Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of total loans outstanding by portfolio segment


	September 30,		December 31,
(dollars in thousands)	2020		2019
Commercial
Commercial and industrial (1)	$	789,036	$	479,144
Real estate construction		33,169		26,378
Commercial real estate		535,216		494,703
Total commercial		1,357,421		1,000,225
Consumer
Residential real estate first mortgage		469,050		457,155
Residential real estate junior lien		152,487		177,373
Other revolving and installment		79,461		86,526
Total consumer		700,998		721,054
Total loans	$	2,058,419	$	1,721,279

(1)

Included Paycheck Protection Program, or PPP, loans of $348.9 million at September 30, 2020.

Schedule of past due aging analysis of the loan portfolio


	September 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	$	784,282	$	1,914	$	—	$	2,840	$	789,036
Real estate construction		32,384		785		—		—		33,169
Commercial real estate		530,984		2,903		—		1,329		535,216
Total commercial		1,347,650		5,602		—		4,169		1,357,421
Consumer
Residential real estate first mortgage		466,551		2,042		—		457		469,050
Residential real estate junior lien		152,111		207		—		169		152,487
Other revolving and installment		79,221		240		—		—		79,461
Total consumer		697,883		2,489		—		626		700,998
Total loans	$	2,045,533	$	8,091	$	—	$	4,795	$	2,058,419


	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


	September 30, 2020
			Criticized
			Special
(dollars in thousands)	Pass		Mention		Substandard		Doubtful		Total
Commercial
Commercial and industrial	$	759,808	$	8,706	$	20,522	$	—	$	789,036
Real estate construction		32,140		783		246		—		33,169
Commercial real estate		501,913		7,265		26,038		—		535,216
Total commercial		1,293,861		16,754		46,806		—		1,357,421
Consumer
Residential real estate first mortgage		467,168		1,413		469		—		469,050
Residential real estate junior lien		149,290		2,005		1,192		—		152,487
Other revolving and installment		79,461		—		—		—		79,461
Total consumer		695,919		3,418		1,661		—		700,998
Total loans	$	1,989,780	$	20,172	$	48,467	$	—	$	2,058,419


	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 September 30, 2020
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	10,797	$	(846)	$	(10)	$	432	$	10,373
Real estate construction		443		40		—		—		483
Commercial real estate		9,948		1,828		—		95		11,871
Total commercial		21,188		1,022		(10)		527		22,727
Consumer
Residential real estate first mortgage		2,673		1,694		—		—		4,367
Residential real estate junior lien		1,102		28		—		81		1,211
Other revolving and installment		546		108		(41)		24		637
Total consumer		4,321		1,830		(41)		105		6,215
Unallocated		1,747		648		—		—		2,395
Total	$	27,256	$	3,500	$	(51)	$	632	$	31,337


	Nine months ended September 30, 2020
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	12,270	$	(498)	$	(2,745)	$	1,346	$	10,373
Real estate construction		303		180		—		—		483
Commercial real estate		6,688		5,953		(865)		95		11,871
Total commercial		19,261		5,635		(3,610)		1,441		22,727
Consumer
Residential real estate first mortgage		1,448		2,914		—		5		4,367
Residential real estate junior lien		671		377		(12)		175		1,211
Other revolving and installment		352		371		(194)		108		637
Total consumer		2,471		3,662		(206)		288		6,215
Unallocated		2,192		203		—		—		2,395
Total	$	23,924	$	9,500	$	(3,816)	$	1,729	$	31,337


	Three months ended September 30, 2019
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	11,694	$	(962)	$	(324)	$	538	$	10,946
Real estate construction		323		25		—		—		348
Commercial real estate		5,765		(4)		—		—		5,761
Total commercial		17,782		(941)		(324)		538		17,055
Consumer
Residential real estate first mortgage		1,155		(139)		—		—		1,016
Residential real estate junior lien		710		157		(20)		49		896
Other revolving and installment		380		1		(31)		28		378
Total consumer		2,245		19		(51)		77		2,290
Unallocated		1,219		2,420		—		—		3,639
Total	$	21,246	$	1,498	$	(375)	$	615	$	22,984


	Nine months ended September 30, 2019
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	12,127	$	3,263	$	(5,275)	$	831	$	10,946
Real estate construction		250		97		(1)		2		348
Commercial real estate		6,279		(668)		—		150		5,761
Total commercial		18,656		2,692		(5,276)		983		17,055
Consumer
Residential real estate first mortgage		1,156		(140)		—		—		1,016
Residential real estate junior lien		805		113		(154)		132		896
Other revolving and installment		380		388		(513)		123		378
Total consumer		2,341		361		(667)		255		2,290
Unallocated		1,177		2,462		—		—		3,639
Total	$	22,174	$	5,515	$	(5,943)	$	1,238	$	22,984

Schedule of loans distributed by portfolio segment and impairment methodology


	September 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	$	3,497	$	785,539	$	789,036	$	379	$	9,994	$	—	$	10,373
Real estate construction		—		33,169		33,169		—		483		—		483
Commercial real estate		1,525		533,691		535,216		9		11,862		—		11,871
Total commercial		5,022		1,352,399		1,357,421		388		22,339		—		22,727
Consumer
Residential real estate first mortgage		457		468,593		469,050		—		4,367		—		4,367
Residential real estate junior lien		229		152,258		152,487		19		1,192		—		1,211
Other revolving and installment		—		79,461		79,461		—		637		—		637
Total consumer		686		700,312		700,998		19		6,196		—		6,215
Total loans	$	5,708	$	2,052,711	$	2,058,419	$	407	$	28,535	$	2,395	$	31,337


	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


	September 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	$	2,523	$	2,609	$	379	$	639	$	727	$	189
Commercial real estate		196		196		9		5,718		5,823		2,946
Residential real estate junior lien		19		20		19		—		—		—
Other revolving and installment		—		—		—		5		6		3
Total impaired loans with a valuation allowance		2,738		2,825		407		6,362		6,556		3,138
Impaired loans without a valuation allowance
Commercial and industrial		974		1,159		—		337		1,110		—
Commercial real estate		1,329		1,448		—		207		236		—
Residential real estate first mortgage		457		469		—		782		797		—
Residential real estate junior lien		210		256		—		266		372		—
Other revolving and installment		—		—		—		—		—		—
Total impaired loans without a valuation allowance		2,970		3,332		—		1,592		2,515		—
Total impaired loans
Commercial and industrial		3,497		3,768		379		976		1,837		189
Commercial real estate		1,525		1,644		9		5,925		6,059		2,946
Residential real estate first mortgage		457		469		—		782		797		—
Residential real estate junior lien		229		276		19		266		372		—
Other revolving and installment		—		—		—		5		6		3
Total impaired loans	$	5,708	$	6,157	$	407	$	7,954	$	9,071	$	3,138

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


	Three months ended September 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	$	2,541	$	14	$	1,964	$	4
Commercial real estate		197		8		1,623		2
Residential real estate first mortgage		—		—		—		—
Residential real estate junior lien		19		—		619		1
Other revolving and installment		—		—		5		—
Total impaired loans with a valuation allowance		2,757		22		4,211		7
Impaired loans without a valuation allowance
Commercial and industrial		1,013		24		1,206		7
Commercial real estate		1,330		—		—		—
Residential real estate first mortgage		459		—		183		—
Residential real estate junior lien		211		3		297		—
Other revolving and installment		—		—		2		—
Total impaired loans without a valuation allowance		3,013		27		1,688		7
Total impaired loans
Commercial and industrial		3,554		38		3,170		11
Commercial real estate		1,527		8		1,623		2
Residential real estate first mortgage		459		—		183		—
Residential real estate junior lien		230		3		916		1
Other revolving and installment		—		—		7		—
Total impaired loans	$	5,770	$	49	$	5,899	$	14


	Nine Months Ended September 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	$	3,815	$	14	$	2,473	$	12
Commercial real estate		200		8		1,668		6
Residential real estate junior lien		20		—		621		3
Other revolving and installment		—		—		5		—
Total impaired loans with a valuation allowance		4,035		22		4,767		21
Impaired loans without a valuation allowance
Commercial and industrial		1,154		26		2,979		23
Real estate construction		—		—		—		—
Commercial real estate		1,699		—		—		—
Residential real estate first mortgage		467		—		92		—
Residential real estate junior lien		217		3		302		—
Other revolving and installment		—		—		4		—
Total impaired loans without a valuation allowance		3,537		29		3,377		23
Total impaired loans
Commercial and industrial		4,969		40		5,452		35
Real estate construction		—		—		—		—
Commercial real estate		1,899		8		1,668		6
Residential real estate first mortgage		467		—		92		—
Residential real estate junior lien		237		3		923		3
Other revolving and installment		—		—		9		—
Total impaired loans	$	7,572	$	51	$	8,144	$	44