Allowance for Loan Losses (Tables)
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12 Months Ended |
Dec. 31, 2020 |
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| Receivables [Abstract] |
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| Financing Receivables by Evaluation Method |
The balances of loans as of December 31, 2020 by portfolio classification and evaluation method are summarized as follows: | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | Loans individually evaluated for impairment | | Loans collectively evaluated for impairment | | Gross Loans | | Commercial real estate | | $ | 35,915 | | | $ | 1,442,320 | | | $ | 1,478,235 | | | Commercial and industrial | | 8,409 | | | 427,251 | | | 435,660 | | | Commercial construction | | 2,999 | | | 370,310 | | | 373,309 | | | SBA paycheck protection program | | — | | | 453,084 | | | 453,084 | | | Residential mortgages | | 596 | | | 252,375 | | | 252,971 | | | Home equity | | 381 | | | 84,625 | | | 85,006 | | | Consumer | | 18 | | | 8,963 | | | 8,981 | | | Total gross loans | | $ | 48,318 | | | $ | 3,038,928 | | | $ | 3,087,246 | |
The balances of loans as of December 31, 2019 by portfolio classification and evaluation method are summarized as follows: | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | Loans individually evaluated for impairment | | Loans collectively evaluated for impairment | | Gross Loans | | Commercial real estate | | $ | 17,515 | | | $ | 1,376,664 | | | $ | 1,394,179 | | | Commercial and industrial | | 9,332 | | | 491,895 | | | 501,227 | | | Commercial construction | | 3,347 | | | 314,130 | | | 317,477 | | | Residential mortgages | | 1,229 | | | 246,144 | | | 247,373 | | | Home equity | | 411 | | | 97,841 | | | 98,252 | | | Consumer | | 44 | | | 10,010 | | | 10,054 | | | Total gross loans | | $ | 31,878 | | | $ | 2,536,684 | | | $ | 2,568,562 | |
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| Financing Receivable Credit Quality Indicators |
The following tables present the Company's credit risk profile for each portfolio classification by internally assigned adverse risk rating category as of the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2020 | | (Dollars in thousands) | | Adversely Classified | | Not Adversely Classified | | Gross Loans | | Substandard | | Doubtful | | Loss | | Commercial real estate | | $ | 40,088 | | | $ | 197 | | | $ | — | | | $ | 1,437,950 | | | $ | 1,478,235 | | | Commercial and industrial | | 7,901 | | | 2,293 | | | — | | | 425,466 | | | 435,660 | | | Commercial construction | | 3,501 | | | — | | | — | | | 369,808 | | | 373,309 | | | SBA paycheck protection program | | — | | | — | | | — | | | 453,084 | | | 453,084 | | | Residential mortgages | | 474 | | | — | | | — | | | 252,497 | | | 252,971 | | | Home equity | | 381 | | | — | | | — | | | 84,625 | | | 85,006 | | | Consumer | | 41 | | | — | | | — | | | 8,940 | | | 8,981 | | | Total gross loans | | $ | 52,386 | | | $ | 2,490 | | | $ | — | | | $ | 3,032,370 | | | $ | 3,087,246 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2019 | | (Dollars in thousands) | | Adversely Classified | | Not Adversely Classified | | Gross Loans | | Substandard | | Doubtful | | Loss | | Commercial real estate | | $ | 16,664 | | | $ | — | | | $ | — | | | $ | 1,377,515 | | | $ | 1,394,179 | | | Commercial and industrial | | 10,900 | | | 2,370 | | | — | | | 487,957 | | | 501,227 | | | Commercial construction | | 4,836 | | | — | | | — | | | 312,641 | | | 317,477 | | | Residential mortgages | | 1,825 | | | — | | | — | | | 245,548 | | | 247,373 | | | Home equity | | 455 | | | — | | | — | | | 97,797 | | | 98,252 | | | Consumer | | 69 | | | 3 | | | — | | | 9,982 | | | 10,054 | | | Total gross loans | | $ | 34,749 | | | $ | 2,373 | | | $ | — | | | $ | 2,531,440 | | | $ | 2,568,562 | |
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| Past Due Financing Receivables |
The following tables present an age analysis of past due loans by portfolio classification as of the dates indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at December 31, 2020 | | (Dollars in thousands) | |
Past Due 30-59 Days | |
Past Due 60-89 Days | | Past Due 90 Days or More | | Total Past Due Loans | | Current Loans | | Gross Loans | | Non-accrual Loans | | Commercial real estate | | $ | 6,105 | | | $ | 499 | | | $ | 5,592 | | | $ | 12,196 | | | $ | 1,466,039 | | | $ | 1,478,235 | | | $ | 29,680 | | | Commercial and industrial | | 417 | | | 13 | | | 607 | | | 1,037 | | | 434,623 | | | 435,660 | | | 4,574 | | | Commercial construction | | 13,466 | | | — | | | 1,351 | | | 14,817 | | | 358,492 | | | 373,309 | | | 2,999 | | | SBA paycheck protection program | | — | | | — | | | — | | | — | | | 453,084 | | | 453,084 | | | — | | | Residential mortgages | | 890 | | | — | | | 290 | | | 1,180 | | | 251,791 | | | 252,971 | | | 414 | | | Home equity | | — | | | — | | | 255 | | | 255 | | | 84,751 | | | 85,006 | | | 381 | | | Consumer | | 2 | | | 1 | | | — | | | 3 | | | 8,978 | | | 8,981 | | | 2 | | | Total loans | | $ | 20,880 | | | $ | 513 | | | $ | 8,095 | | | $ | 29,488 | | | $ | 3,057,758 | | | $ | 3,087,246 | | | $ | 38,050 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at December 31, 2019 | | (Dollars in thousands) | | Past Due
30-59 Days | | Past Due
60-89 Days | | Past Due 90 Days or More | | Total Past Due Loans | | Current Loans | | Gross Loans | | Non-accrual Loans | | Commercial real estate | | $ | 1,469 | | | $ | 3,914 | | | $ | 4,158 | | | $ | 9,541 | | | $ | 1,384,638 | | | $ | 1,394,179 | | | $ | 8,280 | | | Commercial and industrial | | 576 | | | 1,034 | | | 265 | | | 1,875 | | | 499,352 | | | 501,227 | | | 3,285 | | | Commercial construction | | 576 | | | 3,325 | | | 1,735 | | | 5,636 | | | 311,841 | | | 317,477 | | | 1,735 | | | Residential mortgages | | 700 | | | 283 | | | 623 | | | 1,606 | | | 245,767 | | | 247,373 | | | 411 | | | Home equity | | 645 | | | — | | | 169 | | | 814 | | | 97,438 | | | 98,252 | | | 1,040 | | | Consumer | | 12 | | | — | | | 6 | | | 18 | | | 10,036 | | | 10,054 | | | 20 | | | Total gross loans | | $ | 3,978 | | | $ | 8,556 | | | $ | 6,956 | | | $ | 19,490 | | | $ | 2,549,072 | | | $ | 2,568,562 | | | $ | 14,771 | |
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| Schedule of Interest Lost on Nonaccrual Loans |
The reduction in interest income for the years ended December 31, associated with non-accruing loans is summarized as follows: | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | 2020 | | 2019 | | 2018 | | Income that would have been recognized if non-accrual loans had been current | | $ | 1,946 | | | $ | 1,893 | | | $ | 2,106 | | | Less income recognized | | 472 | | | 244 | | | 833 | | | Reduction in interest income | | $ | 1,474 | | | $ | 1,649 | | | $ | 1,273 | |
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| Impaired Financing Receivables |
The following tables set forth the recorded investment in impaired loans and the related specific allowance allocated by portfolio classification as of the dates indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at December 31, 2020 | | (Dollars in thousands) | | Unpaid contractual principal balance | | Total recorded investment in impaired loans | | Recorded investment with no allowance | | Recorded investment with allowance | | Related specific allowance | | Commercial real estate | | $ | 37,184 | | | $ | 35,915 | | | $ | 14,728 | | | $ | 21,187 | | | $ | 3,454 | | | Commercial and industrial | | 10,628 | | | 8,409 | | | 4,696 | | | 3,713 | | | 2,713 | | | Commercial construction | | 3,668 | | | 2,999 | | | 2,999 | | | — | | | — | | | SBA paycheck protection program | | — | | | — | | | — | | | — | | | — | | | Residential mortgages | | 699 | | | 596 | | | 596 | | | — | | | — | | | Home equity | | 539 | | | 381 | | | 381 | | | — | | | — | | | Consumer | | 18 | | | 18 | | | — | | | 18 | | | 18 | | | Total | | $ | 52,736 | | | $ | 48,318 | | | $ | 23,400 | | | $ | 24,918 | | | $ | 6,185 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at December 31, 2019 | | (Dollars in thousands) | | Unpaid contractual principal balance | | Total recorded investment in impaired loans | | Recorded investment with no allowance | | Recorded investment with allowance | | Related specific allowance | | Commercial real estate | | $ | 18,537 | | | $ | 17,515 | | | $ | 17,129 | | | $ | 386 | | | $ | 31 | | | Commercial and industrial | | 11,455 | | | 9,332 | | | 7,405 | | | 1,927 | | | 974 | | | Commercial construction | | 3,359 | | | 3,347 | | | 3,347 | | | — | | | — | | | Residential mortgages | | 1,331 | | | 1,229 | | | 1,229 | | | — | | | — | | | Home equity | | 607 | | | 411 | | | 411 | | | — | | | — | | | Consumer | | 44 | | | 44 | | | — | | | 44 | | | 44 | | | Total | | $ | 35,333 | | | $ | 31,878 | | | $ | 29,521 | | | $ | 2,357 | | | $ | 1,049 | |
The following table presents the average recorded investment in impaired loans by portfolio classification and the related interest recognized during the year ends indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2020 | | December 31, 2019 | | December 31, 2018 | | (Dollars in thousands) | | Average recorded investment | | Interest income (loss) recognized | | Average recorded investment | | Interest income recognized | | Average recorded investment | | Interest income recognized | | Commercial real estate | | $ | 19,606 | | | $ | 138 | | | $ | 17,033 | | | $ | 509 | | | $ | 13,971 | | | $ | 385 | | | Commercial and industrial | | 8,639 | | | 168 | | | 11,135 | | | 385 | | | 11,801 | | | 373 | | | Commercial construction | | 5,991 | | | 22 | | | 2,158 | | | 81 | | | 1,691 | | | 93 | | | SBA paycheck protection program | | — | | | — | | | — | | | — | | | — | | | — | | | Residential mortgages | | 854 | | | 8 | | | 1,024 | | | 18 | | | 644 | | | — | | | Home equity | | 410 | | | (1) | | | 447 | | | — | | | 498 | | | — | | | Consumer | | 36 | | | 2 | | | 28 | | | — | | | 56 | | | — | | | Total | | $ | 35,536 | | | $ | 337 | | | $ | 31,825 | | | $ | 993 | | | $ | 28,661 | | | $ | 851 | |
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| Troubled Debt Restructurings on Financing Receivables |
Loans modified as TDRs during the years indicated, by portfolio classification, are detailed below: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2020 | | December 31, 2019 | | (Dollars in thousands) | | Number of restructurings | | Pre-modification outstanding recorded investment | | Post-modification outstanding recorded investment | | Number of restructurings | | Pre-modification outstanding recorded investment | | Post-modification outstanding recorded investment | | Commercial real estate | | 3 | | | $ | 1,858 | | | $ | 1,838 | | | 3 | | | $ | 2,047 | | | $ | 1,620 | | | Commercial and industrial | | 5 | | | 976 | | | 344 | | | 11 | | | 505 | | | 319 | | | Commercial construction | | 6 | | | 4,754 | | | 2,765 | | | — | | | — | | | — | | | SBA paycheck protection program | | — | | | — | | | — | | | — | | | — | | | — | | | Residential mortgages | | — | | | — | | | — | | | 1 | | | 315 | | | 311 | | | Home equity | | 1 | | | 167 | | | 167 | | | — | | | — | | | — | | | Consumer | | 1 | | | 1 | | | — | | | 3 | | | 34 | | | 31 | | | Total | | 16 | | | $ | 7,756 | | | $ | 5,114 | | | 18 | | | $ | 2,901 | | | $ | 2,281 | |
Payment defaults by portfolio classification, during the years indicated, on loans modified as TDRs within the preceding twelve months are detailed below: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2020 | | December 31, 2019 | | (Dollars in thousands) | | Number of TDRs that defaulted | | Post-modification outstanding recorded investment | | Number of TDRs that defaulted | | Post-modification outstanding recorded investment | | Commercial real estate | | 3 | | | $ | 1,838 | | | 1 | | | $ | 1,400 | | | Commercial and industrial | | 2 | | | 172 | | | 3 | | | 79 | | | Commercial construction | | 4 | | | 1,798 | | | — | | | — | | | | | | | | | | | | Residential mortgages | | — | | | — | | | 1 | | | 311 | | | Home equity | | 1 | | | 168 | | | — | | | — | | | Consumer | | — | | | — | | | 1 | | | 4 | | | Total | | 10 | | | $ | 3,976 | | | 6 | | | $ | 1,794 | |
The following table sets forth the post modification balances of TDRs listed by type of modification for TDRs that occurred during the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2020 | | December 31, 2019 | | (Dollars in thousands) | | Number of
restructurings | | Amount | | Number of
restructurings | | Amount | | | | | | | | | | | Extended maturity date | | 2 | | | $ | 150 | | | — | | | $ | — | | | Temporary payment reduction and payment re-amortization of remaining principal over extended term | | 10 | | | 3,316 | | | 10 | | | 112 | | | Temporary interest-only payment plan | | — | | | — | | | 4 | | 400 | | | Forbearance of post default rights | | 4 | | | 1,648 | | | | | | | Other payment concessions | | — | | | — | | | 4 | | | 1,769 | | | Total | | 16 | | | $ | 5,114 | | | 18 | | | $ | 2,281 | | | Amount of specific reserves included in the allowance for loan losses associated with TDRs listed above | | | | $ | 386 | | | | | $ | 320 | |
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| Allowance for Credit Losses on Financing Receivables |
Changes in the allowance for loan losses for the years ended December 31, 2020, 2019 and 2018 are summarized as follows: | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | 2020 | | 2019 | | 2018 | | Balance at beginning of year | | $ | 33,614 | | | $ | 33,849 | | | $ | 32,915 | | | Provision | | 12,499 | | | 1,180 | | | 2,250 | | | Recoveries | | 346 | | | 778 | | | 431 | | | Less: Charge-offs | | 1,894 | | | 2,193 | | | 1,747 | | | Balance at end of year | | $ | 44,565 | | | $ | 33,614 | | | $ | 33,849 | |
Changes in the allowance for loan losses by portfolio classification for the year ended December 31, 2020 are presented below: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | Commercial Real Estate | | Commercial and Industrial | | Commercial Construction | | Residential Mortgage | | Home Equity | | Consumer | | Total | | Beginning Balance | | $ | 18,338 | | | $ | 9,129 | | | $ | 4,149 | | | $ | 1,195 | | | $ | 536 | | | $ | 267 | | | $ | 33,614 | | | Provision | | 8,417 | | | 683 | | | 3,280 | | | 335 | | | (114) | | | (102) | | | 12,499 | | | Recoveries | | — | | | 265 | | | — | | | — | | | 45 | | | 36 | | | 346 | | | Less: Charge-offs | | — | | | 561 | | | 1,300 | | | — | | | — | | | 33 | | | 1,894 | | | Ending Balance | | $ | 26,755 | | | $ | 9,516 | | | $ | 6,129 | | | $ | 1,530 | | | $ | 467 | | | $ | 168 | | | $ | 44,565 | | | | | | | | | | | | | | | | | | Ending allowance balance: | | | | | | | | | | | | | | | | Allocated to loans individually evaluated for impairment | | $ | 3,454 | | | $ | 2,713 | | | $ | — | | | $ | — | | | $ | — | | | $ | 18 | | | $ | 6,185 | | | Allocated to loans collectively evaluated for impairment | | $ | 23,301 | | | $ | 6,803 | | | $ | 6,129 | | | $ | 1,530 | | | $ | 467 | | | $ | 150 | | | $ | 38,380 | |
Changes in the allowance for loan losses by portfolio classification for the year ended December 31, 2019 are presented below: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | Commercial Real Estate | | Cmml and Industrial | | Commercial Construction | | Residential Mortgage | | Home Equity | | Consumer | | Total | | Beginning Balance | | $ | 18,014 | | | $ | 10,493 | | | $ | 3,307 | | | $ | 1,160 | | | $ | 629 | | | $ | 246 | | | $ | 33,849 | | | Provision | | 324 | | | (29) | | | 842 | | | 35 | | | (102) | | | 110 | | | 1,180 | | | Recoveries | | — | | | 734 | | | — | | | — | | | 9 | | | 35 | | | 778 | | | Less: Charge-offs | | — | | | 2,069 | | | — | | | — | | | — | | | 124 | | | 2,193 | | | Ending Balance | | $ | 18,338 | | | $ | 9,129 | | | $ | 4,149 | | | $ | 1,195 | | | $ | 536 | | | $ | 267 | | | $ | 33,614 | | | | | | | | | | | | | | | | | | Ending allowance balance: | | | | | | | | | | | | | | Allocated to loans individually evaluated for impairment | | $ | 31 | | | $ | 974 | | | $ | — | | | $ | — | | | $ | — | | | $ | 44 | | | $ | 1,049 | | | Allocated to loans collectively evaluated for impairment | | $ | 18,307 | | | $ | 8,155 | | | $ | 4,149 | | | $ | 1,195 | | | $ | 536 | | | $ | 223 | | | $ | 32,565 | |
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