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Loans and Allowance for Credit Losses on Loans (Tables)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Receivables [Abstract]    
Composition of Loan Portfolio, Excluding Residential Loans Held for Sale
The composition of the Company’s loan portfolio, excluding residential loans held for sale, was as follows for the dates indicated:
December 31,
(In thousands)20202019
Commercial Loans:
Commercial real estate(1)
$1,369,470 $1,243,397 
Commercial381,494 442,701 
SBA PPP135,095 — 
Total commercial loans1,886,059 1,686,098 
Retail Loans:
Residential real estate1,054,798 1,070,374 
Home equity258,573 312,779 
Consumer20,392 25,772 
Total retail loans1,333,763 1,408,925 
Total loans$3,219,822 $3,095,023 
(1)    Commercial real estate was segmented into non owner-occupied properties and owner-occupied properties upon adoption of CECL, effective January 1, 2020. At December 31, 2020, total commercial real estate - non owner-occupied loans and owner-occupied loans were $1.1 billion and $271.5 million, respectively.
  
Schedule of Loan Balances for Each Portfolio Segment
The loan balances for each portfolio segment presented above are net of their respective net unamortized fair value mark discount on acquired loans and net unamortized loan origination costs for the dates indicated:
December 31,
(In thousands)20202019
Net unamortized fair value mark discount on acquired loans$(1,291)$(2,593)
Net unamortized loan origination costs(1)
856 3,111 
Total$(435)$518 
(1)     The decrease in net unamortized loan origination costs from December 31, 2019 to December 31, 2020, was primarily driven by origination fees capitalized for SBA PPP loans during 2020. As of December 31, 2020, unamortized loan fees on originated SBA PPP loans were $2.2 million.
  
Activity in Allowance for Loan Losses by Portfolio Segment
The following table presents the activity in the ACL on loans at and for the year ended December 31, 2020:
Commercial Real Estate
(In thousands)Non Owner-OccupiedOwner- OccupiedCommercialSBA PPPResidential Real EstateHome EquityConsumerTotal
Beginning balance, December 31, 2019$10,924 $1,490 $3,985 $— $5,842 $2,423 $507 $25,171 
Impact of adopting CECL(1)
(668)(90)1,548 — (1,129)792 (220)233 
Loans charged off(82)(21)(1,130)— (121)(317)(167)(1,838)
Recoveries107 13 572 — 292 33 67 1,084 
Provision (credit) for loan losses11,497 1,440 1,728 69 (1,410)(315)206 13,215 
Ending balance, December 31, 2020$21,778 $2,832 $6,703 $69 $3,474 $2,616 $393 $37,865 
(1)    Effective January 1, 2020, the Company adopted ASU 2016-13, commonly referred to as "CECL." Refer to Note 1 for further details.
The following table presents activity in the allowance for loan losses and select loan information by portfolio segment, under the incurred loss methodology, for the periods indicated:
(In thousands)Commercial Real EstateCommercialResidential Real EstateHome EquityConsumerTotal
At or For the Year Ended December 31, 2019:
Allowance:            
Beginning balance$11,654 $3,957 $6,071 $2,796 $234 $24,712 
Loans charged off(300)(1,238)(462)(412)(301)(2,713)
Recoveries49 225 16 1 19 310 
Provision (credit) for loan losses1,011 1,041 217 38 555 2,862 
Ending balance$12,414 $3,985 $5,842 $2,423 $507 $25,171 
Allowance balance attributable loans:
Individually evaluated for impairment$30 $— $364 $69 $— $463 
Collectively evaluated for impairment12,384 3,985 5,478 2,354 507 24,708 
Total ending allowance$12,414 $3,985 $5,842 $2,423 $507 $25,171 
Loans:            
Individually evaluated for impairment$402 $319 $3,384 $373 $— $4,478 
Collectively evaluated for impairment1,242,995 442,382 1,066,990 312,406 25,772 3,090,545 
Total loan balances$1,243,397 $442,701 $1,070,374 $312,779 $25,772 $3,095,023 
At or For the Year Ended December 31, 2018:
Allowance:            
Beginning balance$11,863 $4,622 $5,086 $2,367 $233 $24,171 
Loans charged off(512)(991)(173)(476)(96)(2,248)
Recoveries28 1,771 90 44 11 1,944 
Provision (credit) for loan losses275 (1,445)1,068 861 86 845 
Ending balance$11,654 $3,957 $6,071 $2,796 $234 $24,712 
Allowance balance attributable loans:
Individually evaluated for impairment$23 $53 $586 $162 $— $824 
Collectively evaluated for impairment11,631 3,904 5,485 2,634 234 23,888 
Total ending allowance$11,654 $3,957 $6,071 $2,796 $234 $24,712 
Loans:            
Individually evaluated for impairment$930 $786 $4,762 $442 $6 $6,926 
Collectively evaluated for impairment1,268,603 414,650 988,104 327,321 20,618 3,019,296 
Total loan balances$1,269,533 $415,436 $992,866 $327,763 $20,624 $3,026,222 
Credit Risk Exposure Indicators by Portfolio Segment
Based on the most recent analysis performed, the risk category of loans by portfolio segment by vintage, reported under the CECL methodology, was as follows as of the period indicated:
(In thousands)20202019201820172016PriorRevolving Loans
Amortized Cost Basis		Revolving Loans
Converted to Term		Total
As of December 31, 2020
Commercial real estate - non owner-occupied      
Risk rating
Pass (Grades 1-6)$138,010 $224,148 $144,552 $119,409 $157,588 $264,253 $— $— $1,047,960 
Special mention (Grade 7)5,739 — — 4,256 3,497 847 — — 14,339 
Substandard (Grade 8)24 125 2,070 405 1,522 31,530 — — 35,676 
Doubtful (Grade 9)— — — — — — — — — 
Total commercial real estate - non owner-occupied143,773 224,273 146,622 124,070 162,607 296,630 — — 1,097,975 
Commercial real estate - owner-occupied      
Risk rating
Pass (Grades 1-6)35,948 29,217 48,312 47,065 25,507 76,098 — — 262,147 
Special mention (Grade 7)— — 4,584 — — 1,513 — — 6,097 
Substandard (Grade 8)— — 891 462 — 1,898 — — 3,251 
Doubtful (Grade 9)— — — — — — — — — 
Total commercial real estate - owner occupied35,948 29,217 53,787 47,527 25,507 79,509 — — 271,495 
Commercial
      
Risk rating
Pass (Grades 1-6)53,966 72,863 40,688 25,478 15,788 51,869 72,425 37,026 370,103 
Special mention (Grade 7)— 22 313 4,924 117 400 — 867 6,643 
Substandard (Grade 8)187 1,012 211 51 42 2,081 65 1,099 4,748 
Doubtful (Grade 9)— — — — — — — — — 
Total commercial54,153 73,897 41,212 30,453 15,947 54,350 72,490 38,992 381,494 
SBA PPP
Risk rating
Pass (Grades 1-6)135,095 — — — — — — — 135,095 
Special mention (Grade 7)— — — — — — — — — 
Substandard (Grade 8)— — — — — — — — — 
Doubtful (Grade 9)— — — — — — — — — 
Total SBA PPP135,095 — — — — — — — 135,095 
Residential Real Estate      
Risk rating
Pass (Grades 1-6)339,834 183,877 119,426 79,159 57,269 266,324 3,028 — 1,048,917 
Special mention (Grade 7)— — — — — 398 — — 398 
Substandard (Grade 8)— — 176 487 — 4,820 — — 5,483 
Doubtful (Grade 9)— — — — — — — — — 
Total residential real estate339,834 183,877 119,602 79,646 57,269 271,542 3,028 — 1,054,798 
Home equity
      
Risk rating
Performing855 9,415 17,281 3,478 1,339 17,664 194,065 12,480 256,577 
Non-performing— — — — — 207 1,241 548 1,996 
Total home equity
855 9,415 17,281 3,478 1,339 17,871 195,306 13,028 258,573 
Consumer
      
Risk rating
Performing6,572 6,525 3,096 1,359 378 1,780 678 — 20,388 
Non-performing— — — — 4 — — — 4 
Total consumer
6,572 6,525 3,096 1,359 382 1,780 678 — 20,392 
Total Loans$716,230 $527,204 $381,600 $286,533 $263,051 $721,682 $271,502 $52,020 $3,219,822 
The following table summarizes credit risk exposure indicators by portfolio segment, under the incurred loss methodology, as of the date indicated:
(In thousands)Commercial Real EstateCommercialResidential Real EstateHome EquityConsumerTotal
December 31, 2019:
Pass (Grades 1 – 6)$1,196,683 $436,537 $1,062,825 $— $— $2,696,045 
Performing— — — 310,653 25,748 336,401 
Special Mention (Grade 7)31,753 2,633 473 — — 34,859 
Substandard (Grade 8)14,961 3,531 7,076 — — 25,568 
Non-performing— — — 2,126 24 2,150 
Total$1,243,397 $442,701 $1,070,374 $312,779 $25,772 $3,095,023 
Loan Aging Analysis by Portfolio Segment (Including Loans Past Due Over Ninety Days and Non Accrual Loans) and Summary of Non Accrual Loans, Which Include Troubled Debt Restructured Loans, and Loans Past Due Over Ninety Days and Accruing
The following is a loan aging analysis by portfolio segment (including loans past due over 90 days and non-accrual loans) and loans past due over 90 days and accruing as of the following dates:
(In thousands)30 – 59 Days Past Due60 – 89 Days Past Due90 Days or Greater Past DueTotal Past DueCurrentTotal Loans OutstandingLoans > 90 Days Past Due and Accruing
December 31, 2020:
Commercial real estate - non owner-occupied$— $50 $173 $223 $1,097,752 $1,097,975 $— 
Commercial real estate - owner-occupied99 — 47 146 271,349 271,495 — 
Commercial430 — 857 1,287 380,207 381,494 — 
SBA PPP— — — — 135,095 135,095 — 
Residential real estate1,406 1,103 2,535 5,044 1,049,754 1,054,798 — 
Home equity335 173 1,416 1,924 256,649 258,573 — 
Consumer92 67 4 163 20,229 20,392 — 
Total$2,362 $1,393 $5,032 $8,787 $3,211,035 $3,219,822 $— 
December 31, 2019:
Commercial real estate$267 $1,720 $544 $2,531 $1,240,866 $1,243,397 $— 
Commercial548 243 705 1,496 441,205 442,701 — 
Residential real estate2,297 627 2,598 5,522 1,064,852 1,070,374 — 
Home equity681 238 1,459 2,378 310,401 312,779 — 
Consumer108 31 23 162 25,610 25,772 — 
Total$3,901 $2,859 $5,329 $12,089 $3,082,934 $3,095,023 $— 
  
Financing Receivable, Nonaccrual [Table Text Block]
The following table presents the amortized cost basis of loans on non-accrual status (including non-accruing TDRs) by portfolio segment as of the dates indicated:
December 31,
20202019
(In thousands)Non-Accrual Loans With an AllowanceNon-Accrual Loans Without an AllowanceTotal Non-Accrual LoansTotal Non-Accrual Loans
Commercial real estate(1)
$450 $62 $512 $— 
Commercial1,549 58 1,607 784 
Residential real estate3,136 341 3,477 4,096 
Home equity1,961 35 1,996 2,130 
Consumer4 — 4 24 
Total$7,100 $496 $7,596 $7,034 
(1)    Commercial real estate was segmented into non owner-occupied and owner-occupied upon adoption of CECL, effective January 1, 2020. At December 31, 2020, commercial real estate - non owner-occupied and owner-occupied non-accrual balances with an allowance were $351,000 and $99,000, respectively, and commercial real estate - non owner-occupied and owner-occupied non-accrual balances without an allowance were $15,000 and $47,000, respectively.

The following table presents the amortized cost basis of collateral-dependent non-accrual loans (including non-accruing TDRs) by portfolio segment and collateral type, as of the date indicated:
December 31,
2020
Collateral TypeTotal Collateral -Dependent Non-Accrual Loans
(In thousands)Real Estate General Business Assets
Commercial$— $689 $689 
Residential real estate248 — 248 
Total$248 $689 $937 
  
Troubled Debt Restructuring and Specific Reserve Related to TDRs The following is a summary of TDRs, by portfolio segment, and the associated specific reserve included within the ACL for the dates indicated:
Number of ContractsRecorded InvestmentSpecific Reserve
(In thousands, except number of contracts)
December 31,December 31,December 31,
202020192020201920202019
Commercial real estate(1)
2 2 $328 $338 $37 $30 
Commercial2 2 100 123 — — 
Residential real estate21 22 2,638 2,869 364 364 
Consumer and home equity
— 1 — 299 — 69 
Total25 27 $3,066 $3,629 $401 $463 
(1)    Commercial real estate was segmented into non owner-occupied and owner-occupied upon adoption of CECL, effective January 1, 2020. At December 31, 2020, all commercial real estate TDRs were classified as owner-occupied.
  
Summary of All Troubled Debt Restructuring Loans (Accruing and Non Accruing) by Portfolio Segment
The following represents loan modifications that qualify as TDRs that occurred during the periods indicated:
Number of ContractsPre-Modification
Outstanding
Recorded Investment		Post-Modification
Outstanding
Recorded Investment		Specific Reserve
(In thousands, except number of contracts)
For the Year Ended December 31,For the Year Ended December 31,For the Year Ended December 31,For the Year Ended December 31,
202020192018202020192018202020192018202020192018
Residential real estate:
Interest rate and maturity concession
— 2 2 $— $64 $231 $— $69 $254 $— $15 $50 
Payment deferral
— — 1 — — 166 — — 166 — — 45 
Total— 2 3 $— $64 $397 $— $69 $420 $— $15 $95 
  
Summary of Impaired Loan Balances and Associated Allowance by Portfolio Segment The following is a summary of impaired loan balances and the associated allowance by portfolio segment as of and for the periods indicated:
For the Year Ended
(In thousands)Recorded InvestmentUnpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized
December 31, 2019:
With related allowance recorded:          
Commercial real estate$128 $128 $30 $130 $11 
Commercial— — — 292 — 
Residential real estate2,395 2,395 364 2,989 110 
Home equity318 318 69 522 — 
Consumer— — — — — 
Ending balance2,841 2,841 463 3,933 121 
Without related allowance recorded:          
Commercial real estate274 433 — 381 13 
Commercial319 685 — 238 7 
Residential real estate989 1,116 — 1,258 21 
Home equity55 192 — 115 — 
Consumer— — — 1 — 
Ending balance1,637 2,426 — 1,993 41 
Total impaired loans$4,478 $5,267 $463 $5,926 $162 
December 31, 2018:
With related allowance recorded:          
Commercial real estate$131 $131 $23 $1,969 $11 
Commercial556 556 53 111 — 
Residential real estate3,471 3,471 586 3,591 127 
Home equity318 318 162 250 — 
Consumer— — — — — 
Ending balance4,476 4,476 824 5,921 138 
Without related allowance recorded:          
Commercial real estate799 975 — 2,269 13 
Commercial230 293 — 1,379 8 
Residential real estate1,291 1,415 — 1,524 34 
Home equity124 305 — 195 — 
Consumer6 13 — 1 — 
Ending balance2,450 3,001 — 5,368 55 
Total impaired loans$6,926 $7,477 $824 $11,289 $193 
  
Temporary Loan Modifications
The Company's loans impacted by the COVID-19 pandemic and operating under temporary short-term payment deferral arrangements for a period of 180 days or less were as follows for the date indicated:
December 31,
2020
(In thousands, except number of units)UnitsAmortized
Cost		% of
Total Loans
Commercial25 $19,866 0.6 %
Retail28 6,669 0.2 %
Total53 $26,535 0.8 %