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Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2020

Financing Receivable, Allowance for Credit Loss [Line Items]

Schedule of Composition of Loan Portfolio

The following table summarizes the composition of our loan portfolio. Total gross loans are recorded net of deferred loan fees and costs, which totaled $3.6 million as of June 30, 2020 and $3.3 million as of December 31, 2019.


	June 30, 2020						December 31, 2019
(dollars in thousands)	Amount			% of Total			Amount			% of Total
Commercial
Owner occupied RE	$	420,858			20.7	%	$	407,851			21.0	%
Non-owner occupied RE		554,566			27.2	%		501,878			25.8	%
Construction		71,761			3.5	%		80,486			4.1	%
Business		310,212			15.2	%		308,123			15.9	%
Total commercial loans		1,357,397			66.6	%		1,298,338			66.8	%
Consumer
Real estate		437,742			21.5	%		398,245			20.5	%
Home equity		173,739			8.5	%		179,738			9.3	%
Construction		45,629			2.3	%		41,471			2.1	%
Other		22,294			1.1	%		25,733			1.3	%
Total consumer loans		679,404			33.4	%		645,187			33.2	%
Total gross loans, net of deferred fees		2,036,801			100.0	%		1,943,525			100.0	%
Less—allowance for loan losses		(31,602	)					(16,642	)
Total loans, net	$	2,005,199					$	1,926,883

Schedule of Loan Maturity Distribution by Type and Related Interest Rate

The information in the following tables summarizes the loan maturity distribution by type and related interest rate characteristics based on the contractual maturities of individual loans, including loans which may be subject to renewal at their contractual maturity. Renewal of such loans is subject to review and credit approval, as well as modification of terms upon maturity. Actual repayments of loans may differ from the maturities reflected below, because borrowers have the right to prepay obligations with or without prepayment penalties.


	June 30, 2020
			After one
	One year		but within		After five
(dollars in thousands)	or less		five years		years		Total
Commercial
Owner occupied RE	$	31,396		147,219		242,243		420,858
Non-owner occupied RE		59,676		306,178		188,712		554,566
Construction		8,568		32,297		30,896		71,761
Business		84,691		147,433		78,088		310,212
Total commercial loans		184,331		633,127		539,939		1,357,397
Consumer
Real estate		16,360		66,357		355,025		437,742
Home equity		8,232		25,853		139,654		173,739
Construction		9,067		1,317		35,245		45,629
Other		5,507		12,587		4,200		22,294
Total consumer loans		39,166		106,114		534,124		679,404
Total gross loans, net of deferred fees	$	223,497		739,241		1,074,063		2,036,801
Loans maturing after one year with:
Fixed interest rates							$	1,455,803
Floating interest rates								357,501


	December 31, 2019
			After one
	One year		but within		After five
(dollars in thousands)	or less		five years		years		Total
Commercial
Owner occupied RE	$	40,476		147,945		219,430		407,851
Non-owner occupied RE		55,187		267,879		178,812		501,878
Construction		31,035		19,278		30,173		80,486
Business		84,452		146,051		77,620		308,123
Total commercial loans		211,150		581,153		506,035		1,298,338
Consumer
Real estate		16,663		82,445		299,137		398,245
Home equity		9,921		25,828		143,989		179,738
Construction		13,405		1,222		26,844		41,471
Other		6,422		15,022		4,289		25,733
Total consumer		46,411		124,517		474,259		645,187
Total gross loan, net of deferred fees	$	257,561		705,670		980,294		1,943,525
Loans maturing after one year with:
Fixed interest rates							$	1,310,744
Floating interest rates								375,220

Schedule of Nonperforming Assets, Including Nonaccruing TDRs

Following is a summary of our nonperforming assets, including nonaccruing TDRs.


(dollars in thousands)	June 30, 2020			December 31, 2019
Commercial
Owner occupied RE	$	-			-
Non-owner occupied RE		2,428			188
Construction		-			-
Business		229			235
Consumer
Real estate		1,324			1,829
Home equity		360			431
Construction		-			-
Other		-			-
Nonaccruing troubled debt restructurings		4,669			4,111
Total nonaccrual loans, including nonaccruing TDRs		9,010			6,794
Other real estate owned		-			-
Total nonperforming assets	$	9,010			6,794
Nonperforming assets as a percentage of:
Total assets		0.36	%		0.30	%
Gross loans		0.44	%		0.35	%
Total loans over 90 days past due	$	4,008			2,038
Loans over 90 days past due and still accruing		-			-
Accruing troubled debt restructurings		7,332			5,219

Schedule of Key Information for Impaired Loans

The table below summarizes key information for impaired loans. The Company’s impaired loans include loans on nonaccrual status and loans modified in a TDR, whether on accrual or nonaccrual status. These impaired loans may have estimated impairment which is included in the allowance for loan losses. The Company’s commercial and consumer impaired loans are evaluated individually to determine the related allowance for loan losses.


			June 30, 2020
			Recorded investment
					Impaired loans		Impaired loans
	Unpaid				with no related		with related		Related
	Principal		Impaired		allowance for		allowance for		allowance for
(dollars in thousands)	Balance		loans		loan losses		loan losses		loan losses
Commercial
Owner occupied RE	$	2,786		2,722		2,268		454		76
Non-owner occupied RE		6,156		5,616		2,333		3,283		566
Construction		-		-		-		-		-
Business		2,618		2,529		305		2,224		814
Total commercial		11,560		10,867		4,906		5,961		1,456
Consumer
Real estate		3,059		3,048		1,986		1,062		369
Home equity		2,336		2,286		2,012		274		160
Construction		-		-		-		-		-
Other		141		141		-		141		14
Total consumer		5,536		5,475		3,998		1,477		543
Total	$	17,096		16,342		8,904		7,438		1,999


			December 31, 2019
			Recorded investment
					Impaired loans		Impaired loans
	Unpaid				with no related		with related		Related
	Principal		Impaired		allowance for		allowance for		allowance for
(dollars in thousands)	Balance		loans		loan losses		loan losses		loan losses
Commercial
Owner occupied RE	$	2,791		2,726		2,270		456		75
Non-owner occupied RE		4,512		4,051		2,419		1,632		465
Construction		-		-		-		-		-
Business		1,620		1,531		558		973		452
Total commercial		8,923		8,308		5,247		3,061		992
Consumer
Real estate		2,727		2,720		1,638		1,082		364
Home equity		885		838		459		379		66
Construction		-		-		-		-		-
Other		147		147		-		147		16
Total consumer		3,759		3,705		2,097		1,608		446
Total	$	12,682		12,013		7,344		4,669		1,438

Schedule of Average Recorded Investment and Interest Income Recognized on Impaired Loans

The following table provides the average recorded investment in impaired loans and the amount of interest income recognized on impaired loans after impairment by portfolio segment and class.


	Three months ended June 30, 2020					Three months ended June 30, 2019
	Average		Recognized		Average		Recognized
	recorded		interest		recorded		interest
(dollars in thousands)	investment		income		investment		income
Commercial
Owner occupied RE	$	2,722		14		3,116		44
Non-owner occupied RE		6,078		39		2,544		41
Construction		-		-		-		-
Business		2,534		19		2,728		37
Total commercial		11,334		72		8,388		122
Consumer
Real estate		3,052		15		2,622		20
Home equity		2,287		5		1,659		21
Construction		-		-		-		-
Other		142		1		155		1
Total consumer		5,481		21		4,436		42
Total	$	16,815		93		12,824		164


	Six months ended					Six months ended				Year ended
	June 30, 2020					June 30, 2019				December 31, 2019
	Average		Recognized		Average		Recognized		Average		Recognized
	recorded		interest		recorded		interest		recorded		interest
(dollars in thousands)	investment		income		investment		income		investment		income
Commercial
Owner occupied RE	$	2,723		33		3,123		79		2,739		128
Non-owner occupied RE		6,098		102		2,565		85		4,161		255
Construction		-		-		-		-		-		-
Business		2,545		47		2,700		77		1,582		79
Total commercial		11,366		182		8,388		241		8,482		462
Consumer
Real estate		3,057		40		2,633		45		2,771		131
Home equity		2,288		17		1,670		51		853		42
Construction		-		-		-		-		-		-
Other		144		2		156		2		153		5
Total consumer		5,489		59		4,459		98		3,777		178
Total	$	16,855		241		12,847		339		12,259		640

Schedule of Allowance for Loan Losses by Commercial and Consumer Portfolio Segments

The following table summarizes the activity related to the allowance for loan losses by commercial and consumer portfolio segments:


	Three months ended June 30, 2020
	Commercial										Consumer
	Owner		Non-owner
	occupied		occupied								Real		Home
(dollars in thousands)	RE		RE			Construction		Business			Estate		equity		Construction		Other		Total
Balance, beginning of period	$	4,005		5,794			694		4,714			4,606		1,896		415		338		22,462
Provision for loan losses		1,795		3,909			283		1,282			1,925		745		200		61		10,200
Loan charge-offs		-		(912	)		-		(170	)		-		-		-		-		(1,082	)
Loan recoveries		-		-			-		15			7		-		-		-		22
Net loan charge-offs		-		(912	)		-		(155	)		7		-		-		-		(1,060	)
Balance, end of period	$	5,800		8,791			977		5,841			6,538		2,641		615		399		31,602
Net charge-offs to average loans (annualized)																				0.24	%
Allowance for loan losses to gross loans																				1.55	%
Allowance for loan losses to nonperforming loans																				350.74	%


	Three months ended June 30, 2019
	Commercial												Consumer
(dollars in thousands)	Owner occupied RE			Non-owner occupied RE			Construction			Business			Real Estate		Home equity			Construction		Other			Total
Balance, beginning of period	$	2,783			3,886			572			3,796			3,041		1,410			282		281			16,051
Provision for loan losses		135			143			(3	)		(181	)		49		98			36		23			300
Loan charge-offs		(110	)		(13	)		-			-			-		(100	)		-		(14	)		(237	)
Loan recoveries		-			-			-			8			14		1			-		7			30
Net loan charge-offs		(110	)		(13	)		-			8			14		(99	)		-		(7	)		(207	)
Balance, end of period	$	2,808			4,016			569			3,623			3,104		1,409			318		297			16,144
Net charge-offs to average loans (annualized)																								0.05	%
Allowance for loan losses to gross loans																								0.89	%
Allowance for loan losses to nonperforming loans																								277.92	%

	Six months ended June 30, 2020
	Commercial							Consumer
(dollars in thousands)	Owner occupied RE		Non-owner occupied RE		Construction	Business		Real Estate	Home equity		Construction		Other		Total
Balance, beginning of period	$	2,835	4,304		541	3,692		3,278		1,447		268	277			16,642
Provision for loan losses		2,965	5,620		436	2,288		3,251		1,126		347	167			16,200
Loan charge-offs		-	(1,133	)	-	(170	)	-		-		-	(45	)		(1,348	)
Loan recoveries		-	-		-	31		9		68		-	-			108
Net loan charge-offs		-	(1,133	)	-	(139	)	9		68		-	(45	)		(1,240	)
Balance, end of period	$	5,800	8,791		977	5,841		6,538		2,641		615	399			31,602
Net charge-offs to average loans (annualized)																0.12	%

	Six months ended June 30, 2019
	Commercial												Consumer
	Owner occupied RE			Non-owner occupied RE			Construction			Business		Real Estate			Home equity		Construction		Other			Total
Balance, beginning of period	$	2,726			3,811			615		3,616			3,081		1,348			275		290			15,762
Provision for loan losses		192			217			(46	)	(10	)		(6	)	160			43		50			600
Loan charge-offs		(110	)		(14	)		-		-			-		(100	)		-		(53	)		(277	)
Loan recoveries		-			2			-		17			29		1			-		10			59
Net loan charge-offs		(110	)		(12	)		-		17			29		(99	)		-		(43	)		(218	)
Balance, end of period	$	2,808			4,016			569		3,623			3,104		1,409			318		297			16,144
Net charge-offs to average loans (annualized)																							0.03	%

Schedule of Allowance for Loan Losses and Recorded Investment in Loans by Impairment

The following table disaggregates the allowance for loan losses and recorded investment in loans by impairment methodology.


	June 30, 2020
	Allowance for loan losses				Recorded investment in loans
(dollars in thousands)	Commercial		Consumer	Total	Commercial	Consumer	Total
Individually evaluated	$	1,456	543	1,999	10,867	5,475	16,342
Collectively evaluated		19,953	9,650	29,603	1,346,530	673,929	2,020,459
Total	$	21,409	10,193	31,602	1,357,397	679,404	2,036,801


	December 31, 2019
	Allowance for loan losses				Recorded investment in loans
(dollars in thousands)	Commercial		Consumer	Total	Commercial	Consumer	Total
Individually evaluated	$	992	446	1,438	8,308	3,705	12,013
Collectively evaluated		10,380	4,824	15,204	1,290,030	641,482	1,931,512
Total	$	11,372	5,270	16,642	1,298,338	645,187	1,943,525

Consumer Loan [Member]

Financing Receivable, Allowance for Credit Loss [Line Items]

Summary of breakdown of outstanding loans by risk category

The tables below provide a breakdown of outstanding consumer loans by risk category.


	June 30, 2020
(dollars in thousands)	Real estate		Home equity		Construction		Other		Total
Pass	$	431,688		168,735		45,629		22,003		668,055
Special mention		1,949		1,330		-		251		3,530
Substandard		4,105		3,674		-		40		7,819
Doubtful		-		-		-		-		-
	$	437,742		173,739		45,629		22,294		679,404


	December 31, 2019
(dollars in thousands)	Real estate		Home equity		Construction		Other		Total
Pass	$	392,572		176,532		41,471		25,421		635,996
Special mention		2,267		775		-		261		3,303
Substandard		3,406		2,431		-		51		5,888
Doubtful		-		-		-		-		-
	$	398,245		179,738		41,471		25,733		645,187

Summary of outstanding commercial and consumer loans which include loans on nonaccrual by past due status

The following tables provide past due information for outstanding consumer loans and include loans on nonaccrual status as well as accruing TDRs.


	June 30, 2020
(dollars in thousands)	Real estate		Home equity		Construction		Other		Total
Current	$	436,975		171,810		45,629		22,279		676,693
30-59 days past due		-		1,442		-		6		1,448
60-89 days past due		253		190		-		9		452
Greater than 90 Days		514		297		-		-		811
	$	437,742		173,739		45,629		22,294		679,404


	December 31, 2019
(dollars in thousands)	Real estate		Home equity		Construction		Other		Total
Current	$	396,445		179,051		41,471		25,650		642,617
30-59 days past due		799		369		-		83		1,251
60-89 days past due		-		118		-		-		118
Greater than 90 Days		1,001		200		-		-		1,201
	$	398,245		179,738		41,471		25,733		645,187

Commercial Loan [Member]

Financing Receivable, Allowance for Credit Loss [Line Items]

Summary of breakdown of outstanding loans by risk category

The tables below provide a breakdown of outstanding commercial loans by risk category.


	June 30, 2020
	Owner		Non-owner
(dollars in thousands)	occupied RE		occupied RE		Construction		Business		Total
Pass	$	417,254		546,801		71,761		304,497		1,340,313
Special mention		1,305		1,226		-		2,254		4,785
Substandard		2,299		6,539		-		3,461		12,299
Doubtful		-		-		-		-		-
	$	420,858		554,566		71,761		310,212		1,357,397


	December 31, 2019
	Owner		Non-owner
(dollars in thousands)	occupied RE		occupied RE		Construction		Business		Total
Pass	$	404,237		492,941		80,486		301,504		1,279,168
Special mention		1,312		744		-		3,108		5,164
Substandard		2,302		8,193		-		3,511		14,006
Doubtful		-		-		-		-		-
	$	407,851		501,878		80,486		308,123		1,298,338

Summary of outstanding commercial and consumer loans which include loans on nonaccrual by past due status

The following tables provide past due information for outstanding commercial loans and include loans on nonaccrual status as well as accruing TDRs.


	June 30, 2020
	Owner		Non-owner
(dollars in thousands)	occupied RE		occupied RE		Construction		Business		Total
Current	$	420,006		552,138		71,761		309,512		1,353,417
30-59 days past due		-		-		-		482		482
60-89 days past due		301		-		-		-		301
Greater than 90 Days		551		2,428		-		218		3,197
	$	420,858		554,566		71,761		310,212		1,357,397


	December 31, 2019
	Owner		Non-owner
(dollars in thousands)	occupied RE		occupied RE		Construction		Business		Total
Current	$	406,594		501,676		80,486		307,710		1,296,466
30-59 days past due		706		151		-		178		1,035
60-89 days past due		-		-		-		-		-
Greater than 90 Days		551		51		-		235		837
	$	407,851		501,878		80,486		308,123		1,298,338