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LOANS (Tables)
 9 Months Ended
Sep. 30, 2021
Receivables [Abstract]  
Schedule of Loans Receivable
Loans consist of the following:
 September 30, 2021December 31, 2020
(dollars in thousands)Total% of Gross LoansTotal% of Gross Loans
Portfolio Loans:
Commercial real estate$1,088,636 71.02 %$1,049,147 69.75 %
Residential first mortgages96,835 6.32 %133,779 8.89 %
Residential rentals172,082 11.22 %139,059 9.24 %
Construction and land development37,139 2.42 %37,520 2.49 %
Home equity and second mortgages26,518 1.73 %29,129 1.94 %
Commercial loans48,327 3.15 %52,921 3.52 %
Consumer loans2,168 0.14 %1,027 0.07 %
Commercial equipment61,346 4.00 %61,693 4.10 %
Gross portfolio loans1,533,051 100.00 %1,504,275 100.00 %
Adjustments:
Net deferred costs365 0.01 %1,264 0.08 %
Allowance for loan losses(18,579)(1.21)%(19,424)(1.29)%
(18,214)(18,160)
Net portfolio loans1,514,837 1,486,115 
Gross U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans56,424 110,320 
Net deferred fees(1,617)(2,360)
Net U.S. SBA PPP Loans54,807 107,960 
Total net loans$1,569,644 $1,594,075 
Gross Loans$1,589,475 $1,614,595 
Non-accrual loans
Non-accrual loans as of September 30, 2021 and December 31, 2020 were as follows:
 September 30, 2021
(dollars in thousands)Non-accrual Delinquent LoansNon-accrual Current LoansTotal Non-accrual Loans
Commercial real estate$758 $2,378 $3,136 
Residential first mortgages182 269 451 
Residential rentals257 704 961 
Home equity and second mortgages202 378 580 
Commercial equipment— 32 32 
 $1,399 $3,761 $5,160 
 December 31, 2020
(dollars in thousands)Non-accrual Delinquent LoansNon-accrual Current LoansTotal Non-accrual Loans
Commercial real estate$11,428 $5,184 $16,612 
Residential first mortgages335 459 794 
Residential rentals— 275 275 
Home equity and second mortgages202 293 495 
Commercial equipment— 46 46 
$11,965 $6,257 $18,222 
Past Due Financing Receivables An analysis of past due loans as of September 30, 2021 and December 31, 2020 were as follows:
Age Analysis of Past Due Loan Receivables and PCI Loans
 September 30, 2021
(dollars in thousands)31-60 Days61-89 Days90 or Greater DaysTotal Past DuePCI LoansCurrentTotal Loan Receivables
Commercial real estate$— $— $759 $759 $1,144 $1,086,733 $1,088,636 
Residential first mortgages— — 182 182 — 96,653 96,835 
Residential rentals— 189 257 446 — 171,636 172,082 
Construction and land dev.— — — — — 37,139 37,139 
Home equity and second mtg.— — 202 202 — 26,316 26,518 
Commercial loans— — — — — 48,327 48,327 
Consumer loans— — — — — 2,168 2,168 
Commercial equipment— — — — — 61,346 61,346 
Total portfolio loans$— $189 $1,400 $1,589 $1,144 $1,530,318 $1,533,051 
U.S. SBA PPP loans$— $— $— $— $— $56,424 $56,424 

 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 September 30, 2021 and 2020 and at December 31, 2020 were as follows:
 September 30, 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$3,205 $2,377 $759 $3,136 $291 $3,146 $25 $3,177 $80 
Residential first mortgages884 872 — 872 — 873 7 878 25 
Residential rentals990 961 — 961 — 961 13 956 38 
Home equity and second mtg.602 580 — 580 — 581 3 583 10 
Commercial equipment490 455 32 487 32 489 5 493 16 
Total$6,171 $5,245 $791 $6,036 $323 $6,050 $53 $6,087 $169 
 September 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$18,355 $16,000 $2,148 $18,148 $468 $18,181 $74 $18,243 $299 
Residential first mortgages1,741 1,739 — 1,739 — 1,747 11 1,770 39 
Residential rentals636 636 — 636 — 638 6 648 24 
Home equity and second mtg.552 540 — 540 — 542 3 607 12 
Commercial loans1,807 1,807 — 1,807 — 1,807 — 1,807 — 
Consumer loans— — — — — — — — — 
Commercial equipment532 476 42 518 42 527 8 536 29 
Total$23,623 $21,198 $2,190 $23,388 $510 $23,442 $102 $23,611 $403 

 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 equipment527 472 40 512 40 531 30 
Total$21,674 $15,556 $5,839 $21,395 $1,356 $21,505 $508 
TDRs, Included in Impaired Loans Schedule
TDRs included in the impaired loan schedules above, as of September 30, 2021 and December 31, 2020 were as follows:
 September 30, 2021December 31, 2020
(dollars in thousands)Dollars Number of LoansDollarsNumber of Loans
Commercial real estate$— — $1,376 2 
Residential first mortgages— — 247 2 
Commercial equipment455 1 471 2 
Total TDRs455 1 2,094 6 
Less: TDRs included in non-accrual loans— — (1,522)(3)
Total accrual TDR loans$455 1 $572 3 
Allowance for Credit Losses on Financing Receivables
The following tables detail activity in the ALLL at and for the three and nine months ended September 30, 2021 and 2020. 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 EndedSeptember 30, 2021
(dollars in thousands)Beginning BalanceCharge-offsRecoveriesProvisionsEnding Balance
Commercial real estate$13,918 $(491)$4 $(12)$13,419 
Residential first mortgages847 — — 65 912 
Residential rentals1,186 — — 614 1,800 
Construction and land development332 — — 36 368 
Home equity and second mortgages242 — 1 6 249 
Commercial loans1,113 — 529 (733)909 
Consumer loans28 — — 14 42 
Commercial equipment798 — 20 10 828 
 18,464 (491)554 — 18,527 
Purchase Credit Impaired52 — — — 52 
Total$18,516 $(491)$554 $— $18,579 
Nine Months Ended
September 30, 2021
(dollars in thousands)Beginning BalanceCharge-offsRecoveriesProvisionsEnding Balance
Commercial real estate$13,744 $(1,739)$6 $1,408 $13,419 
Residential first mortgages1,305 (142)— (251)912 
Residential rentals1,413 (46)— 433 1,800 
Construction and land development401 — — (33)368 
Home equity and second mortgages261 — 4 (16)249 
Commercial loans1,222 (76)539 (776)909 
Consumer loans20 — — 22 42 
Commercial equipment1,058 (34)57 (253)828 
19,424 (2,037)606 534 18,527 
Purchase Credit Impaired— — — 52 52 
Total$19,424 $(2,037)$606 $586 $18,579 
Three Months EndedSeptember 30, 2020
(dollars in thousands)Beginning BalanceCharge-offsRecoveriesProvisionsEnding Balance
Commercial real estate$11,268 $(15)$15 $1,852 $13,120 
Residential first mortgages885 — — 225 1,110 
Residential rentals1,059 — — 420 1,479 
Construction and land development428 — — 26 454 
Home equity and second mortgages259 — 7 46 312 
Commercial loans1,161 — 5 (87)1,079 
Consumer loans15 (6)— 11 20 
Commercial equipment1,243 (44)49 7 1,255 
16,318 (65)76 2,500 18,829 
Purchase Credit Impaired— — — — — 
Total$16,318 $(65)$76 $2,500 $18,829 
Nine Months Ended
September 30, 2020
(dollars in thousands)Beginning BalanceCharge-offsRecoveriesProvisionsEnding Balance
Commercial real estate$7,398 $(944)$15 $6,651 $13,120 
Residential first mortgages464 — — 646 1,110 
Residential rentals397 — — 1,082 1,479 
Construction and land development273 — — 181 454 
Home equity and second mortgages149 (25)8 180 312 
Commercial loans1,086 (1,027)15 1,005 1,079 
Consumer loans10 (6)— 16 20 
Commercial equipment1,165 (326)77 339 1,255 
10,942 (2,328)115 10,100 18,829 
Purchase Credit Impaired— — — — — 
Total$10,942 $(2,328)$115 $10,100 $18,829 
The following tables detail loan receivable and allowance balances at September 30, 2021 and 2020 and December 31, 2020.
 September 30, 2021December 31, 2020September 30, 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$3,136 $1,084,356 $1,144 $1,088,636 $17,714 $1,029,861 $1,572 $1,049,147 $18,148 $1,002,258 $1,581 $1,021,987 
Residential first mortgages872 95,963 — 96,835 1,989 131,790 — 133,779 1,739 146,017 — 147,756 
Residential rentals961 171,121 — 172,082 625 138,434 — 139,059 636 137,314 — 137,950 
Construction and land development— 37,139 — 37,139 — 37,520 — 37,520 — 36,061 — 36,061 
Home equity and second mortgages580 25,938 — 26,518 555 28,168 406 29,129 540 30,483 404 31,427 
Commercial loans— 48,327 — 48,327 — 52,921 — 52,921 1,807 57,087 — 58,894 
Consumer loans— 2,168 — 2,168 — 1,027 — 1,027 — 1,081 — 1,081 
Commercial equipment487 60,859 — 61,346 512 61,181 — 61,693 518 60,858 — 61,376 
$6,036 $1,525,871 $1,144 $1,533,051 $21,395 $1,480,902 $1,978 $1,504,275 $23,388 $1,471,159 $1,985 $1,496,532 
Allowance for loan losses:
Commercial real estate$291 $13,128 $52 $13,471 $1,316 $12,428 $— $13,744 $468 $12,652 $— $13,120 
Residential first mortgages— 912 — 912 — 1,305 — 1,305 — 1,110 — 1,110 
Residential rentals— 1,800 — 1,800 — 1,413 — 1,413 — 1,479 — 1,479 
Construction and land development— 368 — 368 — 401 — 401 — 454 — 454 
Home equity and second mortgages— 249 — 249 — 261 — 261 — 312 — 312 
Commercial loans— 909 — 909 — 1,222 — 1,222 — 1,079 — 1,079 
Consumer loans— 42 — 42 — 20 — 20 — 20 — 20 
Commercial equipment32 796 — 828 40 1,018 — 1,058 42 1,213 — 1,255 
$323 $18,204 $52 $18,579 $1,356 $18,068 $— $19,424 $510 $18,319 $— $18,829 
Credit Quality Indicators
Credit quality indicators as of September 30, 2021 and December 31, 2020 were as follows:
Credit Risk Profile by Internally Assigned Grade
 Commercial Real EstateConstruction and Land Dev.Residential Rentals
(dollars in thousands)9/30/202112/31/20209/30/202112/31/20209/30/202112/31/2020
Unrated$— $162,434 $— $1,036 $— $47,605 
Pass1,084,372 866,648 37,139 36,484 171,121 90,633 
Special mention600 2,417 — — — 821 
Substandard3,664 17,648 — — 961 — 
Doubtful— — — — — — 
Loss— — — — — — 
Total$1,088,636 $1,049,147 $37,139 $37,520 $172,082 $139,059 
 Commercial LoansCommercial EquipmentTotal Commercial Portfolios
(dollars in thousands)9/30/202112/31/20209/30/202112/31/20209/30/202112/31/2020
Unrated$— $12,962 $— $26,585 $— $250,622 
Pass48,327 39,959 61,134 31,091 1,402,093 1,064,815 
Special mention— — 180 3,977 780 7,215 
Substandard— — 32 40 4,657 17,688 
Doubtful— — — — — — 
Loss— — — — — — 
Total$48,327 $52,921 $61,346 $61,693 $1,407,530 $1,340,340 

Non-Commercial Portfolios**U.S. SBA PPP LoansTotal Loans Portfolios
(dollars in thousands)9/30/202112/31/20206/30/202012/31/20199/30/202112/31/2020
Unrated$103,696 $136,792 $56,424 $110,320 $160,120 $497,734 
Pass21,355 25,125 — — 1,423,448 1,089,940 
Special mention— 457 — — 780 7,672 
Substandard470 1,561 — — 5,127 19,249 
Doubtful— — — — — — 
Loss— — — — — — 
Total$125,521 $163,935 $56,424 $110,320 $1,589,475 $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)9/30/202112/31/20209/30/202112/31/20209/30/202112/31/2020
Performing$96,653 $133,444 $26,316 $28,927 $2,168 $1,027 
Nonperforming182 335 202 202 — — 
Total$96,835 $133,779 $26,518 $29,129 $2,168 $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 and nine months ended September 30, 2021 and 2020 and the year ended December 31, 2020 follows:
 Three Months Ended September 30,Nine Months Ended September 30,
(dollars in thousands)2021202020212020
Accretable yield, beginning of period$324 $415 $342 $677 
Additions— — — — 
Accretion(31)(46)(92)(184)
Reclassification from nonaccretable difference15 — 29 24 
Other changes, net(15)— 14 (148)
Accretable yield, end of period$293 $369 $293 $369 
Summary Of Acquired And Non Acquired Loans Table
The following is a summary of acquired and non-acquired loans as of September 30, 2021 and December 31, 2020:
BY ACQUIRED AND NON-ACQUIREDSeptember 30, 2021%December 31, 2020%
Acquired loans - performing$49,342 3.10 %$58,999 3.66 %
Acquired loans - PCI1,144 0.07 %1,978 0.12 %
Total acquired loans50,486 3.17 %60,977 3.78 %
U.S. SBA PPP loans56,424 3.55 %110,320 6.83 %
Non-acquired loans**1,482,565 93.28 %1,443,298 89.39 %
Gross loans1,589,475 1,614,595 
Net deferred fees(1,252)(0.08)%(1,096)(0.07)%
Total loans, net of deferred fees$1,588,223 $1,613,499 
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**Non-acquired loans include loans transferred from acquired pools following release of acquisition accounting FMV adjustments.