Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2020

Loans and Allowance for Loan Losses

Schedule of total loans outstanding by portfolio segment

	March 31,		December 31,
(dollars in thousands)	2020		2019
Commercial
Commercial and industrial	$	502,637	$	479,144
Real estate construction		25,487		26,378
Commercial real estate		522,106		494,703
Total commercial		1,050,230		1,000,225
Consumer
Residential real estate first mortgage		457,895		457,155
Residential real estate junior lien		170,538		177,373
Other revolving and installment		79,614		86,526
Total consumer		708,047		721,054
Total loans	$	1,758,277	$	1,721,279

Schedule of past due aging analysis of the loan portfolio

	March 31, 2020
					90 Days
	Accruing		30 - 89 Days		or More				Total
(dollars in thousands)	Current		Past Due		Past Due		Nonaccrual		Loans
Commercial
Commercial and industrial	$	497,635	$	438	$	—	$	4,564	$	502,637
Real estate construction		25,487		—		—		—		25,487
Commercial real estate		518,064		2,602		—		1,440		522,106
Total commercial		1,041,186		3,040		—		6,004		1,050,230
Consumer
Residential real estate first mortgage		455,580		1,574		—		741		457,895
Residential real estate junior lien		170,099		237		11		191		170,538
Other revolving and installment		79,274		317		—		23		79,614
Total consumer		704,953		2,128		11		955		708,047
Total loans	$	1,746,139	$	5,168	$	11	$	6,959	$	1,758,277

	December 31, 2019
					90 Days
	Accruing		30 - 89 Days		or More				Total
(dollars in thousands)	Current		Past Due		Past Due		Nonaccrual		Loans
Commercial
Commercial and industrial	$	473,900	$	382	$	—	$	4,862	$	479,144
Real estate construction		26,251		127		—		—		26,378
Commercial real estate		492,707		556		—		1,440		494,703
Total commercial		992,858		1,065		—		6,302		1,000,225
Consumer
Residential real estate first mortgage		455,244		666		448		797		457,155
Residential real estate junior lien		176,915		184		—		274		177,373
Other revolving and installment		86,172		348		—		6		86,526
Total consumer		718,331		1,198		448		1,077		721,054
Total loans	$	1,711,189	$	2,263	$	448	$	7,379	$	1,721,279

Schedule of loans outstanding, by portfolio segment and risk category

	March 31, 2020
			Criticized
			Special
(dollars in thousands)	Pass		Mention		Substandard		Doubtful		Total
Commercial
Commercial and industrial	$	470,867	$	10,178	$	21,575	$	17	$	502,637
Real estate construction		24,941		279		267		—		25,487
Commercial real estate		492,434		4,422		25,250		—		522,106
Total commercial		988,242		14,879		47,092		17		1,050,230
Consumer
Residential real estate first mortgage		455,720		1,434		741		—		457,895
Residential real estate junior lien		167,356		1,952		1,230		—		170,538
Other revolving and installment		79,591		—		23		—		79,614
Total consumer		702,667		3,386		1,994		—		708,047
Total loans	$	1,690,909	$	18,265	$	49,086	$	17	$	1,758,277

	December 31, 2019
			Criticized
			Special
(dollars in thousands)	Pass		Mention		Substandard		Doubtful		Total
Commercial
Commercial and industrial	$	448,306	$	9,585	$	21,253	$	—	$	479,144
Real estate construction		25,119		282		977		—		26,378
Commercial real estate		462,294		2,359		30,050		—		494,703
Total commercial		935,719		12,226		52,280		—		1,000,225
Consumer
Residential real estate first mortgage		456,358		—		797		—		457,155
Residential real estate junior lien		176,122		—		1,251		—		177,373
Other revolving and installment		86,520		—		6		—		86,526
Total consumer		719,000		—		2,054		—		721,054
Total loans	$	1,654,719	$	12,226	$	54,334	$	—	$	1,721,279

Summary of changes in allowances

	Three months ended March 31, 2020
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	12,270	$	70	$	(32)	$	593	$	12,901
Real estate construction		303		31		—		—		334
Commercial real estate		6,688		1,588		—		—		8,276
Total commercial		19,261		1,689		(32)		593		21,511
Consumer
Residential real estate first mortgage		1,448		761		—		—		2,209
Residential real estate junior lien		671		317		—		37		1,025
Other revolving and installment		352		92		(67)		64		441
Total consumer		2,471		1,170		(67)		101		3,675
Unallocated		2,192		(359)		—		—		1,833
Total	$	23,924	$	2,500	$	(99)	$	694	$	27,019

	Three months ended March 31, 2019
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	12,127	$	3,407	$	(1,785)	$	66	$	13,815
Real estate construction		250		2		(1)		—		251
Commercial real estate		6,279		(436)		—		—		5,843
Total commercial		18,656		2,973		(1,786)		66		19,909
Consumer
Residential real estate first mortgage		1,156		454		—		—		1,610
Residential real estate junior lien		805		7		(104)		53		761
Other revolving and installment		380		(46)		(58)		73		349
Total consumer		2,341		415		(162)		126		2,720
Unallocated		1,177		(1,168)		—		—		9
Total	$	22,174	$	2,220	$	(1,948)	$	192	$	22,638

Schedule of loans distributed by portfolio segment and impairment methodology

	March 31, 2020
	Recorded Investment						Allowance for Loan Losses
	Individually		Collectively				Individually		Collectively
(dollars in thousands)	Evaluated		Evaluated		Total		Evaluated		Evaluated		Unallocated		Total
Commercial
Commercial and industrial	$	5,422	$	497,215	$	502,637	$	2,764	$	10,137	$	—	$	12,901
Real estate construction		—		25,487		25,487		—		334		—		334
Commercial real estate		1,524		520,582		522,106		271		8,005		—		8,276
Total commercial		6,946		1,043,284		1,050,230		3,035		18,476		—		21,511
Consumer
Residential real estate first mortgage		733		457,162		457,895		—		2,209		—		2,209
Residential real estate junior lien		241		170,297		170,538		20		1,005		—		1,025
Other revolving and installment		22		79,592		79,614		11		430		—		441
Total consumer		996		707,051		708,047		31		3,644		—		3,675
Total loans	$	7,942	$	1,750,335	$	1,758,277	$	3,066	$	22,120	$	1,833	$	27,019

	December 31, 2019
	Recorded Investment						Allowance for Loan Losses
	Individually		Collectively				Individually		Collectively
(dollars in thousands)	Evaluated		Evaluated		Total		Evaluated		Evaluated		Unallocated		Total
Commercial
Commercial and industrial	$	976	$	478,168	$	479,144	$	189	$	12,081	$	—	$	12,270
Real estate construction		—		26,378		26,378		—		303		—		303
Commercial real estate		5,925		488,778		494,703		2,946		3,742		—		6,688
Total commercial		6,901		993,324		1,000,225		3,135		16,126		—		19,261
Consumer
Residential real estate first mortgage		782		456,373		457,155		—		1,448		—		1,448
Residential real estate junior lien		266		177,107		177,373		—		671		—		671
Other revolving and installment		5		86,521		86,526		3		349		—		352
Total consumer		1,053		720,001		721,054		3		2,468		—		2,471
Total loans	$	7,954	$	1,713,325	$	1,721,279	$	3,138	$	18,594	$	2,192	$	23,924

Schedule of impaired loans

	March 31, 2020						December 31, 2019
	Recorded		Unpaid		Related		Recorded		Unpaid		Related
(dollars in thousands)	Investment		Principal		Allowance		Investment		Principal		Allowance
Impaired loans with a valuation allowance
Commercial and industrial	$	4,891	$	5,028	$	2,764	$	639	$	727	$	189
Commercial real estate		1,524		1,642		271		5,718		5,823		2,946
Residential real estate junior lien		20		20		20		—		—		—
Other revolving and installment		17		17		11		5		6		3
Total impaired loans with a valuation allowance		6,452		6,707		3,066		6,362		6,556		3,138
Impaired loans without a valuation allowance
Commercial and industrial		531		611		—		337		1,110		—
Commercial real estate		—		—		—		207		236		—
Residential real estate first mortgage		733		741		—		782		797		—
Residential real estate junior lien		221		325		—		266		372		—
Other revolving and installment		5		5		—		—		—		—
Total impaired loans without a valuation allowance		1,490		1,682		—		1,592		2,515		—
Total impaired loans
Commercial and industrial		5,422		5,639		2,764		976		1,837		189
Commercial real estate		1,524		1,642		271		5,925		6,059		2,946
Residential real estate first mortgage		733		741		—		782		797		—
Residential real estate junior lien		241		345		20		266		372		—
Other revolving and installment		22		22		11		5		6		3
Total impaired loans	$	7,942	$	8,389	$	3,066	$	7,954	$	9,071	$	3,138

The table below presents the average recorded investment in impaired loans and interest income for the three months ended March 31, 2020 and 2019:

	Three Months Ended March 31,
	2020				2019
	Average				Average
	Recorded		Interest		Recorded		Interest
(dollars in thousands)	Investment		Income		Investment		Income
Impaired loans with a valuation allowance
Commercial and industrial	$	4,979	$	15	$	5,529	$	—
Commercial real estate		1,536		8		1,533		—
Residential real estate junior lien		20		—		—		—
Other revolving and installment		17		—		27		—
Total impaired loans with a valuation allowance		6,552		23		7,089		—
Impaired loans without a valuation allowance
Commercial and industrial		545		27		1,816		46
Real estate construction		—		—		220		9
Residential real estate first mortgage		835		—		—		—
Residential real estate junior lien		224		3		290		4
Other revolving and installment		8		—		—		—
Total impaired loans without a valuation allowance		1,612		30		2,326		59
Total impaired loans
Commercial and industrial		5,524		42		7,345		46
Real estate construction		—		—		220		9
Commercial real estate		1,536		8		1,533		—
Residential real estate first mortgage		835		—		—		—
Residential real estate junior lien		244		3		290		4
Other revolving and installment		25		—		27		—
Total impaired loans	$	8,164	$	53	$	9,415	$	59