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Loans (Tables)
 12 Months Ended
Dec. 31, 2020
Receivables [Abstract]  
Schedule of Loans Receivable
Loans consist of the following:
December 31, 2020December 31, 2019
(dollars in thousands)Total% of Gross Portfolio LoansTotal% of Gross Portfolio Loans
Portfolio Loans:
Commercial real estate$1,049,147 69.75 %$964,777 66.34 %
Residential first mortgages133,779 8.89 %167,710 11.53 %
Residential rentals139,059 9.24 %123,601 8.50 %
Construction and land development37,520 2.49 %34,133 2.35 %
Home equity and second mortgages29,129 1.94 %36,098 2.48 %
Commercial loans52,921 3.52 %63,102 4.34 %
Consumer loans1,027 0.07 %1,104 0.08 %
Commercial equipment61,693 4.10 %63,647 4.38 %
Gross portfolio loans1,504,275 100.00 %1,454,172 100.00 %
Less:
Net deferred costs1,264 0.08 %1,879 0.13 %
Allowance for loan losses(19,424)(1.29)%(10,942)(0.75)%
(18,160)(9,063)
Net portfolio loans$1,486,115 $1,445,109 
U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans$110,320 $— 
Net deferred fees(2,360)— 
Net SBA PPP Loans$107,960 $— 
Total Net Loans$1,594,075 $1,445,109 
Gross Loans$1,614,595 $1,454,172 
Non-accrual loans
Non-accrual loans as of December 31, 2020 and 2019 were as follows:
(dollars in thousands)
December 31, 2020
Non- accrual Delinquent Loans
Number of Loans
Non-accrual Current Loans
Number of Loans
Total Non-accrual Loans
Total Number of Loans
Commercial real estate
$11,428 9 $5,184 9 $16,612 18 
Residential first mortgages
335 2 459 2 794 4 
Residential rentals
— — 275 2 275 2 
Home equity and second mortgages
202 2 293 1 495 3 
Commercial equipment
— — 46 3 46 3 
$11,965 13 $6,257 17 $18,222 30 
(dollars in thousands)
December 31, 2019
Non- accrual Delinquent Loans
Number of Loans
Non-accrual Current Loans
Number of Loans
Total Non-accrual Loans
Total 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 mortgages
177 3 271 3 448 6 
Commercial loans
1,807 2 1,320 1 3,127 3 
Commercial equipment
241 5 25 1 266 6 
$12,787 21 $5,070 18 $17,857 39 
Past Due Financing Receivables An analysis of past due loans as of December 31, 2020 and 2019 was as follows:
(dollars in thousands)December 31, 2020
31-60 Days61-89 Days90 or Greater DaysTotal Past DuePCI LoansCurrentTotal Loan Receivables
Commercial real estate$— $— $11,428 $11,428 $1,572 $1,036,147 $1,049,147 
Residential first mortgages— — 335 335 — 133,444 133,779 
Residential rentals— — — — — 139,059 139,059 
Construction and land dev.— — — — — 37,520 37,520 
Home equity and second mtg.167 — 202 369 406 28,354 29,129 
Commercial loans— — — — — 52,921 52,921 
Consumer loans8 — — 8 — 1,019 1,027 
Commercial equipment— 4 — 4 — 61,689 61,693 
Total portfolio loans$175 $4 $11,965 $12,144 $1,978 $1,490,153 $1,504,275 
U.S. SBA PPP loans $— $— $— $— $— $110,320 $110,320 

(dollars in thousands)December 31, 2019
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 December 31, 2020 and 2019 were as follows:
(dollars in thousands)December 31, 2020
Unpaid Contractual Principal BalanceRecorded Investment With No AllowanceRecorded Investment With AllowanceTotal Recorded InvestmentRelated AllowanceYTD Average Recorded InvestmentYTD Interest Income Recognized
Commercial real estate$17,952 $11,915 $5,799 $17,714 $1,316 $17,729 $361 
Residential first mortgages2,001 1,989 — 1,989 — 2,043 70 
Residential rentals626 625 — 625 — 643 32 
Home equity and second mtg.568 555 — 555 — 559 15 
Commercial equipment527 472 40 512 40 531 30 
Total$21,674 $15,556 $5,839 $21,395 $1,356 $21,505 $508 
(dollars in thousands)December 31, 2019
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 December 31, 2020 and 2019 were as follows:
(dollars in thousands)
December 31, 2020December 31, 2019
Dollars
Number of Loans
Dollars
Number of Loans
Commercial real estate
$1,376 2 $1,420 3 
Residential first mortgages
247 2 64 1 
Commercial equipment
471 2 565 4 
Total TDRs
$2,094 6 $2,049 8 
Less: TDRs included in non-accrual loans
(1,522)(3)(1,399)(3)
Total performing accrual TDR loans
$572 3 $650 5 
Allowance for Credit Losses on Financing Receivables
The following tables detail activity in the ALLL at and for the years ended December 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.
Year EndedDecember 31, 2020
(dollars in thousands)Beginning BalanceCharge-offsRecoveriesProvisionsEnding Balance
Commercial real estate$7,398 $(944)$17 $7,273 $13,744 
Residential first mortgages464 — — 841 1,305 
Residential rentals397 — — 1,016 1,413 
Construction and land development273 — — 128 401 
Home equity and second mortgages149 (53)9 156 261 
Commercial loans1,086 (1,027)20 1,143 1,222 
Consumer loans10 (6)— 16 20 
Commercial equipment1,165 (328)94 127 1,058 
$10,942 $(2,358)$140 $10,700 $19,424 
Purchase Credit Impaired**$— $— $— $— $— 
** There is no allowance for loan loss on the PCI or the SBA PPP portfolios. A more detailed rollforward schedule will be presented if an allowance is required.
Year EndedDecember 31, 2019
(dollars in thousands)Beginning BalanceCharge-offsRecoveriesProvisionsEnding Balance
Commercial real estate$6,882 $(148)$15 $649 $7,398 
Residential first mortgages755 — — (291)464 
Residential rentals498 (53)46 (94)397 
Construction and land development310 (329)— 292 273 
Home equity and second mortgages133 (28)6 38 149 
Commercial loans1,482 (1,127)40 691 1,086 
Consumer loans6 (5)2 7 10 
Commercial equipment910 (685)102 838 1,165 
$10,976 $(2,375)$211 $2,130 $10,942 
Purchase Credit Impaired**$— $— $— $— $— 
** There is no allowance for loan loss on the PCI portfolios. A more detailed rollforward schedule will be presented if an allowance is required.
Loan receivable and allowance balances disaggregated on basis of Company's impairment methodology
The following tables detail loan receivable and allowance balances disaggregated on the basis of the Company’s impairment methodology at December 31, 2020 and 2019, respectively.
December 31, 2020December 31, 2019
(dollars in thousands)
Ending balance:
individually evaluated for impairment
Ending balance:
collectively evaluated for impairment
Purchase Credit Impaired
Total
Ending balance:
individually evaluated for impairment
Ending balance:
collectively evaluated for impairment
Purchase Credit Impaired
Total
Loan Receivables:
Commercial real estate
$17,714 $1,029,861 $1,572 $1,049,147 $20,707 $942,332 $1,738 $964,777 
Residential first mortgages
1,989 131,790 — 133,779 1,917 165,793 — 167,710 
Residential rentals
625 138,434 — 139,059 937 122,369 295 123,601 
Construction and land development
— 37,520 — 37,520 — 34,133 — 34,133 
Home equity and second mortgages
555 28,168 406 29,129 510 35,197 391 36,098 
Commercial loans
— 52,921 — 52,921 3,127 59,975 — 63,102 
Consumer loans
— 1,027 — 1,027 — 1,104 — 1,104 
Commercial equipment
512 61,181 — 61,693 788 62,859 — 63,647 
$21,395 $1,480,902 $1,978 $1,504,275 $27,986 $1,423,762 $2,424 $1,454,172 
Allowance for loan losses:
Commercial real estate
$1,316 $12,428 $— $13,744 $417 $6,981 $— $7,398 
Residential first mortgages
— 1,305 — 1,305 — 464 — 464 
Residential rentals
— 1,413 — 1,413 — 397 — 397 
Construction and land development
— 401 — 401 — 273 — 273 
Home equity and second mortgages
— 261 — 261 — 149 — 149 
Commercial loans
— 1,222 — 1,222 210 876 — 1,086 
Consumer loans
— 20 — 20 — 10 — 10 
Commercial equipment
40 1,018 — 1,058 201 964 — 1,165 
$1,356 $18,068 $— $19,424 $828 $10,114 $— $10,942 
Credit Quality Indicators
Credit quality indicators as of December 31, 2020 and 2019 were as follows:
Credit Risk Profile by Internally Assigned Grade
(dollars in thousands)
Commercial Real Estate
Construction and Land Dev.
Residential Rentals
12/31/202012/31/201912/31/202012/31/201912/31/202012/31/2019
Unrated
$162,434 $102,695 $1,036 $2,075 $47,605 $38,139 
Pass
866,648 840,403 36,484 32,058 90,633 84,811 
Special mention
2,417 — — — 821 — 
Substandard
17,648 21,679 — — — 651 
Doubtful
— — — — — — 
Loss
— — — — — — 
Total
$1,049,147 $964,777 $37,520 $34,133 $139,059 $123,601 
(dollars in thousands)Commercial LoansCommercial EquipmentTotal Commercial Portfolios
12/31/202012/31/201912/31/202012/31/201912/31/202012/31/2019
Unrated$12,962 $16,754 $26,585 $26,045 $250,622 $185,708 
Pass39,959 43,221 31,091 37,399 1,064,815 1,037,892 
Special mention— — 3,977 — 7,215 — 
Substandard— 3,127 40 203 17,688 25,660 
Doubtful— — — — — — 
Loss— — — — — — 
Total$52,921 $63,102 $61,693 $63,647 $1,340,340 $1,249,260 
(dollars in thousands)Non-Commercial Portfolios** U.S. SBA PPP LoansTotal All Portfolios
12/31/202012/31/201912/31/202012/31/201912/31/202012/31/2019
Unrated$136,792 $164,991 $110,320 $— $497,734 $350,699 
Pass25,125 38,718 — — 1,089,940 1,076,610 
Special mention457 — — — 7,672 — 
Substandard1,561 1,203 — — 19,249 26,863 
Doubtful— — — — — — 
Loss— — — — — — 
Total$163,935 $204,912 $110,320 $— $1,614,595 $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 (Non-Commercial Portfolios)
(dollars in thousands)Residential First MortgagesHome Equity and Second Mtg.Consumer Loans
12/31/202012/31/201912/31/202012/31/201912/31/202012/31/2019
Performing$133,444 $167,710 $28,927 $35,921 $1,027 $1,104 
Nonperforming335 — 202 177 — — 
Total$133,779 $167,710 $29,129 $36,098 $1,027 $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 year ended December 31, 2020 follows:
Years Ended December 31,
(dollars in thousands)
20202019
Accretable yield, beginning of period$677 $733 
Accretion(225)(354)
Reclassification from nonaccretable difference25 330 
Other changes, net(135)(32)
Accretable yield, end of period$342 $677 
Summary Of Acquired And Non Acquired Loans Table
The following is a summary of acquired and non-acquired loans as of December 31, 2020 and 2019:
BY ACQUIRED AND NON-ACQUIREDDecember 31, 2020%December 31, 2019%
Acquired loans - performing$58,999 3.66 %$74,654 5.13 %
Acquired loans - purchase credit impaired ("PCI")1,978 0.12 %2,424 0.17 %
Total acquired loans60,977 3.78 %77,078 5.30 %
U.S. SBA PPP loans110,320 6.83 %— — %
Non-acquired loans**1,443,298 89.39 %1,377,094 94.70 %
Gross loans1,614,595 1,454,172 
Net deferred costs (fees)(1,096)(0.07)%1,879 0.13 %
Total loans, net of deferred costs$1,613,499 $1,456,051 
** Non-acquired loans include loans transferred from acquired pools following release of acquisition accounting FMV adjustments.
Related Party Loans Activity in loans outstanding to executive officers and directors and their related interests are summarized as follows:
(dollars in thousands)
At and For the Years Ended December 31,
20202019
Balance, beginning of period
$19,373 $35,290 
Loans and additions
1,569 1,845 
Change in Directors' status
(2,617)(9,408)
Repayments
(1,958)(8,354)
Balance, end of period
$16,367 $19,373