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Loans (Tables)
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Schedule of Loans Receivable
Loans consist of the following:
December 31, 2021December 31, 2020
(dollars in thousands)Total% of Gross LoansTotal% of Gross Loans
Portfolio Loans:
Commercial real estate$1,115,485 70.66 %$1,049,147 69.75 %
Residential first mortgages91,120 5.77 %133,779 8.89 %
Residential rentals195,035 12.35 %139,059 9.24 %
Construction and land development35,590 2.25 %37,520 2.49 %
Home equity and second mortgages25,638 1.62 %29,129 1.94 %
Commercial loans50,574 3.20 %52,921 3.52 %
Consumer loans3,002 0.19 %1,027 0.07 %
Commercial equipment62,499 3.96 %61,693 4.10 %
Gross portfolio loans1,578,943 100.00 %1,504,275 100.00 %
Adjustments:
Net deferred (fees) costs(133)(0.01)%1,264 0.08 %
Allowance for loan losses(18,417)(1.17)%(19,424)(1.29)%
(18,550)(18,160)
Net portfolio loans1,560,393 1,486,115 
Gross U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans27,276 110,320 
Net deferred fees(878)(2,360)
Net U.S. SBA PPP loans26,398 107,960 
Total net loans$1,586,791 $1,594,075 
Total gross loans$1,606,219 $1,614,595 
Non-accrual loans
Non-accrual loans as of December 31, 2021 and 2020 were as follows:
(dollars in thousands)
December 31, 2021
Non- accrual Delinquent Loans
Non-accrual Current Loans
Total Non-accrual Loans
Commercial real estate
$— $4,890 $4,890 
Residential first mortgages
450 — 450 
Residential rentals
252 690 942 
Home equity and second mortgages
202 399 601 
Commercial equipment
— 691 691 
$904 $6,670 $7,574 
U.S. SBA PPP loans$57 $— $57 
(dollars in thousands)
December 31, 2020
Non- accrual Delinquent Loans
Non-accrual Current Loans
Total Non-accrual Loans
Commercial real estate
$11,428 $5,184 $16,612 
Residential first mortgages
335 459 794 
Residential rentals
— 275 275 
Home equity and second mortgages
202 293 495 
Commercial equipment
— 46 46 
$11,965 $6,257 $18,222 
Past Due Financing Receivables
An analysis of past due loans as of December 31, 2021 and 2020 was as follows:
(dollars in thousands)December 31, 2021
31-60 Days61-89 Days90 or Greater DaysTotal Past DuePCI LoansCurrentTotal Loan Receivables
Commercial real estate$— $— $— $— $1,116 $1,114,369 $1,115,485 
Residential first mortgages— 277 450 727 — 90,393 91,120 
Residential rentals— 42 252 294 — 194,741 195,035 
Construction and land dev.— — — — — 35,590 35,590 
Home equity and second mtg.200 — 202 402 — 25,236 25,638 
Commercial loans— — — — — 50,574 50,574 
Consumer loans— — — — — 3,002 3,002 
Commercial equipment— — — — — 62,499 62,499 
Total portfolio loans$200 $319 $904 $1,423 $1,116 $1,576,404 $1,578,943 
U.S. SBA PPP loans $9 $40 $57 $106 $— $27,170 $27,276 
(dollars in thousands)December 31, 2020
31-60 Days61-89 Days90 or Greater DaysTotal Past DuePCI LoansCurrentTotal Loan Receivables
Commercial real estate$— $— $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 
Impaired Loans, Including TDRs
Impaired loans, including TDRs, at December 31, 2021 and 2020 were as follows:
(dollars in thousands)December 31, 2021
Unpaid Contractual Principal BalanceRecorded Investment with No AllowanceRecorded Investment with AllowanceTotal Recorded InvestmentRelated AllowanceYTD Average Recorded InvestmentYTD Interest Income Recognized
Commercial real estate$4,994 $4,797 $93 $4,890 $93 $4,866 $254 
Residential first mortgages879 866 — 866 — 874 32 
Residential rentals982 942 — 942 — 959 48 
Home equity and second mtg.626 601 — 601 — 604 14 
Commercial equipment1,200 1,022 173 1,195 173 2,184 99 
Total$8,681 $8,228 $266 $8,494 $266 $9,487 $447 
(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 
TDRs, Included in Impaired Loans Schedule
TDRs, included in the impaired loan schedules above, as of December 31, 2021 and 2020 were as follows:
(dollars in thousands)
December 31, 2021December 31, 2020
Dollars
Number of Loans
Dollars
Number of Loans
Commercial real estate
$— — $1,376 2 
Residential first mortgages
— — 247 2 
Commercial equipment
447 1 471 2 
Total TDRs
447 1 2,094 6 
Less: TDRs included in non-accrual loans
— — (1,522)(3)
Total accrual TDR loans$447 1 $572 3 
Allowance for Credit Losses on Financing Receivables
The following tables detail activity in the ALLL at and for the years ended December 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.
Year EndedDecember 31, 2021
(dollars in thousands)Beginning BalanceCharge-offsRecoveriesProvisionsEnding Balance
Commercial real estate$13,744 $(1,920)$6 $1,265 $13,095 
Residential first mortgages1,305 (142)— (161)1,002 
Residential rentals1,413 (46)— 808 2,175 
Construction and land development401 — — (141)260 
Home equity and second mortgages261 — 5 8 274 
Commercial loans1,222 (76)543 (1,107)582 
Consumer loans20 — — 38 58 
Commercial equipment1,058 (34)71 (124)971 
Total$19,424 $(2,218)$625 $586 $18,417 
** 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, 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 
Total$10,942 $(2,358)$140 $10,700 $19,424 
** 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.
Loan receivable and allowance balances disaggregated on basis of Company's impairment methodology
The following tables detail loan receivable and allowance balances at December 31, 2021 and 2020, respectively.
December 31, 2021December 31, 2020
(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
$4,890 $1,109,479 $1,116 $1,115,485 $17,714 $1,029,861 $1,572 $1,049,147 
Residential first mortgages
866 90,254 — 91,120 1,989 131,790 — 133,779 
Residential rentals
942 194,093 — 195,035 625 138,434 — 139,059 
Construction and land development
— 35,590 — 35,590 — 37,520 — 37,520 
Home equity and second mortgages
601 25,037 — 25,638 555 28,168 406 29,129 
Commercial loans
— 50,574 — 50,574 — 52,921 — 52,921 
Consumer loans
— 3,002 — 3,002 — 1,027 — 1,027 
Commercial equipment
1,195 61,304 — 62,499 512 61,181 — 61,693 
$8,494 $1,569,333 $1,116 $1,578,943 $21,395 $1,480,902 $1,978 $1,504,275 
Allowance for loan losses:
Commercial real estate
$93 $13,002 $— $13,095 $1,316 $12,428 $— $13,744 
Residential first mortgages
— 1,002 — 1,002 — 1,305 — 1,305 
Residential rentals
— 2,175 — 2,175 — 1,413 — 1,413 
Construction and land development
— 260 — 260 — 401 — 401 
Home equity and second mortgages
— 274 — 274 — 261 — 261 
Commercial loans
— 582 — 582 — 1,222 — 1,222 
Consumer loans
— 58 — 58 — 20 — 20 
Commercial equipment
173 798 — 971 40 1,018 — 1,058 
$266 $18,151 $— $18,417 $1,356 $18,068 $— $19,424 
Credit Quality Indicators
Credit quality indicators as of December 31, 2021 and 2020 were as follows:
Credit Risk Profile by Internally Assigned Grade
(dollars in thousands)
Commercial Real Estate
Construction and Land Dev.
Residential Rentals
12/31/202112/31/202012/31/202112/31/202012/31/202112/31/2020
Unrated
$— $162,434 $— $1,036 $— $47,605 
Pass
1,111,857 866,648 35,590 36,484 194,093 90,633 
Special mention
— 2,417 — — — 821 
Substandard
3,628 17,648 — — 942 — 
Doubtful
— — — — — — 
Loss
— — — — — — 
Total
$1,115,485 $1,049,147 $35,590 $37,520 $195,035 $139,059 
(dollars in thousands)Commercial LoansCommercial EquipmentTotal Commercial Portfolios
12/31/202112/31/202012/31/202112/31/202012/31/202112/31/2020
Unrated$— $12,962 $— $26,585 $— $250,622 
Pass50,574 39,959 62,326 31,091 1,454,440 1,064,815 
Special mention— — — 3,977 — 7,215 
Substandard— — 173 40 4,743 17,688 
Doubtful— — — — — — 
Loss— — — — — — 
Total$50,574 $52,921 $62,499 $61,693 $1,459,183 $1,340,340 
(dollars in thousands)Non-Commercial Portfolios** U.S. SBA PPP LoansTotal All Portfolios
12/31/202112/31/202012/31/202112/31/202012/31/202112/31/2020
Unrated$100,403 $136,792 $27,276 $110,320 $127,679 $497,734 
Pass18,889 25,125 — — 1,473,329 1,089,940 
Special mention— 457 — — — 7,672 
Substandard468 1,561 — — 5,211 19,249 
Doubtful— — — — — — 
Loss— — — — — — 
Total$119,760 $163,935 $27,276 $110,320 $1,606,219 $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
(dollars in thousands)Residential First MortgagesHome Equity and Second Mtg.Consumer Loans
12/31/202112/31/202012/31/202112/31/202012/31/202112/31/2020
Performing$90,670 $133,444 $25,436 $28,927 $3,002 $1,027 
Nonperforming450 335 202 202 — — 
Total$91,120 $133,779 $25,638 $29,129 $3,002 $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 years ended December 31, 2021 and 2020 follows:
Years Ended December 31,
(dollars in thousands)
20212020
Accretable yield, beginning of period$342 $677 
Accretion(117)(225)
Reclassification from nonaccretable difference43 25 
Other changes, net55 (135)
Accretable yield, end of period$323 $342 
Summary Of Acquired And Non Acquired Loans Table
The following is a summary of acquired and non-acquired loans as of December 31, 2021 and 2020:
BY ACQUIRED AND NON-ACQUIREDDecember 31, 2021%December 31, 2020%
Acquired loans - performing$41,066 2.56 %$58,999 3.66 %
Acquired loans - purchase credit impaired ("PCI")1,116 0.07 %1,978 0.12 %
Total acquired loans42,182 2.63 %60,977 3.78 %
U.S. SBA PPP loans27,276 1.70 %110,320 89.39 %
Non-acquired loans**1,536,761 95.67 %1,443,298 6.83 %
Gross loans1,606,219 1,614,595 
Net deferred costs (fees)(1,011)(0.06)%(1,096)(0.07)%
Total loans, net of deferred costs$1,605,208 $1,613,499 
** 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,
20212020
Balance, beginning of period
$16,367 $19,373 
Loans and additions
2,218 1,569 
Change in Directors' status
23,752 (2,617)
Repayments
(16,070)(1,958)
Balance, end of period
$26,267 $16,367