XML 39 R29.htm IDEA: XBRL DOCUMENT v3.21.1
LOANS (Tables)
 3 Months Ended
Mar. 31, 2021
Receivables [Abstract]  
Schedule of Loans Receivable
Loans consist of the following:
 March 31, 2021December 31, 2020
(dollars in thousands)Total% of Gross LoansTotal% of Gross Loans
Portfolio Loans:
Commercial real estate$1,081,111 71.74 %$1,049,147 69.75 %
Residential first mortgages115,803 7.68 %133,779 8.89 %
Residential rentals137,522 9.12 %139,059 9.24 %
Construction and land development38,446 2.55 %37,520 2.49 %
Home equity and second mortgages29,363 1.95 %29,129 1.94 %
Commercial loans42,689 2.83 %52,921 3.52 %
Consumer loans1,415 0.09 %1,027 0.07 %
Commercial equipment60,834 4.04 %61,693 4.10 %
Gross portfolio loans1,507,183 100.00 %1,504,275 100.00 %
Less:
Net deferred costs879 0.06 %1,264 0.08 %
Allowance for loan losses(18,256)(1.21)%(19,424)(1.29)%
(17,377)(18,160)
Net portfolio loans$1,489,806 $1,486,115 
U.S. SBA PPP loans$115,700 $110,320 
Net deferred fees(3,215)(2,360)
Net U.S. SBA PPP Loans$112,485 $107,960 
Total net loans$1,602,291 $1,594,075 
Gross Loans$1,622,883 $1,614,595 
Non-accrual loans
Non-accrual loans as of March 31, 2021 and December 31, 2020 were as follows:
 March 31, 2021
(dollars in thousands)Non-accrual Delinquent LoansNumber of LoansNon-accrual Current LoansNumber of LoansTotal Non-accrual LoansTotal Number of Loans
Commercial real estate$5,200 2 $6,686 11 $11,886 13 
Residential first mortgages50 1 274 1 324 2 
Residential rentals— — 736 5 736 5 
Home equity and second mortgages202 2 390 2 592 4 
Commercial loans— — — — — — 
Commercial equipment— — 85 3 85 3 
 $5,452 5 $8,171 22 $13,623 27 

 December 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$11,428 9 $5,184 9 $16,612 18 
Residential first mortgages335 2 459 2 794 4 
Residential rentals— — 275 2 275 2 
Home equity and second mortgages202 2 293 1 495 3 
Commercial loans— — — — — — 
Commercial equipment— — 46 3 46 3 
$11,965 13 $6,257 17 $18,222 30 
Past Due Financing Receivables An analysis of past due loans as of March 31, 2021 and December 31, 2020 were as follows:
 March 31, 2021
(dollars in thousands)31-60 Days61-89 Days90 or Greater DaysTotal Past DuePCI LoansCurrentTotal Loan Receivables
Commercial real estate$955 $— $5,201 $6,156 $1,550 $1,073,405 $1,081,111 
Residential first mortgages133 — 50 183 — 115,620 115,803 
Residential rentals265 — — 265 — 137,257 137,522 
Construction and land dev.— — — — — 38,446 38,446 
Home equity and second mtg.20 — 202 222 403 28,738 29,363 
Commercial loans— — — — — 42,689 42,689 
Consumer loans— — — — — 1,415 1,415 
Commercial equipment— — — — — 60,834 60,834 
Total portfolio loans$1,373 $— $5,453 $6,826 $1,953 $1,498,404 $1,507,183 
U.S. SBA PPP loans$— $— $— $— $— $115,700 $115,700 
 December 31, 2020
(dollars in thousands)31-60 Days61-89 Days90 or Greater DaysTotal Past DuePCI LoansCurrentTotal Loan Receivables
Commercial real estate$— $— $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 
Impaired Loans, Including TDRs
Impaired loans, including TDRs, at March 31, 2021 and 2020 and at December 31, 2020 were as follows:
 March 31, 2021
(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$12,029 $5,641 $6,290 $11,931 $854 $11,937 $110 $11,937 $110 
Residential first mortgages794 751 — 751 — 756 11 756 11 
Residential rentals741 736 — 736 — 744 10 744 10 
Home equity and second mtg.666 651 — 651 — 657 4 657 4 
Commercial loans— — — — — — — — — 
Commercial equipment559 507 37 544 37 565 12 565 12 
Total$14,789 $8,286 $6,327 $14,613 $891 $14,659 $147 $14,659 $147 

 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 
 December 31, 2020
(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$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 loans— — — — — — — 
Commercial equipment527 472 40 512 40 531 30 
Total$21,674 $15,556 $5,839 $21,395 $1,356 $21,505 $508 
TDRs, Included in Impaired Loans Schedule
TDRs included in the impaired loan schedules above, as of March 31, 2021 and December 31, 2020 were as follows:
 March 31, 2021December 31, 2020
(dollars in thousands)Dollars Number of LoansDollarsNumber of Loans
Commercial real estate$45 1 $1,376 2 
Residential first mortgages— — 247 2 
Commercial equipment461 2 471 2 
Total TDRs$506 3 $2,094 6 
Less: TDRs included in non-accrual loans(2)(1)(1,522)(3)
Total accrual TDR loans$504 2 $572 3 
Allowance for Credit Losses on Financing Receivables The following tables detail activity in the ALLL at and for the three months ended March 31, 2021 and 2020, 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.
Three Months EndedMarch 31, 2021
(dollars in thousands)Beginning BalanceCharge-offsRecoveriesProvisionsEnding Balance
Commercial real estate$13,744 $(1,247)$1 $787 $13,285 
Residential first mortgages1,305 (142)— (139)1,024 
Residential rentals1,413 (46)— (6)1,361 
Construction and land development401 — — (36)365 
Home equity and second mortgages261 — 1 1 263 
Commercial loans1,222 (50)5 (165)1,012 
Consumer loans20 — — 9 29 
Commercial equipment1,058 — 15 (156)917 
 $19,424 $(1,485)$22 $295 $18,256 
Purchase Credit Impaired**$— $— $— $— $— 
_______________________________________
**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.
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 $15,061 
Purchase Credit Impaired**$— $— $— $— $— 
_______________________________________
**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.
The following tables detail loan receivable and allowance balances disaggregated on the basis of the Company’s impairment methodology at March 31, 2021 and 2020 and December 31, 2020.
 March 31, 2021December 31, 2020March 31, 2020
(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$11,931 $1,067,630 $1,550 $1,081,111 $17,714 $1,029,861 $1,572 $1,049,147 $22,314 $953,634 $1,730 $977,678 
Residential first mortgages751 115,052 — 115,803 1,989 131,790 — 133,779 1,738 169,057 — 170,795 
Residential rentals736 136,786 — 137,522 625 138,434 — 139,059 656 132,360 — 133,016 
Construction and land development— 38,446 — 38,446 — 37,520 — 37,520 — 38,627 — 38,627 
Home equity and second mortgages651 28,309 403 29,363 555 28,168 406 29,129 519 35,023 395 35,937 
Commercial loans— 42,689 — 42,689 — 52,921 — 52,921 2,906 68,065 — 70,971 
Consumer loans— 1,415 — 1,415 — 1,027 — 1,027 — 1,134 — 1,134 
Commercial equipment544 60,290 — 60,834 512 61,181 — 61,693 926 61,005 — 61,931 
$14,613 $1,490,617 $1,953 $1,507,183 $21,395 $1,480,902 $1,978 $1,504,275 $29,059 $1,458,905 $2,125 $1,490,089 
Allowance for loan losses:
Commercial real estate$854 $12,431 $— $13,285 $1,316 $12,428 $— $13,744 $367 $8,716 $— $9,083 
Residential first mortgages— 1,024 — 1,024 — 1,305 — 1,305 — 862 — 862 
Residential rentals— 1,361 — 1,361 — 1,413 — 1,413 — 702 — 702 
Construction and land development— 365 — 365 — 401 — 401 — 436 — 436 
Home equity and second mortgages— 263 — 263 — 261 — 261 — 258 — 258 
Commercial loans— 1,012 — 1,012 — 1,222 — 1,222 932 1,334 — 2,266 
Consumer loans— 29 — 29 — 20 — 20 — 15 — 15 
Commercial equipment37 880 — 917 40 1,018 — 1,058 350 1,089 — 1,439 
$891 $17,365 $— $18,256 $1,356 $18,068 $— $19,424 $1,649 $13,412 $— $15,061 
Credit Quality Indicators
Credit quality indicators as of March 31, 2021 and December 31, 2020 were as follows:
Credit Risk Profile by Internally Assigned Grade
 Commercial Real EstateConstruction and Land Dev.Residential Rentals
(dollars in thousands)3/31/202112/31/20203/31/202112/31/20203/31/202112/31/2020
Unrated$— $162,434 $— $1,036 $— $47,605 
Pass1,065,163 866,648 38,446 36,484 136,786 90,633 
Special mention3,890 2,417 — — — 821 
Substandard12,058 17,648 — — 736 — 
Doubtful— — — — — — 
Loss— — — — — — 
Total$1,081,111 $1,049,147 $38,446 $37,520 $137,522 $139,059 

 Commercial LoansCommercial EquipmentTotal Commercial Portfolios
(dollars in thousands)3/31/202112/31/20203/31/202112/31/20203/31/202112/31/2020
Unrated$— $12,962 $— $26,585 $— $250,622 
Pass42,689 39,959 56,872 31,091 1,339,956 1,064,815 
Special mention— — 3,879 3,977 7,769 7,215 
Substandard— — 83 40 12,877 17,688 
Doubtful— — — — — — 
Loss— — — — — — 
Total$42,689 $52,921 $60,834 $61,693 $1,360,602 $1,340,340 

Non-Commercial Portfolios **U.S. SBA PPP LoansTotal Loans Portfolios
(dollars in thousands)3/31/202112/31/20206/30/202012/31/20193/31/202112/31/2020
Unrated$121,171 $136,792 $115,700 $110,320 $236,871 $497,734 
Pass24,471 25,125 — — 1,364,427 1,089,940 
Special mention— 457 — — 7,769 7,672 
Substandard939 1,561 — — 13,816 19,249 
Doubtful— — — — — — 
Loss— — — — — — 
Total$146,581 $163,935 $115,700 $110,320 $1,622,883 $1,614,595 
_______________________________________
**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)3/31/202112/31/20203/31/202112/31/20203/31/202112/31/2020
Performing$115,753 $133,444 $29,161 $28,927 $1,415 $1,027 
Nonperforming50 335 202 202 — — 
Total$115,803 $133,779 $29,363 $29,129 $1,415 $1,027 
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, 2021 and 2020 and the year ended December 31, 2020 follows:
 Three Months Ended March 31,
(dollars in thousands)20212020
Accretable yield, beginning of period$342 $677 
Additions— — 
Accretion(31)(139)
Reclassification from nonaccretable difference— — 
Other changes, net— — 
Accretable yield, end of period$311 $538 
Summary Of Acquired And Non Acquired Loans Table
The following is a summary of acquired and non-acquired loans as of March 31, 2021 and December 31, 2020:
BY ACQUIRED AND NON-ACQUIREDMarch 31, 2021%December 31, 2020%
Acquired loans - performing$55,381 3.41 %$58,999 3.66 %
Acquired loans - purchase credit impaired ("PCI")1,953 0.12 %1,978 0.12 %
Total acquired loans57,334 3.53 %60,977 3.78 %
U.S. SBA PPP loans115,700 7.13 %110,320 6.83 %
Non-acquired loans**1,449,849 89.34 %1,443,298 89.39 %
Gross loans1,622,883 1,614,595 
Net deferred fees(2,336)(0.14)%(1,096)(0.07)%
Total loans, net of deferred fees$1,620,547 $1,613,499 
______________________________
**Non-acquired loans include loans transferred from acquired pools following release of acquisition accounting FMV adjustments.