The following table presents total loans outstanding, by portfolio segment, as of March 31, 2021 and December 31, 2020:

(1)	Included Paycheck Protection Program, or PPP, loans of $256.8 million at March 31, 2021 and $268.4 million at December 31, 2020.

Total loans included net deferred loan fees and costs of $5.9 million and $4.7 million at March 31, 2021 and December 31, 2020, respectively. Deferred loan fees on PPP loans were $5.7 million at March 31, 2021 and $4.3 million at December 31, 2020.

Management monitors the credit quality of its loan portfolio on an ongoing basis. Measurements of delinquency and past due status are based on the contractual terms of each loan. Past due loans are reviewed regularly to identify loans for nonaccrual status. Loan modifications made in accordance with the Interagency Statement on Loan Modifications and Reporting for Financial Institutions as issued on April 7, 2020, are included as accruing current.

The following tables present a past due aging analysis of total loans outstanding, by portfolio segment, as of March 31, 2021 and December 31, 2020:


	March 31, 2021
					90 Days
	Accruing		30 - 89 Days		or More				Total
(dollars in thousands)	Current		Past Due		Past Due		Nonaccrual		Loans
Commercial
Commercial and industrial	$	675,755	$	75	$	—	$	2,199	$	678,029
Real estate construction		40,473		—		—		—		40,473
Commercial real estate		564,959		2,602		—		1,890		569,451
Total commercial		1,281,187		2,677		—		4,089		1,287,953
Consumer
Residential real estate first mortgage		453,574		952		—		432		454,958
Residential real estate junior lien		129,917		184		—		198		130,299
Other revolving and installment		63,980		118		—		37		64,135
Total consumer		647,471		1,254		—		667		649,392
Total loans	$	1,928,658	$	3,931	$	—	$	4,756	$	1,937,345


	December 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	$	689,340	$	500	$	30	$	1,988	$	691,858
Real estate construction		44,451		—		—		—		44,451
Commercial real estate		558,127		2,449		—		2,431		563,007
Total commercial		1,291,918		2,949		30		4,419		1,299,316
Consumer
Residential real estate first mortgage		461,179		1,752		—		439		463,370
Residential real estate junior lien		143,060		191		—		165		143,416
Other revolving and installment		73,128		118		—		27		73,273
Total consumer		677,367		2,061		—		631		680,059
Total loans	$	1,969,285	$	5,010	$	30	$	5,050	$	1,979,375

The Company’s consumer loan portfolio is primarily comprised of secured loans that are evaluated at origination on a centralized basis against standardized underwriting criteria. The Company generally does not risk rate consumer loans unless a default event such as bankruptcy or extended nonperformance takes place. Credit quality for the consumer loan portfolio is measured by delinquency rates, nonaccrual amounts and actual losses incurred.

The Company assigns a risk rating to all commercial loans, except pools of homogeneous loans, and periodically performs detailed internal and external reviews of risk rated loans over a certain threshold to identify credit risks and to assess the overall collectability of the portfolio. These risk ratings are also subject to examination by the Company’s regulators. During the internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate and the estimated fair values of collateral securing the loans. These credit quality indicators are used to assign a risk rating to each individual loan.

The Company’s ratings are aligned to pass and criticized categories. The criticized category includes special mention, substandard, and doubtful risk ratings. The risk ratings are defined as follows:

Pass: A pass loan is a credit with no existing or known potential weaknesses deserving of management’s close attention.

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, this potential weakness may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date. Special mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification.

Substandard: Loans classified as substandard are not adequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. Well-defined weaknesses include a borrower’s lack of marketability, inadequate cash flow or collateral support, failure to complete construction on time, or the failure to fulfill economic expectations. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loss: Loans classified as loss are considered uncollectible and charged off immediately.

The tables below present total loans outstanding, by loan portfolio segment, and risk category as of March 31, 2021 and December 31, 2020:


	March 31, 2021
			Criticized
			Special
(dollars in thousands)	Pass		Mention		Substandard		Doubtful		Total
Commercial
Commercial and industrial	$	658,607	$	2,725	$	16,516	$	181	$	678,029
Real estate construction		40,473		—		—		—		40,473
Commercial real estate		540,906		3,615		24,930		—		569,451
Total commercial		1,239,986		6,340		41,446		181		1,287,953
Consumer
Residential real estate first mortgage		448,919		3,928		2,111		—		454,958
Residential real estate junior lien		128,788		407		1,104		—		130,299
Other revolving and installment		64,098		—		37		—		64,135
Total consumer		641,805		4,335		3,252		—		649,392
Total loans	$	1,881,791	$	10,675	$	44,698	$	181	$	1,937,345


	December 31, 2020
			Criticized
			Special
(dollars in thousands)	Pass		Mention		Substandard		Doubtful		Total
Commercial
Commercial and industrial	$	669,602	$	5,415	$	16,841	$	—	$	691,858
Real estate construction		44,451		—		—		—		44,451
Commercial real estate		533,733		6,686		22,588		—		563,007
Total commercial		1,247,786		12,101		39,429		—		1,299,316
Consumer
Residential real estate first mortgage		461,221		1,406		743		—		463,370
Residential real estate junior lien		140,461		1,819		1,136		—		143,416
Other revolving and installment		73,236		—		37		—		73,273
Total consumer		674,918		3,225		1,916		—		680,059
Total loans	$	1,922,704	$	15,326	$	41,345	$	—	$	1,979,375

The adequacy of the allowance for loan losses is assessed at the end of each quarter. The allowance for loan losses includes a specific component related to loans that are individually evaluated for impairment and a general component related to loans that are segregated into homogeneous pools and collectively evaluated for impairment. The factors applied to these pools are an estimate of probable incurred losses based on management’s evaluation of historical net losses from loans with similar characteristics, which are adjusted by management to reflect current events, trends, and conditions. The adjustments include consideration of the following: changes in lending policies and procedures, economic conditions, nature and volume of the portfolio, experience of lending management, volume and severity of past due loans, quality of the loan review system, value of underlying collateral for collateral dependent loans, concentrations, and other external factors.

The following tables present, by loan portfolio segment, a summary of the changes in the allowance for loan losses for the three months ended March 31, 2021 and 2020:


	Three months ended March 31, 2021
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	10,205	$	316	$	(204)	$	170	$	10,487
Real estate construction		658		(60)		—		—		598
Commercial real estate		14,105		277		(536)		3		13,849
Total commercial		24,968		533		(740)		173		24,934
Consumer
Residential real estate first mortgage		5,774		273		—		—		6,047
Residential real estate junior lien		1,373		(168)		—		83		1,288
Other revolving and installment		753		(83)		(44)		40		666
Total consumer		7,900		22		(44)		123		8,001
Unallocated		1,378		(555)		—		—		823
Total	$	34,246	$	—	$	(784)	$	296	$	33,758


	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

The following tables present the recorded investment in loans and related allowance for loan losses, by loan portfolio segment, disaggregated on the basis of the Company’s impairment methodology, as of March 31, 2021 and December 31, 2020:


	March 31, 2021
	Recorded Investment						Allowance for Loan Losses
	Individually		Collectively				Individually		Collectively
(dollars in thousands)	Evaluated		Evaluated		Total		Evaluated		Evaluated		Total
Commercial
Commercial and industrial	$	2,794	$	675,235	$	678,029	$	691	$	9,796	$	10,487
Real estate construction		—		40,473		40,473		—		598		598
Commercial real estate		4,676		564,775		569,451		268		13,581		13,849
Total commercial		7,470		1,280,483		1,287,953		959		23,975		24,934
Consumer
Residential real estate first mortgage		432		454,526		454,958		—		6,047		6,047
Residential real estate junior lien		202		130,097		130,299		27		1,261		1,288
Other revolving and installment		37		64,098		64,135		16		650		666
Total consumer		671		648,721		649,392		43		7,958		8,001
Unallocated		—		—		—		—		—		823
Total loans	$	8,141	$	1,929,204	$	1,937,345	$	1,002	$	31,933	$	33,758


	December 31, 2020
	Recorded Investment						Allowance for Loan Losses
	Individually		Collectively				Individually		Collectively
(dollars in thousands)	Evaluated		Evaluated		Total		Evaluated		Evaluated		Total
Commercial
Commercial and industrial	$	2,616	$	689,242	$	691,858	$	336	$	9,869	$	10,205
Real estate construction		—		44,451		44,451		—		658		658
Commercial real estate		5,224		557,783		563,007		837		13,268		14,105
Total commercial		7,840		1,291,476		1,299,316		1,173		23,795		24,968
Consumer
Residential real estate first mortgage		439		462,931		463,370		—		5,774		5,774
Residential real estate junior lien		224		143,192		143,416		19		1,354		1,373
Other revolving and installment		27		73,246		73,273		13		740		753
Total consumer		690		679,369		680,059		32		7,868		7,900
Unallocated		—		—		—		—		—		1,378
Total loans	$	8,530	$	1,970,845	$	1,979,375	$	1,205	$	31,663	$	34,246

The tables below summarize key information on impaired loans. These impaired loans may have estimated losses which are included in the allowance for loan losses.


	March 31, 2021						December 31, 2020
	Recorded		Unpaid		Related		Recorded		Unpaid		Related
(dollars in thousands)	Investment		Principal		Allowance		Investment		Principal		Allowance
Impaired loans with a valuation allowance
Commercial and industrial	$	1,606	$	1,689	$	691	$	723	$	725	$	336
Commercial real estate		2,791		2,816		268		3,948		3,974		837
Residential real estate junior lien		27		29		27		19		20		19
Other revolving and installment		37		38		16		27		27		13
Total impaired loans with a valuation allowance		4,461		4,572		1,002		4,717		4,746		1,205
Impaired loans without a valuation allowance
Commercial and industrial		1,188		1,341		—		1,893		2,173		—
Commercial real estate		1,885		2,029		—		1,276		1,415		—
Residential real estate first mortgage		432		461		—		439		464		—
Residential real estate junior lien		175		199		—		205		306		—
Total impaired loans without a valuation allowance		3,680		4,030		—		3,813		4,358		—
Total impaired loans
Commercial and industrial		2,794		3,030		691		2,616		2,898		336
Commercial real estate		4,676		4,845		268		5,224		5,389		837
Residential real estate first mortgage		432		461		—		439		464		—
Residential real estate junior lien		202		228		27		224		326		19
Other revolving and installment		37		38		16		27		27		13
Total impaired loans	$	8,141	$	8,602	$	1,002	$	8,530	$	9,104	$	1,205

The table below presents the average recorded investment in impaired loans and interest income for the three months ended March 31, 2021 and 2020:


	Three Months Ended March 31,
	2021				2020
	Average				Average
	Recorded		Interest		Recorded		Interest
(dollars in thousands)	Investment		Income		Investment		Income
Impaired loans with a valuation allowance
Commercial and industrial	$	1,816	$	13	$	4,979	$	15
Commercial real estate		2,793		138		1,536		8
Residential real estate junior lien		33		—		20		—
Other revolving and installment		38		—		17		—
Total impaired loans with a valuation allowance		4,680		151		6,552		23
Impaired loans without a valuation allowance
Commercial and industrial		1,258		22		545		27
Commercial real estate		2,158		—		—		—
Residential real estate first mortgage		435		—		835		—
Residential real estate junior lien		176		—		224		3
Other revolving and installment		—		—		8		—
Total impaired loans without a valuation allowance		4,027		22		1,612		30
Total impaired loans
Commercial and industrial		3,074		35		5,524		42
Real estate construction		—		—		—		—
Commercial real estate		4,951		138		1,536		8
Residential real estate first mortgage		435		—		835		—
Residential real estate junior lien		209		—		244		3
Other revolving and installment		38		—		25		—
Total impaired loans	$	8,707	$	173	$	8,164	$	53

Loans with a carrying value of $1.2 billion as of March 31, 2021 and December 31, 2020, respectively, were pledged to secure public deposits, and for other purposes required or permitted by law.

Under certain circumstances, the Company will provide borrowers relief through loan restructurings. A restructuring of debt constitutes a TDR if the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. TDR concessions can include reduction of interest rates, extension of maturity dates, forgiveness of principal or interest due, or acceptance of other assets in full or partial satisfaction of the debt.

During the first quarter of 2021, there were no loans modified as a TDR. Beginning in 2020, in accordance with the Interagency Statement on Loan Modifications and Reporting for Financial Institutions as issued on April 7, 2020, through March 31, 2021, the Company had entered into modifications on 582 loans representing $154.0 million in principal balances, since the beginning of the COVID-19 pandemic. Of those loans, 16 loans with a total outstanding principal balance of $7.6 million, have been granted additional deferral, 6 loans with a total outstanding principal balance of $767 thousand remain on the first deferral and the remaining loans have been returned to a normal payment status. These deferrals were generally no more than 90 days in duration and were not considered TDRs. During the first quarter of 2020, there were no loans modified as a TDR.

The Company does not have material commitments to lend additional funds to borrowers with loans whose terms have been modified in TDRs or whose loans are on nonaccrual.