionsEnding Balance
Commercial real estate$7,398  $(929) $—  $4,799  $11,268  
Residential first mortgages464  —  —  421  885  
Residential rentals397  —  —  662  1,059  
Construction and land development273  —  —  155  428  
Home equity and second mortgages149  (25) 1  134  259  
Commercial loans1,086  (1,026) 10  1,092  1,162  
Consumer loans10  —  —  5  15  
Commercial equipment1,165  (282) 28  332  1,243  
$10,942  $(2,262) $39  $7,600  $16,319  
Three Months EndedJune 30, 2019
(dollars in thousands)Beginning BalanceCharge-offsRecoveriesProvisionsEnding Balance
Commercial real estate$6,742  $(4) $13  $258  $7,009  
Residential first mortgages722  —  —  (13) 709  
Residential rentals462  —  —  (4) 458  
Construction and land development148  (329) —  427  246  
Home equity and second mortgages132  —  2  (3) 131  
Commercial loans1,406  —  5  (9) 1,402  
Consumer loans8  —  1  —  9  
Commercial equipment1,226  —  9  (281) 954  
$10,846  $(333) $30  $375  $10,918  
Six Months EndedJune 30, 2019
(dollars in thousands)Beginning BalanceCharge-offsRecoveriesProvisionsEnding Balance
Commercial real estate$6,882  $(4) $15  $116  $7,009  
Residential first mortgages755  —  —  (46) 709  
Residential rentals498  (53) 46  (33) 458  
Construction and land development310  (329) —  265  246  
Home equity and second mortgages133  —  4  (6) 131  
Commercial loans1,482  —  10  (90) 1,402  
Consumer loans6  (4) 2  5  9  
Commercial equipment910  (685) 65  664  954  
$10,976  $(1,075) $142  $875  $10,918  
The following tables detail loan receivable and allowance balances disaggregated on the basis of the Company’s impairment methodology at June 30, 2020 and 2019 and December 31, 2019.
 June 30, 2020December 31, 2019June 30, 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$21,157  $973,361  $1,593  $996,111  $20,707  $942,332  $1,738  $964,777  $20,918  $895,305  $1,725  $917,948  
Residential first mortgages1,710  163,960  —  165,670  1,917  165,793  —  167,710  2,123  154,096  451  156,670  
Residential rentals643  131,947  —  132,590  937  122,369  295  123,601  971  120,692  327  121,990  
Construction and land development—  37,580  —  37,580  —  34,133  —  34,133  —  35,662  —  35,662  
Home equity and second mortgages645  32,828  400  33,873  510  35,197  391  36,098  471  35,126  269  35,866  
Commercial loans1,807  61,442  —  63,249  3,127  59,975  —  63,102  2,626  64,991  —  67,617  
Consumer loans5  1,112  —  1,117  —  1,104  —  1,104  —  967  —  967  
Commercial equipment533  62,022  —  62,555  788  62,859  —  63,647  349  50,117  —  50,466  
$26,500  $1,464,252  $1,993  $1,492,745  $27,986  $1,423,762  $2,424  $1,454,172  $27,458  $1,356,956  $2,772  $1,387,186  
Allowance for loan losses:
Commercial real estate$60  $11,208  $—  $11,268  $417  $6,981  $—  $7,398  $289  $6,720  $—  $7,009  
Residential first mortgages—  885  —  885  —  464  —  464  —  709  —  709  
Residential rentals—  1,059  —  1,059  —  397  —  397  —  458  —  458  
Construction and land development—  428  —  428  —  273  —  273  —  246  —  246  
Home equity and second mortgages—  259  —  259  —  149  —  149  —  131  —  131  
Commercial loans—  1,162  —  1,162  210  876  —  1,086  700  702  —  1,402  
Consumer loans—  15  —  15  —  10  —  10  —  9  —  9  
Commercial equipment44  1,199  —  1,243  201  964  —  1,165  192  762  —  954  
$104  $16,215  $—  $16,319  $828  $10,114  $—  $10,942  $1,181  $9,737  $—  $10,918  
Credit Quality Indicators
Credit quality indicators as of June 30, 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)6/30/202012/31/20196/30/202012/31/20196/30/202012/31/2019
Unrated$150,661  $102,695  $1,950  $2,075  $47,992  $38,139  
Pass826,315  840,403  35,630  32,058  84,236  84,811  
Special mention197  —  —  —  362  —  
Substandard18,938  21,679  —  —  —  651  
Doubtful—  —  —  —  —  —  
Loss—  —  —  —  —  —  
Total$996,111  $964,777  $37,580  $34,133  $132,590  $123,601  

 Commercial LoansCommercial EquipmentTotal Commercial Portfolios
(dollars in thousands)6/30/202012/31/20196/30/202012/31/20196/30/202012/31/2019
Unrated$16,018  $16,754  $26,153  $26,045  $242,774  $185,708  
Pass45,424  43,221  36,358  37,399  1,027,963  1,037,892  
Special mention—  —  —  —  559  —  
Substandard1,807  3,127  44  203  20,789  25,660  
Doubtful—  —  —  —  —  —  
Loss—  —  —  —  —  —  
Total$63,249  $63,102  $62,555  $63,647  $1,292,085  $1,249,260  

Non-Commercial Portfolios **U.S. SBA PPP LoansTotal All Portfolios
(dollars in thousands)6/30/202012/31/20196/30/202012/31/20196/30/202012/31/2019
Unrated$166,782  $164,991  $129,384  $—  $538,940  $350,699  
Pass32,780  38,718  —  —  1,060,743  1,076,610  
Special mention467  —  —  —  1,026  —  
Substandard631  1,203  —  —  21,420  26,863  
Doubtful—  —  —  —  —  —  
Loss—  —  —  —  —  —  
Total$200,660  $204,912  $129,384  $—  $1,622,129  $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)6/30/202012/31/20196/30/202012/31/20196/30/202012/31/2019
Performing$165,670  $167,710  $33,746  $35,921  $1,112  $1,104  
Nonperforming—  —  127  177  5  —  
Total$165,670  $167,710  $33,873  $36,098  $1,117  $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 and six months ended June 30, 2020 and 2019 and the year ended December 31, 2019 follows:
 Three Months Ended June 30,Six Months Ended June 30,
(dollars in thousands)2020201920202019
Accretable yield, beginning of period$539  $680  $677  $733  
Additions—  —  —  —  
Accretion(1) (68) (139) (122) 
Reclassification from (to) nonaccretable difference24  156  24  156  
Other changes, net(148) 11  (148) 12  
Accretable yield, end of period$414  $779  $414  $779  
Summary Of Acquired And Non Acquired Loans Table
The following is a summary of acquired and non-acquired loans as of June 30, 2020 and December 31, 2019:
BY ACQUIRED AND NON-ACQUIREDJune 30, 2020%December 31, 2019%
Acquired loans - performing$65,087  4.01 %$74,654  5.13 %
Acquired loans - purchase credit impaired ("PCI")1,993  0.12 %2,424  0.17 %
Total acquired loans67,080  4.14 %77,078  5.30 %
U.S. SBA PPP loans129,384  7.98 %—  — %
Non-acquired loans**1,425,665  87.89 %1,377,094  94.70 %
Gross loans1,622,129  1,454,172  
Net deferred costs (fees)(1,674) (0.10)%1,879  0.13 %
Total loans, net of deferred costs$1,620,455  $1,456,051  
______________________________
**Non-acquired loans include loans transferred from acquired pools following release of acquisition accounting FMV adjustments.