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Loans (Tables)
 6 Months Ended
Jun. 30, 2020
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Loan balances as of June 30, 2020 and December 31, 2019 are summarized in the table below. Categories of loans include:

(in thousands)June 30, 2020December 31, 2019
Commercial loans  
Commercial and industrial$81,687  $96,420  
Owner-occupied commercial real estate(1)
86,897  86,726  
Investor commercial real estate13,286  12,567  
Construction77,591  60,274  
Single tenant lease financing980,292  995,879  
Public finance647,107  687,094  
Healthcare finance380,956  300,612  
Small business lending(1)
118,526  46,945  
Total commercial loans2,386,342  2,286,517  
Consumer loans
Residential mortgage208,728  313,849  
Home equity22,640  24,306  
Other consumer291,632  295,309  
Total consumer loans523,000  633,464  
Total commercial and consumer loans2,909,342  2,919,981  
Net deferred loan origination costs and premiums and discounts on purchased loans and other(2)
64,332  43,566  
Total loans2,973,674  2,963,547  
Allowance for loan losses(24,465) (21,840) 
Net loans$2,949,209  $2,941,707  

(1) As of June 30, 2020, $13.3 million of commercial real estate loan balances were reclassified from small business lending to owner-occupied commercial real estate.
(2) Includes carrying value adjustments of $46.0 million related to terminated interest rate swaps associated with public finance loans as of June 30, 2020 and $21.4 million related to interest rate swaps associated with public finance loans as of December 31, 2019.
Allowance for Credit Losses on Financing Receivables
The following tables present changes in the balance of the ALLL during the three and six months ended June 30, 2020 and 2019. 

(in thousands)Three Months Ended June 30, 2020
Allowance for loan losses:Balance, Beginning of PeriodProvision (Credit) Charged to ExpenseLosses
Charged Off		RecoveriesBalance,
End of Period
Commercial and industrial$1,670  $(141) $(57) $5  $1,477  
Owner-occupied commercial real estate645  201  —  —  846  
Investor commercial real estate128  2  —  —  130  
Construction460  261  —  —  721  
Single tenant lease financing10,755  563  —  —  11,318  
Public finance1,483  59  —  —  1,542  
Healthcare finance4,318  1,187  (743) —  4,762  
Small business lending265  (20) —  6  251  
Residential mortgage500  36  —  3  539  
Home equity53  (4) —  2  51  
Other consumer2,580  347  (216) 117  2,828  
Total$22,857  $2,491  $(1,016) $133  $24,465  



Six Months Ended June 30, 2020
Allowance for loan losses:Balance, Beginning of PeriodProvision (Credit) Charged to ExpenseLosses
Charged Off		RecoveriesBalance,
End of Period
Commercial and industrial$1,521  $205  $(254) $5  $1,477  
Owner-occupied commercial real estate561  285  —  —  846  
Investor commercial real estate109  21  —  —  130  
Construction380  341  —  —  721  
Single tenant lease financing11,175  143  —  —  11,318  
Public finance1,580  (38) —  —  1,542  
Healthcare finance3,247  2,258  (743) —  4,762  
Small business lending54  183  —  14  251  
Residential mortgage657  (107) (15) 4  539  
Home equity46  —  —  5  51  
Other consumer2,510  661  (502) 159  2,828  
Total$21,840  $3,952  $(1,514) $187  $24,465  
(in thousands)Three Months Ended June 30, 2019
Allowance for loan losses:Balance, Beginning of PeriodProvision (Credit) Charged to ExpenseLosses
Charged Off		RecoveriesBalance,
End of Period
Commercial and industrial$1,351  $444  $—  $—  $1,795  
Owner-occupied commercial real estate847  (223) —  —  624  
Investor commercial real estate103  66  —  —  169  
Construction267  35  —  —  302  
Single tenant lease financing9,368  293  —  —  9,661  
Public finance1,650  113  —  —  1,763  
Healthcare finance1,731  562  —  —  2,293  
Small business lending93  36  —  —  129  
Residential mortgage1,044  (383) —  1  662  
Home equity49  (5) —  4  48  
Other consumer2,338  451  (337) 78  2,530  
Total$18,841  $1,389  $(337) $83  $19,976  


Six Months Ended June 30, 2019
Allowance for loan losses:Balance, Beginning of PeriodProvision (Credit) Charged to ExpenseLosses
Charged Off		RecoveriesBalance,
End of Period
Commercial and industrial$1,384  $523  $(112) $—  $1,795  
Owner-occupied commercial real estate891  (267) —  —  624  
Investor commercial real estate61  108  —  —  169  
Construction251  51  —  —  302  
Single tenant lease financing8,827  834  —  —  9,661  
Public finance1,670  93  —  —  1,763  
Healthcare finance1,264  1,029  —  —  2,293  
Small business lending95  34  —  —  129  
Residential mortgage1,079  (419) —  2  662  
Home equity53  (11) —  6  48  
Other consumer2,321  699  (654) 164  2,530  
Total$17,896  $2,674  $(766) $172  $19,976  
Allowance For Credit Losses On Financing Receivables Portfolio Segment
The following tables present the recorded investment in loans based on portfolio segment and impairment method as of June 30, 2020 and December 31, 2019. 
(in thousands)LoansAllowance for Loan Losses
June 30, 2020Ending Balance:  
Collectively Evaluated for Impairment		Ending Balance:  
Individually Evaluated for Impairment		Ending BalanceEnding Balance:  
Collectively Evaluated for Impairment		Ending Balance:  
Individually Evaluated for Impairment		Ending Balance
Commercial and industrial$80,871  $816  $81,687  $1,368  $109  $1,477  
Owner-occupied commercial real estate82,974  3,922  86,897  846  —  846  
Investor commercial real estate13,286  —  13,286  130  —  130  
Construction77,591  —  77,591  721  —  721  
Single tenant lease financing975,612  4,680  980,292  9,658  1,660  11,318  
Public finance647,107  —  647,107  1,542  —  1,542  
Healthcare finance380,956  —  380,956  4,762  —  4,762  
Small business lending118,526  —  118,526  251  251  
Residential mortgage207,320  1,408  208,728  539  —  539  
Home equity22,640  —  22,640  51  —  51  
Other consumer291,518  115  291,632  2,828  —  2,828  
Total$2,898,401  $10,941  $2,909,342  $22,696  $1,769  $24,465  

(in thousands)LoansAllowance for Loan Losses
December 31, 2019Ending Balance:  
Collectively Evaluated for Impairment		Ending Balance:  
Individually Evaluated for Impairment		Ending BalanceEnding Balance:  
Collectively Evaluated for Impairment		Ending Balance:  
Individually Evaluated for Impairment		Ending Balance
Commercial and industrial$93,520  $2,900  $96,420  $1,412  $109  $1,521  
Owner-occupied commercial real estate81,063  5,663  86,726  561  —  561  
Investor commercial real estate12,567  —  12,567  109  —  109  
Construction60,274  —  60,274  380  —  380  
Single tenant lease financing991,199  4,680  995,879  9,515  1,660  11,175  
Public finance687,094  —  687,094  1,580  —  1,580  
Healthcare finance300,612  —  300,612  3,247  —  3,247  
Small business lending46,945  —  46,945  54  —  54  
Residential mortgage312,714  1,135  313,849  657  —  657  
Home equity24,306  —  24,306  46  —  46  
Other consumer295,266  43  295,309  2,510  —  2,510  
Total$2,905,560  $14,421  $2,919,981  $20,071  $1,769  $21,840  
Financing Receivable Credit Quality Indicators
The following tables present the credit risk profile of the Company’s commercial and consumer loan portfolios based on rating category and payment activity as of June 30, 2020 and December 31, 2019. 
June 30, 2020
(in thousands)PassSpecial MentionSubstandardTotal
Commercial and industrial$77,447  $3,465  $775  $81,687  
Owner-occupied commercial real estate80,389  2,585  3,923  86,897  
Investor commercial real estate13,286  —  —  13,286  
Construction77,591  —  —  77,591  
Single tenant lease financing966,782  8,830  4,680  980,292  
Public finance647,107  —  —  647,107  
Healthcare finance379,899  1,057  —  380,956  
Small business lending118,526  —  —  118,526  
Total commercial loans$2,361,027  $15,937  $9,378  $2,386,342  

June 30, 2020
(in thousands)PerformingNonaccrualTotal
Residential mortgage$207,686  $1,042  $208,728  
Home equity22,640  —  22,640  
Other consumer291,524  108  291,632  
Total consumer loans$521,850  $1,150  $523,000  

December 31, 2019
(in thousands)PassSpecial MentionSubstandardTotal
Commercial and industrial$89,818  $3,973  $2,629  $96,420  
Owner-occupied commercial real estate79,329  3,462  3,935  86,726  
Investor commercial real estate12,567  —  —  12,567  
Construction60,274  —  —  60,274  
Single tenant lease financing983,448  7,751  4,680  995,879  
Public finance687,094  —  —  687,094  
Healthcare finance300,612  —  —  300,612  
Small business lending46,945  —  —  46,945  
Total commercial loans$2,260,087  $15,186  $11,244  $2,286,517  
December 31, 2019
(in thousands)PerformingNonaccrualTotal
Residential mortgage$313,088  $761  $313,849  
Home equity24,306  —  24,306  
Other consumer295,276  33  295,309  
Total consumer loans$632,670  $794  $633,464  
Past Due Financing Receivables
The following tables present the Company’s loan portfolio delinquency analysis as of June 30, 2020 and December 31, 2019. 

June 30, 2020
(in thousands)30-59
Days
Past Due		60-89
Days
Past Due		90 Days 
or More
Past Due		Total 
Past Due		CurrentTotal
Loans		Non-
accrual
Loans		Total Loans
90 Days or
More Past
Due and
Accruing
Commercial and industrial$80  $—  $212  $292  $81,395  $81,687  $299  $—  
Owner-occupied commercial real estate—  —  2,066  2,066  84,831  86,897  2,066  —  
Investor commercial real estate—  —  —  —  13,286  13,286  —  —  
Construction—  —  —  —  77,591  77,591  —  —  
Single tenant lease financing—  —  4,680  4,680  975,612  980,292  4,680  —  
Public finance—  —  —  —  647,107  647,107  —  —  
Healthcare finance—  —  —  —  380,956  380,956  —  —  
Small business lending—  —  —  —  118,526  118,526  —  —  
Residential mortgage—  —  281  281  208,447  208,728  1,042  —  
Home equity—  —  —  —  22,640  22,640  —  —  
Other consumer80  56  25  161  291,471  291,632  108  —  
Total$160  $56  $7,264  $7,480  $2,901,862  $2,909,342  $8,195  $—  

December 31, 2019
(in thousands)30-59
Days
Past Due		60-89
Days
Past Due		90 Days 
or More
Past Due		Total 
Past Due		CurrentTotal
Loans		Non-
accrual
Loans		Total Loans
90 Days or
More Past
Due and
Accruing
Commercial and industrial$15  $96  $122  $233  $96,187  $96,420  $226  $—  
Owner-occupied commercial real estate—  —  464  464  86,262  86,726  464  —  
Investor commercial real estate—  —  —  —  12,567  12,567  —  —  
Construction—  —  —  —  60,274  60,274  —  —  
Single tenant lease financing—  4,680  —  4,680  991,199  995,879  4,680  —  
Public finance—  —  —  —  687,094  687,094  —  —  
Healthcare finance—  —  —  —  300,612  300,612  —  —  
Small business lending54  —  54  46,891  46,945  —  —  
Residential mortgage—  —  1,177  1,177  312,672  313,849  761  416  
Home equity—  —  —  —  24,306  24,306  —  —  
Other consumer240  107  —  347  294,962  295,309  33  —  
Total$309  $4,883  $1,763  $6,955  $2,913,026  $2,919,981  $6,164  $416  
Impaired Financing Receivables
The following table presents the Company’s impaired loans as of June 30, 2020 and December 31, 2019. 
 June 30, 2020December 31, 2019
(in thousands)Recorded
Balance		Unpaid
Principal
Balance		Specific
Allowance		Recorded
Balance		Unpaid
Principal
Balance		Specific
Allowance
Loans without a specific valuation allowance      
Commercial and industrial$613  $672  $—  $2,693  $2,694  $—  
Owner-occupied commercial real estate3,922  3,925  —  5,663  5,665  —  
Residential mortgage1,408  1,498  —  1,135  1,209  —  
Other consumer115  215  —  43  107  —  
Total6,058  6,310  —  9,534  9,675  —  
Loans with a specific valuation allowance      
Commercial and industrial203  240  109  207  244  109  
Single tenant lease financing4,680  4,680  1,660  4,680  4,680  1,660  
Total4,883  4,920  1,769  4,887  4,924  1,769  
Total impaired loans$10,941  $11,230  $1,769  $14,421  $14,599  $1,769  
 
The table below presents average balances and interest income recognized for impaired loans during the three and six months ended June 30, 2020 and 2019.
Three Months EndedSix Months Ended
June 30, 2020June 30, 2019June 30, 2020June 30, 2019
(in thousands)Average
Balance		Interest
Income		Average
Balance		Interest
Income		Average
Balance		Interest
Income		Average
Balance		Interest
Income
Loans without a specific valuation allowance        
Commercial and industrial$594  $18  $4,053  $86  $1,330  $36  $4,376  $167  
Owner-occupied commercial real estate3,923  29  2,723  66  4,573  31  2,464  93  
Small business lending—  —  —  —  
Residential mortgage1,352  —  3,538  —  1,313  —  2,796  —  
Home equity—  —  —  —  —  —  21  —  
Other consumer75  —  83  —  60  —  79  —  
Total5,944  47  10,397  152  7,276  67  9,736  260  
Loans with a specific valuation allowance        
Commercial and industrial204  —  353  —  204  —  177  —  
Single tenant lease financing4,680  —  —  —  4,680  —  —  —  
Total4,884  —  353  —  4,884  —  177  —  
Total impaired loans$10,828  $47  $10,750  $152  $12,160  $67  $9,913  $260