Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2020

Schedule of total loans outstanding by portfolio segment


	June 30,		December 31,
(dollars in thousands)	2020		2019
Commercial
Commercial and industrial (1)	$	794,204	$	479,144
Real estate construction		31,344		26,378
Commercial real estate		519,104		494,703
Total commercial		1,344,652		1,000,225
Consumer
Residential real estate first mortgage		456,737		457,155
Residential real estate junior lien		154,351		177,373
Other revolving and installment		78,457		86,526
Total consumer		689,545		721,054
Total loans	$	2,034,197	$	1,721,279

(1)

Includes Paycheck Protection Program, or PPP, loans of $347.3 million at June 30, 2020.

Schedule of past due aging analysis of the loan portfolio


	June 30, 2020
					90 Days
	Accruing		30 - 89 Days		or More				Total
(dollars in thousands)	Current		Past Due		Past Due		Nonaccrual		Loans
Commercial
Commercial and industrial	$	790,675	$	662	$	—	$	2,867	$	794,204
Real estate construction		31,344		—		—		—		31,344
Commercial real estate		517,657		—		—		1,447		519,104
Total commercial		1,339,676		662		—		4,314		1,344,652
Consumer
Residential real estate first mortgage		453,810		2,163		—		764		456,737
Residential real estate junior lien		153,907		233		—		211		154,351
Other revolving and installment		78,306		112		—		39		78,457
Total consumer		686,023		2,508		—		1,014		689,545
Total loans	$	2,025,699	$	3,170	$	—	$	5,328	$	2,034,197


	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


	June 30, 2020
			Criticized
			Special
(dollars in thousands)	Pass		Mention		Substandard		Doubtful		Total
Commercial
Commercial and industrial	$	768,851	$	5,886	$	19,467	$	—	$	794,204
Real estate construction		31,087		—		257		—		31,344
Commercial real estate		491,105		4,348		23,651		—		519,104
Total commercial		1,291,043		10,234		43,375		—		1,344,652
Consumer
Residential real estate first mortgage		455,973		—		764		—		456,737
Residential real estate junior lien		151,249		1,841		1,261		—		154,351
Other revolving and installment		78,418		—		39		—		78,457
Total consumer		685,640		1,841		2,064		—		689,545
Total loans	$	1,976,683	$	12,075	$	45,439	$	—	$	2,034,197


	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 June 30, 2020
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	12,901	$	278	$	(2,703)	$	321	$	10,797
Real estate construction		334		109		—		—		443
Commercial real estate		8,276		2,537		(865)		—		9,948
Total commercial		21,511		2,924		(3,568)		321		21,188
Consumer
Residential real estate first mortgage		2,209		459		—		5		2,673
Residential real estate junior lien		1,025		32		(12)		57		1,102
Other revolving and installment		441		171		(86)		20		546
Total consumer		3,675		662		(98)		82		4,321
Unallocated		1,833		(86)		—		—		1,747
Total	$	27,019	$	3,500	$	(3,666)	$	403	$	27,256


	Six months ended June 30, 2020
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	12,270	$	348	$	(2,735)	$	914	$	10,797
Real estate construction		303		140		—		—		443
Commercial real estate		6,688		4,125		(865)		—		9,948
Total commercial		19,261		4,613		(3,600)		914		21,188
Consumer
Residential real estate first mortgage		1,448		1,220		—		5		2,673
Residential real estate junior lien		671		349		(12)		94		1,102
Other revolving and installment		352		263		(153)		84		546
Total consumer		2,471		1,832		(165)		183		4,321
Unallocated		2,192		(445)		—		—		1,747
Total	$	23,924	$	6,000	$	(3,765)	$	1,097	$	27,256


	Three months ended June 30, 2019
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	13,815	$	818	$	(3,166)	$	227	$	11,694
Real estate construction		251		70		—		2		323
Commercial real estate		5,843		(228)		—		150		5,765
Total commercial		19,909		660		(3,166)		379		17,782
Consumer
Residential real estate first mortgage		1,610		(455)		—		—		1,155
Residential real estate junior lien		761		(51)		(30)		30		710
Other revolving and installment		349		433		(424)		22		380
Total consumer		2,720		(73)		(454)		52		2,245
Unallocated		9		1,210		—		—		1,219
Total	$	22,638	$	1,797	$	(3,620)	$	431	$	21,246


	Six months ended June 30, 2019
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	12,127	$	4,225	$	(4,951)	$	293	$	11,694
Real estate construction		250		72		(1)		2		323
Commercial real estate		6,279		(664)		—		150		5,765
Total commercial		18,656		3,633		(4,952)		445		17,782
Consumer
Residential real estate first mortgage		1,156		(1)		—		—		1,155
Residential real estate junior lien		805		(44)		(134)		83		710
Other revolving and installment		380		387		(482)		95		380
Total consumer		2,341		342		(616)		178		2,245
Unallocated		1,177		42		—		—		1,219
Total	$	22,174	$	4,017	$	(5,568)	$	623	$	21,246

Schedule of loans distributed by portfolio segment and impairment methodology


	June 30, 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	$	3,644	$	790,560	$	794,204	$	503	$	10,294	$	—	$	10,797
Real estate construction		—		31,344		31,344		—		443		—		443
Commercial real estate		1,529		517,575		519,104		10		9,938		—		9,948
Total commercial		5,173		1,339,479		1,344,652		513		20,675		—		21,188
Consumer
Residential real estate first mortgage		747		455,990		456,737		—		2,673		—		2,673
Residential real estate junior lien		260		154,091		154,351		20		1,082		—		1,102
Other revolving and installment		39		78,418		78,457		16		530		—		546
Total consumer		1,046		688,499		689,545		36		4,285		—		4,321
Total loans	$	6,219	$	2,027,978	$	2,034,197	$	549	$	24,960	$	1,747	$	27,256


	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


	June 30, 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	$	3,020	$	3,096	$	503	$	639	$	727	$	189
Commercial real estate		199		227		10		5,718		5,823		2,946
Residential real estate junior lien		19		20		20		—		—		—
Other revolving and installment		35		35		16		5		6		3
Total impaired loans with a valuation allowance		3,273		3,378		549		6,362		6,556		3,138
Impaired loans without a valuation allowance
Commercial and industrial		624		805		—		337		1,110		—
Commercial real estate		1,330		1,447		—		207		236		—
Residential real estate first mortgage		747		764		—		782		797		—
Residential real estate junior lien		241		341		—		266		372		—
Other revolving and installment		4		4		—		—		—		—
Total impaired loans without a valuation allowance		2,946		3,361		—		1,592		2,515		—
Total impaired loans
Commercial and industrial		3,644		3,901		503		976		1,837		189
Commercial real estate		1,529		1,674		10		5,925		6,059		2,946
Residential real estate first mortgage		747		764		—		782		797		—
Residential real estate junior lien		260		361		20		266		372		—
Other revolving and installment		39		39		16		5		6		3
Total impaired loans	$	6,219	$	6,739	$	549	$	7,954	$	9,071	$	3,138

The table below presents the average recorded investment in impaired loans and interest income for the three and six months ended June 30, 2020 and 2019:


	Three months ended June 30,
	2020				2019
	Average				Average
	Recorded		Interest		Recorded		Interest
(dollars in thousands)	Investment		Income		Investment		Income
Impaired loans with a valuation allowance
Commercial and industrial	$	4,881	$	15	$	2,229	$	16
Commercial real estate		200		8		1,678		8
Residential real estate first mortgage		—		—		—		—
Residential real estate junior lien		20		—		60		3
Other revolving and installment		35		—		9		—
Total impaired loans with a valuation allowance		5,136		23		3,976		27
Impaired loans without a valuation allowance
Commercial and industrial		694		26		1,271		31
Commercial real estate		1,693		—		—		—
Residential real estate first mortgage		755		—		—		—
Residential real estate junior lien		255		3		751		1
Other revolving and installment		4		—		5		—
Total impaired loans without a valuation allowance		3,401		29		2,027		32
Total impaired loans
Commercial and industrial		5,575		41		3,500		47
Commercial real estate		1,893		8		1,678		8
Residential real estate first mortgage		755		—		—		—
Residential real estate junior lien		275		3		811		4
Other revolving and installment		39		—		14		—
Total impaired loans	$	8,537	$	52	$	6,003	$	59


	Six Months Ended June 30,
	2020				2019
	Average				Average
	Recorded		Interest		Recorded		Interest
(dollars in thousands)	Investment		Income		Investment		Income
Impaired loans with a valuation allowance
Commercial and industrial	$	4,714	$	15	$	1,332	$	17
Commercial real estate		203		8		1,505		—
Residential real estate junior lien		20		—		—		—
Other revolving and installment		35		—		9		—
Total impaired loans with a valuation allowance		4,972		23		2,846		17
Impaired loans without a valuation allowance
Commercial and industrial		747		26		4,835		33
Real estate construction		—		—		217		9
Commercial real estate		1,821		—		—		—
Residential real estate first mortgage		761		—		—		—
Residential real estate junior lien		279		3		821		4
Other revolving and installment		5		—		13		—
Total impaired loans without a valuation allowance		3,613		29		5,886		46
Total impaired loans
Commercial and industrial		5,461		41		6,167		50
Real estate construction		—		—		217		9
Commercial real estate		2,024		8		1,505		—
Residential real estate first mortgage		761		—		—		—
Residential real estate junior lien		299		3		821		4
Other revolving and installment		40		—		22		—
Total impaired loans	$	8,585	$	52	$	8,732	$	63