Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2019

The following is a rollforward of the Bank’s allowance for loan losses for the years ended December 31:

(dollars in thousands)	Beginning Balance		Provision for Loan Losses			Charge-offs			Recoveries		Ending Balance
2019:
Real estate loans:
Residential properties	$	9,216	$	(793	)	$	—		$	—	$	8,423
Commercial properties		4,547		(381	)		—			—		4,166
Land and construction		391		182			—			—		573
Commercial and industrial loans		4,628		3,653			(2,687	)		1,854		7,448
Consumer loans		218		(24	)		(5	)		1		190
Total	$	19,000	$	2,637		$	(2,692	)	$	1,855	$	20,800
2018:
Real estate loans:
Residential properties	$	9,715	$	(499	)	$	—		$	—	$	9,216
Commercial properties		4,399		359			(211	)		—		4,547
Land and construction		395		(4	)		—			—		391
Commercial and industrial loans		3,624		4,413			(3,978	)		569		4,628
Consumer loans		267		(49	)		—			—		218
Total	$	18,400	$	4,220		$	(4,189	)	$	569	$	19,000
2017:
Real estate loans:
Residential properties	$	6,669	$	3,046		$	—		$	—	$	9,715
Commercial properties		2,983		1,416			—			—		4,399
Land and construction		233		162			—			—		395
Commercial and industrial loans		5,227		(1,841	)		—			238		3,624
Consumer loans		288		(21	)		—			—		267
Total	$	15,400	$	2,762		$	—		$	238	$	18,400

Balance in Allowance for Loan Losses and Recorded Investment in Loans by Impairment

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by impairment method as of December 31:

	Allowance for Loan Losses								Unaccreted Credit Component Other Loans
	Evaluated for Impairment				Purchased Impaired		Total
(dollars in thousands)	Individually		Collectively		Purchased Impaired		Total
2019:
Allowance for loan losses:
Real estate loans:
Residential properties	$	—	$	8,423	$	—	$	8,423	$	1,013
Commercial properties		107		4,059		—		4,166		1,048
Land		—		573		—		573		6
Commercial and industrial loans		763		6,685		—		7,448		277
Consumer loans		—		190		—		190		1
Total	$	870	$	19,930	$	—	$	20,800	$	2,345
Loans:
Real estate loans:
Residential properties	$	2,897	$	3,012,203	$	—	$	3,015,100	$	189,339
Commercial properties		6,689		824,026		3,327		834,042		201,370
Land		—		69,476		781		70,257		28,660
Commercial and industrial loans		9,316		590,489		408		600,213		24,143
Consumer loans		—		16,273		—		16,273		253
Total	$	18,902	$	4,512,467	$	4,516	$	4,535,885	$	443,765
2018:
Allowance for loan losses:
Real estate loans:
Residential properties	$	—	$	9,216	$	—	$	9,216	$	1,724
Commercial properties		126		4,421		—		4,547		1,779
Land		—		391		—		391		84
Commercial and industrial loans		290		4,338		—		4,628		633
Consumer loans		—		218		—		218		3
Total	$	416	$	18,584	$	—	$	19,000	$	4,223
Loans:
Real estate loans:
Residential properties	$	651	$	2,861,112	$	—	$	2,861,763	$	241,698
Commercial properties		2,871		860,835		5,463		869,169		275,516
Land		697		78,681		809		80,187		41,132
Commercial and industrial loans		8,559		440,437		809		449,805		61,183
Consumer loans		—		22,699		—		22,699		366
Total	$	12,778	$	4,263,764	$	7,081	$	4,283,623	$	619,895

Risk Category of Loans by Class of Loans

Based on the most recent analysis performed, the risk category of loans by class of loans is as follows as of December 31:

(dollars in thousands)	Pass		Special Mention		Substandard		Impaired		Total
2019:
Real estate loans:
Residential properties	$	3,012,203	$	—	$	—	$	2,897	$	3,015,100
Commercial properties		821,425		679		5,249		6,689		834,042
Land		69,476		—		781		—		70,257
Commercial and industrial loans		579,153		8,202		3,542		9,316		600,213
Consumer loans		16,273		—		—		—		16,273
Total	$	4,498,530	$	8,881	$	9,572	$	18,902	$	4,535,885
2018:
Real estate loans:
Residential properties	$	2,857,666	$	3,446	$	—	$	651	$	2,861,763
Commercial properties		845,672		13,024		7,602		2,871		869,169
Land		78,681		—		809		697		80,187
Commercial and industrial loans		431,751		7,723		1,772		8,559		449,805
Consumer loans		22,699		—		—		—		22,699
Total	$	4,236,469	$	24,193	$	10,183	$	12,778	$	4,283,623

Individual Evaluation of Impaired Loans and Related Allowance

Impaired loans evaluated individually and any related allowance is as follows as of December 31:

	With No Allowance Recorded				With an Allowance Recorded
(dollars in thousands)	Unpaid Principal Balance		Recorded Investment		Unpaid Principal Balance		Recorded Investment		Related Allowance
2019:
Real estate loans:
Residential properties	$	2,970	$	2,897	$	—	$	—	$	—
Commercial properties		5,683		5,456		1,188		1,188		107
Land		—		—		—		—		—
Commercial and industrial loans		6,485		5,708		3,764		3,653		763
Total	$	15,138	$	14,061	$	4,952	$	4,841	$	870
2018:
Real estate loans:
Residential properties	$	651	$	651	$	—	$	—	$	—
Commercial properties		1,607		1,607		1,264		1,264		126
Land		697		697		—		—		—
Commercial and industrial loans		6,543		6,543		2,016		2,016		290
Total	$	9,498	$	9,498	$	3,280	$	3,280	$	416

Weighted Average Annualized Balance of Recorded Investment and Interest Income on Impaired Loans

The weighted average annualized average balance of the recorded investment for impaired loans, beginning from when the loan became impaired, and any interest income recorded on impaired loans after they became impaired is as follows for the years ending December 31:

	2019				2018				2017
(dollars in thousands)	Average Recorded Investment		Interest Income after Impairment		Average Recorded Investment		Interest Income after Impairment		Average Recorded Investment		Interest Income after Impairment
Real estate loans:
Residential properties	$	1,765	$	13	$	276	$	—	$	1,323	$	20
Commercial properties		8,889		341		3,459		90		2,403		50
Land		523		—		—		—		—		—
Commercial and industrial loans		10,608		11		9,117		—		5,503		5
Consumer loans		—		—		—		—		—		—
Total	$	21,785	$	365	$	12,852	$	90	$	9,229	$	75