Loans and Credit Quality (Tables)

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Loan Portfolio Segmented by Risk Class

The following table presents total portfolio loans by portfolio segment and class of financing receivable, based on the Company's asset quality rating ("AQR") criteria:

(In Thousands)	Commercial		Real estate construction one-to-four family		Real estate construction other		Real estate term owner occupied		Real estate term non-owner occupied		Real estate term other		Consumer secured by 1st deeds of trust		Consumer other		Total
March 31, 2020
AQR Pass		$417,970		$33,920		$73,507		$135,880		$296,153		$39,915		$15,240		$24,232		$1,036,817
AQR Special Mention	2,117		1,507		—		3,733		17,319		1,190		178		—		26,044
AQR Substandard	14,699		915		—		6,840		—		1,176		87		117		23,834
AQR Doubtful	46		—		—		—		—		—		—		—		46
AQR Loss	—		—		—		—		—		—		69		—		69
Subtotal		$434,832		$36,342		$73,507		$146,453		$313,472		$42,281		$15,574		$24,349		$1,086,810
Less: Unearned origination fees, net of origination costs																	(4,937		)
Total loans																		$1,081,873
December 31, 2019
AQR Pass		$394,107		$34,132		$61,808		$129,959		$295,482		$38,771		$15,860		$24,464		$994,583
AQR Special Mention	2,279		3,337		—		3,828		17,478		2,559		179		—		29,660
AQR Substandard	16,304		1,349		—		5,104		—		1,176		159		121		24,213
Subtotal		$412,690		$38,818		$61,808		$138,891		$312,960		$42,506		$16,198		$24,585		$1,048,456
Less: Unearned origination fees, net of origination costs																	(5,085		)
Total loans																		$1,043,371

Nonaccrual Loans by Segment

Nonaccrual loans at the periods indicated are presented below by segment:

(In  Thousands)	30-59 Days Past Due			60-89 Days Past Due		Greater Than 90 Days Past Due		Current			Total
March 31, 2020
Commercial		$4,285			$308		$3,030		$1,717			$9,340
Real estate construction one-to-four family	—			—		915		—			915
Real estate term owner occupied	1,029			637		1,614		179			3,459
Real estate term other	—			—		1,176		—			1,176
Consumer secured by 1st deeds of trust	—			—		—		67			67
Consumer other	30			—		—		87			117
Total nonperforming loans	5,344			945		6,735		2,050			15,074
Government guarantees on nonaccrual loans	(340		)	—		—		(1,331		)	(1,671		)
Net nonaccrual loans		$5,004			$945		$6,735		$719			$13,403
December 31, 2019
Commercial		$270			$385		$2,862		$5,636			$9,153
Real estate construction one-to-four family	—			—		1,349		—			1,349
Real estate term owner occupied	1,641			—		623		1,225			3,489
Real estate term other	—			—		1,176		—			1,176
Consumer secured by 1st deeds of trust	—			—		—		68			68
Consumer other	26			89		—		6			121
Total nonperforming loans	1,937			474		6,010		6,935			15,356
Government guarantees on nonaccrual loans	(268		)	—		—		(1,137		)	(1,405		)
Net nonaccrual loans		$1,669			$474		$6,010		$5,798			$13,951

Past Due Loans and Nonaccrual Loans

Past due loans and nonaccrual loans at the periods indicated are presented below by segment:

(In Thousands)	30-59 Days Past Due Still Accruing		60-89 Days Past Due Still Accruing		Greater Than 90 Days Still Accruing		Total Past Due		Nonaccrual		Current		Total
March 31, 2020
Commercial		$561		$237		$—		$798		$9,340		$424,694		$434,832
Real estate construction one-to-four family	—		—		—		—		915		35,427		36,342
Real estate construction other	—		—		—		—		—		73,507		73,507
Real estate term owner occupied	2,502		—		—		2,502		3,459		140,492		146,453
Real estate term non-owner occupied	—		—		—		—		—		313,472		313,472
Real estate term other	—		—		—		—		1,176		41,105		42,281
Consumer secured by 1st deed of trust	254		—		—		254		67		15,253		15,574
Consumer other	—		—		—		—		117		24,232		24,349
Subtotal		$3,317		$237		$—		$3,554		$15,074		$1,068,182		$1,086,810
Less: Unearned origination fees,  net of origination costs													(4,937		)
Total														$1,081,873
December 31, 2019
Commercial		$270		$—		$—		$270		$9,153		$403,267		$412,690
Real estate construction one-to-four family	—		—		—		—		1,349		37,469		38,818
Real estate construction other	—		—		—		—		—		61,808		61,808
Real estate term owner occupied	338		—		—		338		3,489		135,064		138,891
Real estate term non-owner occupied	—		—		—		—		—		312,960		312,960
Real estate term other	26		—		—		26		1,176		41,304		42,506
Consumer secured by 1st deed of trust	750		—		—		750		68		15,380		16,198
Consumer other	150		—		—		150		121		24,314		24,585
Subtotal		$1,534		$—		$—		$1,534		$15,356		$1,031,566		$1,048,456
Less: Unearned origination fees,  net of origination costs													(5,085		)
Total														$1,043,371

Impaired Loans

The following table presents information about impaired loans by class as of the periods indicated:

(In Thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
March 31, 2020
With no related allowance recorded
Commercial - AQR substandard		$9,565		$9,762		$—
Real estate construction one-to-four family - AQR substandard	915		915		—
Real estate term owner occupied - AQR substandard	6,840		6,840		—
Real estate term non-owner occupied - AQR pass	177		177		—
Real estate term other - AQR pass	397		397		—
Real estate term other - AQR substandard	1,176		1,176		—
Consumer secured by 1st deeds of trust - AQR pass	121		121		—
Consumer secured by 1st deeds of trust - AQR substandard	87		92		—
Consumer secured by 1st deeds of trust - AQR loss	67		67		—
Consumer other - AQR substandard	87		92		—
Subtotal		$19,432		$19,639		$—

With an allowance recorded
Commercial - AQR substandard	$4,988	$4,988	$682
Subtotal	$4,988	$4,988	$682

Total
Commercial - AQR substandard		$14,553		$14,750		$682
Real estate construction one-to-four family - AQR substandard	915		915		—
Real estate term owner-occupied - AQR substandard	6,840		6,840		—
Real estate term non-owner occupied - AQR pass	177		177		—
Real estate term other - AQR pass	397		397		—
Real estate term other - AQR substandard	1,176		1,176		—
Consumer secured by 1st deeds of trust - AQR pass	121		121		—
Consumer secured by 1st deeds of trust - AQR substandard	87		92		—
Consumer secured by 1st deeds of trust - AQR loss	67		67		—
Consumer other - AQR substandard	87		92		—
Total		$24,420		$24,627		$682

(In Thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
December 31, 2019
With no related allowance recorded
Commercial - AQR substandard		$15,517		$15,582		$—
Real estate construction one-to-four family -AQR substandard	1,349		1,349		—
Real estate term owner occupied - AQR substandard	5,104		5,104		—
Real estate term non-owner occupied - AQR pass	178		178		—
Real estate term other - AQR pass	417		417		—
Real estate term other - AQR substandard	1,176		1,176		—
Consumer secured by 1st deeds of trust - AQR pass	122		122		—
Consumer secured by 1st deeds of trust - AQR substandard	159		163		—
Consumer other - AQR substandard	90		94		—
Subtotal		$24,112		$24,185		$—

With an allowance recorded
Commercial - AQR substandard	$561	$561	$17
Subtotal	$561	$561	$17

Total
Commercial - AQR substandard		$16,078		$16,143		$17
Real estate construction one-to-four family -AQR substandard	1,349		1,349		—
Real estate term owner occupied - AQR substandard	5,104		5,104		—
Real estate term non-owner occupied - AQR pass	178		178		—
Real estate term other - AQR pass	417		417		—
Real estate term other - AQR substandard	1,176		1,176		—
Consumer secured by 1st deeds of trust - AQR pass	122		122		—
Consumer secured by 1st deeds of trust - AQR substandard	159		163		—
Consumer other - AQR substandard	90		94		—
Total		$24,673		$24,746		$17

The following tables summarize our average recorded investment and interest income recognized on impaired loans for the three-month periods ended March 31, 2020 and 2019:

Three Months Ended March 31,	2020						2019
(In Thousands)	Average Recorded Investment		Interest Income Recognized			Average Recorded Investment			Interest Income Recognized
With no related allowance recorded
Commercial - AQR pass		$—			$—			$2,082			$33
Commercial - AQR substandard	8,383			30			16,796			91
Real estate construction one-to-four family - AQR substandard	1,132			—			2,903			—
Real estate term owner occupied- AQR substandard	6,047			28			5,914			34
Real estate term non-owner occupied- AQR pass	177			3			289			5
Real estate term non-owner occupied- AQR substandard	—			—			931			—
Real estate term other - AQR pass	407			7			477			8
Real estate term other - AQR substandard	1,176			—			578			—
Consumer secured by 1st deeds of trust - AQR pass	122			3			128			3
Consumer secured by 1st deeds of trust - AQR substandard	89			2			246			2
Consumer secured by 1st deeds of trust - AQR loss	68			—			—			—
Consumer other - AQR substandard	89			—			—			—
Subtotal		$17,690			$73			$30,344			$176

With an allowance recorded
Commercial - AQR substandard		$5,047		$—		$844		$—
Real estate term other - AQR substandard	—		—		660		—
Consumer secured by 1st deeds of trust - AQR substandard	—		—		217		—
Subtotal		$5,047		$—		$1,721		$—

Total
Commercial - AQR pass		$—		$—		$2,082		$33
Commercial - AQR substandard	13,430		30		17,640		91
Real estate construction one-to-four family - AQR substandard	1,132		—		2,903		—
Real estate term owner-occupied - AQR substandard	6,047		28		5,914		34
Real estate term non-owner occupied - AQR pass	177		3		289		5
Real estate term non-owner occupied - AQR substandard	—		—		931		—
Real estate term other - AQR pass	407		7		477		8
Real estate term other - AQR substandard	1,176		—		1,238		—
Consumer secured by 1st deeds of trust - AQR pass	122		3		128		3
Consumer secured by 1st deeds of trust - AQR substandard	89		2		463		2
Consumer secured by 1st deeds of trust - AQR loss	68		—		—		—
Consumer other - AQR substandard	89		—		—		—
Total Impaired Loans		$22,737		$73		$32,065		$176

Restructured Loans

The following table presents the breakout between newly restructured loans that occurred during the three months ended March 31, 2020 and restructured loans that occurred prior to 2020 that are still included in portfolio loans. As discussed above, the CARES Act provided banks an option to elect to not account for certain loan modifications related to COVID-19 as TDRs as long as the borrowers were not more than 30 days past due as of December 31, 2019. The below disclosed restructurings were not related to COVID-19 modifications:

	Accrual Status		Nonaccrual Status		Total Modifications
(In Thousands)
New Troubled Debt Restructurings
Commercial - AQR substandard		$3,281		$—		$3,281
Subtotal		$3,281		$—		$3,281
Existing Troubled Debt Restructurings		$1,108		$8,237		$9,345
Total		$4,389		$8,237		$12,626

Newly Restructured Loans by Concession

The following tables present newly restructured loans that occurred during the three months ended March 31, 2020, by concession (terms modified):

		March 31, 2020
	Number of Contracts	Rate Modification		Term Modification		Payment Modification		Combination Modification		Total Modifications
(In Thousands)
Pre-Modification Outstanding Recorded Investment:
Commercial - AQR substandard	1		$—		$3,249		$—		$—		$3,249
Total	1		$—		$3,249		$—		$—		$3,249
Post-Modification Outstanding Recorded Investment:
Commercial - AQR substandard	1		$—		$3,281		$—		$—		$3,281
Total	1		$—		$3,281		$—		$—		$3,281

Schedule of Trouble Debt Restructurings That Subsequently Defaulted

The following table presents TDRs that defaulted within twelve months of restructure and defaulted during the three months ended March 31, 2020 and 2019:

		March 31, 2020			March 31, 2019
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
(In  Thousands)
Troubled Debt Restructurings that Subsequently Defaulted:
Commercial - AQR substandard	—		$—	3		$1,146
Real estate term owner occupied - AQR substandard	—	—		2	1,694
Total	—		$—	5		$2,840